The Walt Disney Company 2007 Annual Report
---INTRODUCTIONKEY BUSINESSESFINANCIALSSITE MAP---
LETTER TO SHAREHOLDERS

We made a number of significant decisions this past year that are designed to reinforce the Disney Difference while increasing long term shareholder value.

We purchased Club Penguin, a vibrant and entertaining online world for kids and families that will help anchor our strategy to grow in this important and expanding space. We are proud to call Club Penguin our own, and believe that it is a great fit from a creative and a strategic perspective.

At Disney.com, we recently launched a richly detailed online Pirates world and are expanding the popular virtual universe built around Tinker Bell and her friends, where fans have already created 3.5 million fairies. We are also developing an exciting online version of Radiator Springs, making the world of Cars interactive, one of our most successful content and merchandising franchises. The creation of more such compelling immersive worlds, which feature a safe, entertaining way for kids to network and play games, is a key priority of ours.

We've also recently announced plans to expand and improve Disney's California Adventure in celebration of the hope and optimism that attracted Walt Disney to California in the 1920s. The addition of new family attractions, entertainment and an entirely new land, Cars Land, should make our successful Disneyland Resort even more of a must-see destination.

Our decision last year to build two new cruise ships was an exciting one. This business has not only delivered impressive returns, but it has become an important brand builder for us. Guests love the experience and appreciate the way we've extended this family vacation offering. We have also unveiled plans to develop a new resort at a stunning location on the Hawaiian island of Oahu, expanding our successful Disney Vacation Club concept, as well as offering a great Disney family resort experience in Hawaii.

Efforts to build our video game business are encouraging, and we will continue to invest in this growth area. We believe it will become a significant growth driver for us and can be supported by our numerous businesses in order to maximize potential and create long-lasting value.


Top: Club Penguin.

Bottom: Kids around the world celebrate their love of Mickey Mouse in style.