LETTER TO SHAREHOLDERS

In fiscal 2008, despite an economy that weakened as the year progressed, we delivered strong creative and financial results, posting record revenue and earnings per share.

Highlighting our financial achievements, revenue hit an all-time high of $37.8 billion, a 7 percent increase over the previous year. Earnings per share, excluding certain items detailed in the footnote on the Financial Highlights section, were $2.27, up 18 percent from the previous year.

As has been the case for many years, our financial success has been largely due to our creative achievements and in 2008, those achievements were numerous. I could mention many, but instead I’d like to highlight just three.

This past summer, Disney•Pixar once again enthralled audiences around the world with an original, unique and memorable film. Wall•E was a commercial, creative and technological success. Director and writer Andrew Stanton and his team created a film for the ages and for all ages, and we are extremely proud of their work.

As Americans turned out in record numbers to elect the 44th president of the United States, ABC News, led by anchors Charlie Gibson, Diane Sawyer and George Stephanopoulos, brought the right mixture of excellent reporting and thoughtful analysis to this memorable and historic election, capping months of insightful, interesting and energetic coverage of the American political process.

Thanks to our Imagineers, at our parks in California and Florida we opened Toy Story Mania!, an engaging attraction that combines the wonder and lovability of the Toy Story characters with breakthrough technology. The result is yet another theme park experience that distinguishes our Company and causes people to say: “What will they think of next?” or, “Only Disney can do that.”

Wall•E was a global box office hit, charming audiences around the world.

Wall•E was a global box office hit, charming audiences around the world.

Combining breakthrough technology with the fun of an old-fashioned midway game, Toy Story Mania! is a new Guest favorite.

Combining breakthrough technology with the fun of an old-fashioned midway game, Toy Story Mania! is a new Guest favorite.