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Michael Eisner,

Chairman of the Board and

Chief Executive Officer

Roy Disney,

Vice Chairman of the Board

and Chairman of Feature

Animation

Sanford Litvack,
Vice Chairman of the Board

Thomas Staggs,

Senior Executive Vice

President and Chief

Financial Officer

Toy Story 2

 

brought Woody back to the big

screen, while coming in first at the box office with a record

Thanksgiving opening weekend total of $57.4 million.

Peter Murphy,

Senior Executive Vice

President and Chief

Strategic Officer

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TABLE OF CONTENTS

INTRODUCTION

December 1999

Walt and Roy Disney began their partnership on October 16, 1923 when they signed a contract to produce the 

Alice

Comedies

, a series of six- to eight-minute animated films, or "shorts," combining live-action and animation. What

began as the Disney Brothers Studio evolved into The Walt Disney Company.

Throughout the decades, the company has expanded worldwide from shorts to feature-length animated and live-action

films and television production; character merchandise licensing; consumer products retailing; book, magazine and

music publishing; Internet activities; television and radio broadcasting; cable television programming; and the

operation of theme parks and resorts.

From the creation of 

Oswald the Lucky Rabbit

 in 1927 and the debut of Mickey Mouse in 1928 to the premiere of

Tarzan

 in 1999, animation has remained the defining signature of the company. Along the way, Disney has added

successful TV shows like 

Who Wants To Be A Millionaire

, opened theme parks in California, Florida, France and Japan,

launched more than 700 Disney Stores and added brands such as Touchstone, Miramax, ABC and ESPN to the fold.

Fiscal 1999 marked the first year the Disney Fact Book was published exclusively on the Disney Investor Relations Web

site at 

www.disney.go.com/investors

, making it instantaneously available to interested investors. Making the Fact Book

available electronically is also a small example of cost-containment being initiated within every facet of the company

and uses a communication medium that Disney is taking on full-force: the Internet. In November 1999, Disney and

Infoseek combined their Internet assets into one entity, GO.com, creating a focal point for all of Disney's Internet

activities and also giving Disney the flexibility required to compete effectively with its Internet peers.

The company also introduced a new financial reporting structure designed to provide investors with a better

understanding of the dynamics of Disney鈥檚 business and the value of Disney鈥檚 assets. Instead of three operating

segments, Disney now reports along five lines of business, which can be seen throughout this year鈥檚 Fact Book. Theme

Parks and Resorts is reported as before. Broadcasting is now referred to as Media Networks, with a further breakdown

separating cable networks from broadcast-related businesses. Creative Content is now reported in three parts 鈥 Studio

Entertainment, Consumer Products and Internet and Direct Marketing. After the fiscal year end, the Internet and Direct

Marketing division combined with Infoseek to become Disney鈥檚 Internet business, GO.com, as mentioned above.

Disney remains committed to its overriding objective of creating shareholder value by continuing to be the world鈥檚

premier entertainment company from a creative, strategic and financial standpoint. The company strives to maintain

and build upon the integrity of the Disney name and franchise, while preserving and fostering the fundamental values

of quality, imagination and guest service.

Thank you for your interest in The Walt Disney Company.

Sincerely,

Winifred Markus Webb

Senior Vice President

Investor Relations and Shareholder Services

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct Marketing

FINANCIAL INFORMATION
Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

Tarzan

, Disney鈥檚 37th animated film, features five captivating new songs by Phil Collins,

which helped sell more than 3.1 million copies of the movie soundtrack.

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TABLE OF CONTENTS

INTRODUCTION

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

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TABLE OF CONTENTS

INTRODUCTION

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

Key Dates

Fiscal Year 1999

October 16, 1998

The Walt Disney Company celebrates 75 years of magic by honoring Disney Legends past

and present in a special ceremony in the newly unveiled Disney Legends Plaza in Burbank.

November 18, 1998

Disney completes its acquisition of a 43% equity interest in Infoseek, a leading Internet

navigation company.

November 25, 1998

Disney and 

Pixar

, the creators of the 1995 blockbuster 

Toy Story

, team up to release their

second computer animated film,

 A Bug鈥檚 Life

.

December 20, 1998

Disney Theatrical Productions premieres the first international production of 

The Lion King:

The Broadway Musical

 in Tokyo, Japan. There are more than 232 puppets in the show,

including rod puppets, shadow puppets and full-sized puppets.

January 12, 1999

Disney and Infoseek launch the Internet portal, 

GO Network

.

February 25, 1999

Bob Iger is promoted to the newly created posts of chairman of the ABC Group and

president of Walt Disney International.

May 1, 1999

MouseWorks

a half-hour original television series, premieres on 

Disney鈥檚 One Saturday

Morning

, marking the first time all of Disney鈥檚 standard characters 鈥 Mickey, Minnie, Donald

Duck, Goofy and Pluto 鈥 star together in an original television series.

June 5, 1999

Walt Disney Theatrical Productions opens a stage production of 

The Hunchback of Notre

Dame

 

in Germany. The musical was adapted for the stage by Alan Menken and Stephen

Schwartz, the same team responsible for the music in the animated feature.

June

 

16, 1999

DisneyQuest

, a five-story themed entertainment facility that combines Disney's magic with

cutting-edge technologies, such as virtual reality, opens in Chicago. The flagship

DisneyQuest

 opened at Walt Disney World Resort in Orlando in June 1998, and a

subsequent site is slated to open in Philadelphia in summer 2000.

July 8, 1999

ABC Entertainment Television Group is formed composed of the Walt Disney Television

Studio, including Buena Vista Television Productions, and ABC鈥檚 Prime Time Division.

July 12, 1999

Disney and Infoseek announce an agreement to combine their Internet businesses under

the name 

GO.com

 in connection with the acquisition by Disney of the 58% of Infoseek that

it did not own in exchange for a new class of Disney common stock called GO.com (

NYSE:

GO

).

August 24, 1999

Disney agrees to sell Fairchild Publications Inc., a subsidiary of ABC Inc. and publisher of

 W,

Jane 

and

 Women鈥檚 Wear Daily

, to Advance Publications, Inc.

September 8, 1999

ABC, Inc. president Steven Bornstein is named chairman of The Walt Disney Company鈥檚

Buena Vista Internet Group.

September 23, 1999

Sanford Litvack is named vice chairman of Disney鈥檚 Board of Directors.

September

 

24, 1999

The Lion King: The Broadway Musical

 

previews at the Lyceum Theatre in London.

September

 

29, 1999

Euro Disney SCA announces the launch of its second theme park, Disney Studios, scheduled

to open in the spring of 2002 at the 

Disneyland Paris

 site.

 

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TABLE OF CONTENTS

INTRODUCTION

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

October 16, 1923: The Disney Brothers Studio is founded by Walter E. and Roy O. Disney in a contract with M.J. Winkler for a series of
animated short subjects entitled the Alice Comedies.

November 18, 1928: Mickey and Minnie Mouse debut in Steamboat Willie, Disney s first animated film with sound effects and dialogue.

December 16, 1929: The Disney Brothers partnership is replaced by Walt Disney Productions, Ltd.; Walt Disney Enterprises; Liled
Realty and Investment Company; and the Disney Film Recording Company.

September 5, 1930: Pluto makes his cartoon short debut in The Chain Gang.

May 25, 1932: Disney introduces Goofy to the public in the cartoon short Mickey鈥檚 Revue.

July 30, 1932: The first full-color animated film, Flowers and Trees, is released and later earns Walt Disney his first Academy Awardfi
for Best Cartoon Short Subject.

June 1, 1933: The first Mickey Mouse watch is sold by Ingersoll-Waterbury Co.

June 9, 1934: Donald Duck first appears in The Wise Little Hen.

December 21, 1937: Snow White and the Seven Dwarfs, the first feature-length animated film, premieres accompanied by the first
comprehensive merchandise campaign.

September 29, 1938: Walt Disney Productions absorbs the three other Disney companies created in 1929.

April 2, 1940: Walt Disney Productions issues 155,000 shares of 6% cumulative convertible preferred stock in the over-the-counter
market.

May 6, 1940: Walt Disney Productions completes its move to its new studio lot in Burbank, CA.

December 16, 1952: WED Enterprises is founded as a private company owned solely by Walt Disney to design and create Disneyland.

April 6, 1953: Retlaw Enterprises is founded as a private company solely owned by Walt Disney to control the merchandising rights to
the name "Walt Disney."

November 10, 1953: Buena Vista Pictures Distribution distributes its first film, The Living Desert.

October 27, 1954: Disneyland, a one-hour weekly television series that ultimately aired for 29 seasons under six different titles, debuts
on ABC.

July 17, 1955: Disneyland first opens its gates in Anaheim, California. Walt Disney Productions invests $500,000 to own 34.5% of
Disneyland, Inc., the company that owns Disneyland.

October 3, 1955: The Mickey Mouse Club first airs on ABC.

June 19, 1957: Walt Disney Productions exercises options to purchase an additional 31.0% stake in Disneyland, Inc. for $528,810.

July 6, 1960: Walt Disney Productions purchases the remaining 34.5% interest in Disneyland, Inc. for $7.5 million.

February 3, 1965: Walt Disney Productions acquires WED Enterprises from Walt Disney for approximately $4 million.

December 15, 1966: Walt Disney dies.

October 1, 1971: The Magic Kingdom opens at Walt Disney World.

December 20, 1971: Roy O. Disney dies.

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July 8, 1981: Walt Disney Productions acquires the rights to Walt Disney s name, likeness and portrait, as well as the steam train and
monorail systems at Disneyland, from Retlaw for 888,461 shares of common stock, worth $46.2 million.

October 1, 1982: Epcot opens at Walt Disney World.

April 1, 1983: Walt Disney Pictures is incorporated as a separate company responsible for the development, production and marketing
of all live-action films and commercial television programming.

April 15, 1983: Tokyo Disneyland opens six miles from downtown Tokyo.

April 18, 1983: The Disney Channel first broadcasts cable television programming.

March 9, 1984: Touchstone Pictures releases its first film, Splash.

June 8, 1984: MM Acquisition Corporation announces its intent to take over and dismantle Walt Disney Productions by offering $67.50
a share for Disney common stock.

June 11, 1984: Walt Disney Productions repurchases 4.2 million shares (approximately 11.1%) of Disney common stock from Reliance
for $328 million.

September 22, 1984: Walt Disney Productions welcomes Michael D. Eisner as chairman and chief executive officer and Frank G. Wells
as president and chief operating officer.

February 6, 1986: Walt Disney Productions changes its name to The Walt Disney Company.

March 28, 1987: The first Disney Store opens at the Glendale Galleria in Glendale, California.

January 21, 1988: The Walt Disney Company acquires the Wrather Corporation, whose assets include the Disneyland Hotel, for
approximately $161 million in cash and $89 million in debt.

May 1, 1989: The Disney-MGM Studios Theme Park and the Pleasure Island entertainment complex open at Walt Disney World.

November 6, 1989: 51% of Euro Disney S.C.A. s 170 million shares are offered to European investors at FF72 per share. A subsidiary
of The Walt Disney Company owns the remaining 49%.

November 1, 1990: The first international Disney Store opens on London s Regent Street.

May 6, 1991: The Walt Disney Company replaces USX Corporation in the Dow Jones 30 Industrials.

April 12, 1992: Euro Disney (later renamed Disneyland Paris) opens 20 miles outside of Paris, France.

December 9, 1992: The National Hockey League awards Disney a franchise that would later become The Mighty Ducks of Anaheim.

June 30, 1993: Buena Vista Pictures Distribution acquires Miramax Film Corporation.

April 3, 1994: Frank Wells, president and chief operating officer, dies.

April 18, 1994: Disney s first stage show, Beauty and the Beast: A New Musical, opens on Broadway, breaking attendance and box
office records.

June 24, 1994: Walt Disney Pictures releases The Lion King, which becomes Disney s most profitable film ever.

July 3, 1994:The Lion King soundtrack hits #1 on the Billboard chart, where it stays for nine consecutive weeks.

September 6, 1994: Disney theme parks welcome their one-billionth guest.

October 20, 1994: The Walt Disney Company sells a portion of its shares in Euro Disney S.C.A., operator of Disneyland Paris,
reducing its ownership interest to 39%.

March 3, 1995: The Lion King becomes the top-selling home video of all time, selling more than 30 million units domestically and
surpassing the record set in 1994 by Snow White and the Seven Dwarfs.

July 31, 1995: The Walt Disney Company announces its intention to acquire Capital Cities/ABC for approximately $19 billion.

January 4, 1996: Stockholders of Disney and Capital Cities/ABC approve the merger in their respective special meetings of
shareholders held in New York City.

February 9, 1996: The acquisition of Capital Cities/ABC becomes effective and CCB stock trades for the last time.

February 22, 1996: Disney Online launches

 Disney.com

, a Web site designed to promote a vast range of Disney products on the

Internet.

May 15, 1996: Disney forms a partnership with the California Angels baseball team, in which Disney has a 25% interest.

May 22, 1996: The world s largest Disney Store to date, at 40,000 square feet, opens on New York s Fifth Avenue and sets the all-time
record for single-day volume in a Disney Store.

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May 23, 1996: Disney joins McDonald s in a 10-year multinational marketing alliance linking 18,700 McDonald s restaurants to Disney鈥檚
theme parks and film and home video releases.

July 17, 1996: Disney announces plans to open Disney s California Adventure theme park in 2001 as part of the expanded Disneyland
Resort in Anaheim.

November 1, 1996: ESPN, Inc., launches ESPNews, a 24-hour-a-day sports news network.

November 18, 1996: Radio Disney, a live, music-intensive radio network for children debuts, offering fun, high-energy entertainment
and family-oriented programming for kids under the age of 12.

November 22, 1996: Disney sells Los Angeles Television Channel 9, KCAL, to Young Broadcasting Inc., New York, for $387 million, as
a condition of the ABC acquisition.

January 28, 1997: Comcast Corporation and ABC Cable Networks agree to form a new organization to acquire a majority interest in E!
Entertainment Television.

February 24, 1997: Disney announces a joint venture with Pixar to create five animated films over the next 10 years.

March 25, 1997: Disney announces that its employees will commit one million hours of volunteer service through the year 2000 in
response to the Presidents  Summit On America s Future.

April 3, 1997: Disney purchases a significant equity stake in Starwave Corporation, a leading producer of Internet media, and assumes
operational control of the company.

April 4, 1997: Knight-Ridder, Inc. announces an agreement with Disney to purchase four newspapers owned by ABC, Inc. for $1.65
billion.

September 3, 1997: ESPN reaches an agreement to acquire Classic Sports Network which features the greatest games, heroes and
stories in the history of sports.

November 13, 1997: The Lion King: The Broadway Musical debuts on Broadway in the newly refurbished New Amsterdam Theatre.
The Lion King went on to win six Tony Awards including Best Musical, Best Director - Musical and Best Costuming.

November 26, 1997: Oriental Land Company announces plans to proceed with Tokyo DisneySea, a new theme park adjacent to Tokyo
Disneyland.

April 22, 1998: Animal Kingdom, the fourth gate at Walt Disney World, opens.

May 22, 1998: The New Tomorrowland opens at Disneyland.

June 18, 1998: Disney announces its proposal to buy a 43% stake in Infoseek, a leading Internet navigation service.

June 19, 1998: DisneyQuest, an interactive entertainment facility, opens at Downtown Disney West Side at Walt Disney World Resort.

June 19, 1998: Disney records a three-for-one stock split.

July 12, 1998: ESPN Zone, a sports-themed restaurant and entertainment complex, debuts in Baltimore, MD. A second and third ESPN
Zone subsequently opened in Chicago, IL and New York City s Times Square.

July 30, 1998: Disney Magic departs on its maiden voyage. Disney s second cruise ship, Disney Wonder, launched the next summer.

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TABLE OF CONTENTS

INTRODUCTION

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

鈥 

Who Wants To Be A Millionaire

 was the top-rated program on any

network during its August debut. Both the August and November runs

represented a reach of nearly half the U.S. population.

鈥 In 1999, the Cable businesses within Media Networks, combined with

the net impact of 

A&E

Lifetime

 and Disney鈥檚 other cable investments,

delivered more than $1 billion of operating profits and a growth rate of

more than 30% versus 1998.

鈥 Celebrating its 20th anniversary, 

ESPN

 has grown from 70 to 2,200

employees, 1.4 million to 76 million U.S. subscribers and maintains a

full or partial interest in 20 international networks.

鈥 Within the past three years, the 

Disney Channel

 has added an

average of 1.2 million new subscribers every month, growing from 14

million homes to more than 60 million homes worldwide, making it

one of the fastest-growing networks in the cable industry.

鈥 In January 2000, Disney/ABC Cable Networks launches a cable

television network devoted exclusively to soap operas called 

SoapNet

.

During the 1998-1999 season, ABC won more nights than any other

network 鈥 85 鈥 among adults 18 to 49 and the 1999-2000 season

started off with a November sweeps win.

John Carpenter, pictured with his

wife Debbie and host Regis Philbin,

made history as the first

million-dollar winner of the popular

game show,

 Who Wants To Be A

Millionaire.

Walt Disney Television Animation鈥檚 

One

Saturday Morning

 series, 

Recess

,

 will

hit the silver screen in Summer
Vacation: The Ultimate Recess.

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-----------

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Disney鈥檚 

PB&J Otter

 helped the

Disney Channel鈥檚 delivery among

2-5 year olds grow by 17%

compared to one year ago,

expanding from 214,000 to

250,000 preschoolers per week.

ESPN is the #1 generator of local advertising sales

revenue among all networks, bringing in

approximately 20% of all local advertising sales

revenue and 42% more local advertising sales revenue

than its nearest competitor.

Don't hurt yourself laughing when

you see these outtakes from ESPN

over the years.

RealVideo:  | 

28.8

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Fantasia / 2000

 makes motion picture history when it debuts

exclusively at IMAX庐 theaters around the world. It has the distinction

of being the first theatrical feature length film ever released in this

giant-screen, large format process.

鈥 

Hollywood Pictures鈥 

The Sixth Sense

, released last August, was

Disney鈥檚 highest grossing domestic live-action film ever, registering

#1 at the box office five consecutive weekends in a row. 

The Sixth

Sense

 joins 

Titanic

 as one of the only two films in history to record five

consecutive $20 million weekends.

鈥 

Buena Vista Home Entertainment

 announced that it would release

nine of the most popular animated Disney features on DVD, with each

title to be offered during a limited 60-day time window. The animated

features are 

Pinocchio, 101 Dalmatians, Hercules, Mulan, Lady and the

Tramp, Peter Pan, Simba鈥檚 Pride, The Jungle Book

 and 

The Little

Mermaid

. BVHE also announced that 26 titles will come off moratorium

and be sequenced back into the market starting in January 2000,

including the Disney Platinum Collection that will consist of ten films,

one being released each fall for the next ten years.

鈥 In calendar 1999, Buena Vista Home Entertainment products

represented four of the top ten best-selling titles of the year, including

the first and second rankings, 

A Bug鈥檚 Life

 and 

Mulan

, respectively.

In 1949, Disney offered its first

classic soundtrack, 

Cinderella

. Today

Walt Disney Records

 continues with a

steady stream of new releases and

reissues of classic soundtracks.

Fantasia / 2000

, initiated and spearheaded by Roy Disney, continues and builds upon Walt

Disney鈥檚 original idea with the creation of a musical repertoire program that includes seven new

animated segments and two returning favorites 鈥 

The Sorcerer鈥檚 Apprentice

 and 

The Nutcracker

Suite

.

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TABLE OF CONTENTS

INTRODUCTION

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

鈥 Last March, Disney's 

Animal Kingdom

 opened a new land, 

Asia

,

devoted to the rainforests and wild creatures of southern Asia.

鈥 

Tarzan's Treehouse

, which opened last June in 

Disneyland鈥檚

Adventureland

, is located on the former site of the Swiss Family

Robinson Treehouse. For its reintroduction as Tarzan's home, ten feet

were added to the height of the tree.

鈥 Last July, 

Rock 'n' Roller Coaster Starring Aerosmith

 opened at

Disney-MGM Studios

. This attraction takes guests from 0 to 60 mph in

less than three seconds and includes three complete inversions. This is

the first Disney attraction to take guests upside down.

鈥 Last August, 

Disney Cruise Line

 christened its second luxury ocean

liner, 

Disney Wonder

. Like its sister ship 

Disney Magic, Disney Wonder

will travel from Port Canaveral, Florida to Castaway Cay, Disney鈥檚 own

island in the Bahamas, as well as St. Maarten and St. Thomas in the

Caribbean, with excursions to St. John.

鈥 Disney Regional Entertainment opened the second 

ESPN Zone

 in

Chicago and the third ESPN Zone in New York. Each includes the Studio

Grill for dining and refreshments, the Screening Room with custom

leather recliners and multiple viewing screens and the Sports Arena

with interactive and competitive attractions.

鈥 

Disney鈥檚 Winter Summerland

, a complex featuring two 18-hole

mini-golf courses, opened adjacent to 

Blizzard Beach

 at Walt Disney

World Resort last April.

Adult 1-Day Pass Price History

Calendar

Year

Walt Disney

World

Disneyland

1986

$26.00

$19.00

1987

$28.00

$21.50

1988

$28.00

$23.50

1989

$30.65

$25.50

1990

$32.75

$27.50

1991

$34.85

$27.50

1992

$35.90

$28.75

1993

$37.60

$30.00

1994

$38.00

$31.00

1995

$39.22

$33.00

1996

$40.81

$34.00

1997

$42.14

$36.00

1998

$44.52

$38.00

1999

$46.64

$39.00

Prices include sales tax where applicable.

Asia

 features Maharajah Jungle

Trek, a hike through dense

jungle past ancient fortified

village ruins inhabited by

tigers, gibbons and other

exciting animals.

The ESPN Zone in Chicago

includes a Sports Arena that

challenges fans with a variety of

interactive and competitive

attractions.

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-----------

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Want to travel to Walt Disney World?

Disney Theme Park

Opening Dates

d

Disneyland

 

Resort

July 1955

Magic Kingdom

October 1971

Epcot

October 1982

Tokyo Disneyland

April 1983

Disney-MGM Studios

May 1989

Disneyland Paris

April 1992

Disney's Animal Kingdom

April 1998

Disney's California Adventure

Spring 2001

Tokyo DisneySea

Spring 2001

Disney Studios Paris

Spring 2002

The 

Disneyland Resort

 will encompass 490 acres once

Disney's California Adventure, built entirely within

Disneyland鈥檚 old parking lot, is complete in 2001.

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TABLE OF CONTENTS

INTRODUCTION

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

鈥 

The Disney Store

 opened a 15,675-square-foot,

jazz-and-blues-themed flagship store on Chicago's famed Michigan

Avenue last August.

鈥 

Disney Interactive's 

Tarzan

 products were a hit, with both 

Disney鈥檚

Action Game: Tarzan

 and 

Disney鈥檚 Activity Center: Tarzan

 debuting as

top-ten sellers in their respective categories.

鈥 

ESPN The Magazine

 won the 1999 National Magazine Award for Design

and has increased its circulation from 350,000 to one million since its

launch in March 1998.

鈥 Last October, Hyperion Books for children released 

Little Bo

, the third

book for children by international celebrity, Julie Andrews. 

Listen to

Julie Andrews read

 Little Bo

.

鈥 

FamilyFun

, published by Buena Vista Magazines Inc., with a circulation

of 1.2 million, is the leading magazine targeting families with children

from ages three to twelve.

There are more than 700 Disney Stores in 11

countries, attracting 200 million guests annually.

Each 

FamilyFun

 issue is packed

with quick activities, family

travel destinations, easy

recipes and reviews of family

entertainment.

Disney鈥檚 classic animated characters are brought to life

through the many CD-ROMs and video games offered by

Disney Interactive.

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TABLE OF CONTENTS

INTRODUCTION

THE COMPANY TREE

YEAR IN REVIEW

BUSINESS SEGMENTS

Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

鈥 Last November, Disney and Infoseek shareholders approved the

combination of Infoseek with Disney鈥檚 Internet assets and the issuance

to former Infoseek shareholders of a new class of Disney common

stock called 

GO.com

, which began trading on the NYSE (NYSE: GO)

November 18, 1999.

鈥 

ESPN Internet Group (EIG)

, part of 

GO.com

, wrapped up a year that

saw its reach exceed that of its three nearest competitors combined.

鈥 "

Enhanced TV

" brings interactive content via the Internet that is

synchronized with 

ABC Monday Night Football

 and 

ESPN Thursday and

Sunday Night Football

. The typical ETV viewer stays connected for

approximately 33 minutes.

鈥 As of first quarter 2000, 

DisneyTravel.com

, Disney鈥檚 online travel

service, increased online bookings for 

Walt Disney World Resort

 by

248% over first quarter 1999.

鈥 

Disney Online

 has been the No. 1 ranked kids and family

entertainment Web site for the past year and half with a 25% increase

in audience reach from six months ago. Disney.com has surpassed its

closest major online studio competitor by more than one million unique

visitors and its closest children鈥檚 online competitor by more than four

million unique visitors.

鈥 Each weekday afternoon, 

ABCNEWS.com

 users receive an 

e-mail from

Peter Jennings

, anchor and managing editor of ABC News鈥

 

World News

Tonight

, describing what he and his producers have deemed the most

important, relevant news stories of the day and how they have

developed. Mr. Jennings is the first news anchor to provide daily

insight into the day鈥檚 news.

GO Network Internet Sites

Portal

Sports

News

Entertainment

Kids & Family

E-Commerce

GO.com

ESPN.com
ABCSports.com
NFL.com
NBA.com
WNBA.com
NASCAR.com
Soccernet

ABCNEWS.com

ABC.com
ABC Radio
Mr. Showbiz
Wall of Sound
Oscar.com
Soapnet.com

Disney.com
Disney鈥檚 Club Blast
Family.com

DisneyStore.com
Disney Travel Online
toysmart.com
GO Shopping
GO Auction
ESPNStore.com
Nascar Online Store

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The November 17, 1999 Web-cast of 

The Drew Carey Show

 on 

ABC.com

marked one of the largest online audiences watching a streaming media

event; the Web-cast marked nearly two million visits and served nearly

650,000 streams.

From November 7 to November 24, 

ABC.com

 received more

than five million players for its online version of

 

Who Wants

To Be A Millionaire

.

The "

Zoog Disney

" internet site features the

"Zoogs" (beings who live in "

Zeether

", the space

between television and the Internet) and has over

one million registered users.

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FINANCIAL INFORMATION

Income Statements
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CONTACT INFORMATION

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CONTACT INFORMATION

 

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YEAR IN REVIEW

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Media Networks
Studio Entertainment
Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
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Key Financial Ratios

CONTACT INFORMATION

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Media Networks
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Theme Parks & Resorts
Consumer Products
Internet & Direct
Marketing

FINANCIAL INFORMATION

Income Statements
Balance Sheets
Cash Flow Statements
Quarterly P&Ls
Stock Statistics
Key Financial Ratios

CONTACT INFORMATION

SUPPLEMENTAL INFORMATION

Corporate Headquarters

The Walt Disney Company

500 South Buena Vista Street

Burbank, CA 91521

(818) 560-1000

Registrar and Stock Transfer Agent

The Walt Disney Company

P.O. Box 11447

Burbank, CA 91510

(818) 553-7200

Independent Accountants

PricewaterhouseCoopers LLP

INFORMATION CONTACTS

Investor Relations and

Shareholder Services

Winifred Markus Webb

Senior Vice President

(818) 560-5758

Investor Relations -

The Walt Disney Company

Teri Klein

Director

(818) 560-6267

Investor Relations -

GO.com

Sonja Beals Iribarren

Director

(818) 560-7854

Shareholder Services

Jennifer LaGrow

Director

(818) 553-7200

Corporate Communications

John Dreyer

Senior Vice President

(818) 560-5300

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