Financial Review

Fiscal 2006 Results

During fiscal 2006, Disney delivered record earnings per share of $1.64, an increase of 34% over fiscal 2005. Our Company’s earnings this year were particularly gratifying because all of our operating segments delivered double-digit growth.

We achieved this strong earnings performance while investing to position our Company for growth in the future. During 2006, we invested in a wide variety of content-based projects for a broad range of distribution platforms. We also made investments to further establish Disney in important emerging international markets like China, Russia and India. Looking ahead, we will continue to allocate resources in these burgeoning areas and at the same time will continue to fortify Disney’s existing businesses. In 2007, we expect to increase our overall capital spending by approximately $400 to $500 million, with roughly half of this increase going toward our Theme Parks and the majority of the rest allocated toward digital initiatives at Media Networks.