Disney Princess merchandise continues to show strong growth and will expand into new international markets such as India, Russia and China in 2006. Supported by the Cinderella Platinum Edition DVD in fall 2005 and The Little Mermaid Platinum Edition DVD in fall 2006, Disney Princess is on track to become the largest global girls franchise in 2006.

Disney Fairies, our newest franchise, builds upon the enormous popularity of Tinker Bell, introducing six-to-nine year-old girls to her secret, magical world. In September 2005, Disney Publishing Worldwide (DPW) released Fairy Dust and the Quest for the Egg by Newbery Honor-winning author Gail Carson Levine. Fairy Dust has already reached children and parents in 45 countries around the world with a one million copy launch. In 2006, a breadth of Disney Fairies products will inspire girls to believe.