Financial Review

Shareholder Returns

At the end of fiscal 2004, having achieved our targeted debt reduction, we began to aggressively repurchase Disney stock as a means of returning value to our shareholders. From August 2004 through the end of fiscal 2006, we have bought almost 350 million Disney shares for over $9.6 billion. In Fiscal 2006 alone, we repurchased 243 million shares of Disney stock for approximately $6.9 billion. We believe our repurchase activity reflects not only our discipline in returning value to shareholders, but also our confidence in our ability to grow shareholder value over time.

We are also proud of our track record of returning value to shareholders through annual dividends. In December 2006, Disney’s Board of Directors declared a cash dividend of $0.31 per share or approximately $640 million in total. This marks the 51st consecutive year that Disney has paid a dividend and the third consecutive year of double-digit growth in dividends per share.

Of course, our overall goal is to deliver attractive total shareholder returns over time. For the 20 year period through fiscal 2006, an investment in Disney has yielded a compound annual return of 12.6%, roughly 90 basis points above the S&P 500. Over the past twelve months, our strong financial performance has helped deliver a total return to Disney shareholders of over 37% versus over 14% for the S&P. ⁶