2005 was the most successful year in Buena Vista International Television's (BVITV) history. Responsible for The Walt Disney Company's branded and non-branded international program distribution, BVITV now distributes more than 30,000 hours of programming to more than 1,300 broadcasters across 240 territories.

Driving BVITV's success and securing future growth is the international performance of network series, as well as the conclusion of major agreements in countries including Germany, Italy, Greece, Russia, Israel and the Asia-Pacific region. Lost is now thrilling audiences in more than 190 territories. The show has been a number one hit in places such as the U.K., France, Russia, Latin America and Australia. Desperate Housewives has also performed well with international audiences, selling into more than 200 territories and becoming a top-rated series in Australia, the U.K., Singapore, South Africa and Germany. In 2006, local versions of Desperate Housewives will go into production in at least five Latin American countries.

Going into 2006, BVITV is expanding its video-on-demand business as new technology plays an increasing role in content distribution, and will add preschool series Mickey Mouse Clubhouse and Disney's Little Einsteins to its current roster of network series and movies.

The Company's international equity investment portfolio was expanded by establishing a new joint venture video-on-demand movie service, FilmFlex, currently rolling out on digital cable across the U.K. The wider investment portfolio includes stakes in Super RTL and RTL 2 in Germany, GMTV in the U.K. and HBO services in Central Europe and Latin America.