In 2004, the magical powers of W.I.T.C.H. debuted. The acclaimed magazine from Disney Publishing cast a spell on Europe first, and expanded into toys, stationery and apparel. W.I.T.C.H. will take center stage in 2005 with the global release of an animated TV series on ABC Family and Toon Disney's boys programming block, Jetix, and will be supported by new products across all lines of business.

Also in 2005, the secret, tiny world of Tinker Bell and her fairy friends will be discovered by young girls around the world with the launch of an illustrated novel from Disney Publishing, Fairy Dust and the Quest for the Egg, by renowned author Gail Carson Levine. The novel will be followed by an extensive, multi-title book and merchandise launch that will be the foundation for a new long-term property called Disney Fairies.

Disney Publishing garnered great literary success with such stories as Peter and the Starcatchers, the Peter Pan prequel from Hyperion Books For Children, which became an instant New York Times bestseller, and the popular cartoonist Mo Willems' Don't Let the Pigeon Drive the Bus, which received the 2004 Caldecott Honor.

Buena Vista Games (BVG) and its publishing labels, Disney Interactive and Buena Vista Interactive, continued to broaden and strengthen the Company's position in the interactive entertainment industry in 2004.

BVG expanded its self-published Nintendo Game Boy Advance® business by more than 200% with games based on hit Disney Channel programs including Lizzie McGuire, Kim Possible, and Lilo & Stitch, collectively selling more than one million units. Sequels to those titles, as well as That's So Raven, are set to hit stores in 2005.

Additionally, BVG's licensed games, such as Kingdom Hearts from Disney and Square-Enix, shipped more than four million units worldwide, with a sequel due in 2005. Disney/Pixar's Finding Nemo has shipped more than five million units worldwide and new games are in development for Disney/Pixar's The Incredibles and Cars.

In the year ahead, BVG will broaden its self-publishing strategy with upcoming multiplatform video game releases of TRON 2.0 Killer App, Chicken Little, Tim Burton's The Nightmare Before Christmas and The Chronicles of Narnia: The Lion, the Witch and the Wardrobe.

Disney Publishing debuted Peter and the Starcatchers.

Kingdom Hearts game from Disney Interactive.

The popular new Disney Dream Desk PC.