From the first Mickey Mouse plush to the Snow White and the Seven Dwarfs figurines that launched the first movie merchandising tie-in to the interactive, fast-talking Lightning McQueen car from Disney*Pixar's Cars, Disney Toys has been bringing magic to playtime for children and families all over the world.

Based on annual retail sales, Disney Toys¹ would be considered the third largest toy company in the world if it operated as an independent toy business. This success comes from Disney Toys' dedication to its role as an innovator and leader in the development of traditional toys to contemporary playthings that bring Disney characters and stories to life.

Disney Princess continues to be the most successful property for Disney Toys with impressive double digit growth globally thanks to product assortments inspired by the Platinum Edition DVD releases of Cinderella and The Little Mermaid. Disney Toys also supports Disney Fairies, The Walt Disney Company's newest franchise for six-to-nine year olrd girls, with an array of play sets and role play items inspiring girls around the world to believe in the magic of Tinker Bell and her fairy friends.

Disney films have provided inspiration for new toys and have driven the success of Disney toys in the boys category. With blockbusters such as the Pirates of the Caribbean franchise and Disney*Pixar Cars, and the long-running success of Disney Channel's Power Rangers Disney has become a powerhouse for boys. Additionally, Disney Toys has expanded its presence in the preschool category inspired by entertainment and content from Disney Channel's hit preschool series Mickey Mouse Clubhouse, Little Einsteins and coming up, My Friends Tigger & Pooh.

In order to stay at the forefront of the convergence trend between traditional toys and consumer electronics, Disney Electronics merged under Disney Toys in 2006. Since it's inception in 2002, Disney Electronics has led innovation with the first line of consumer electronics for children. Products such as MP3 players and personal DVD players are ergonomically designed for smaller hands and durably-built featuring consumer electronic grade components and drop test technology.

To date, Disney Electronics continues to innovate in the global children's consumer electronics marketplace. In 2005, the tremendously successful Disney Mix Stick Player was introduced; this MP3-player for kids earned critical praise and sold-out at retail during the critical Holiday shopping period. According to The NPD Group Inc., the Mix Stick now ranks as one of the Top 10 flash-based MP3 Player brands in the marketplace. In 2006, Disney expanded its line of digital electronics to include a new line of digital cameras and a brand new portable multimedia player, the Disney Mix Max, which plays movies, music and photos on a 2.2 LCD screen. Character-themed electronics are also a booming business for Disney Electronics. In 2006, Disney Electronics expanded its line of Mickey Mouse and Disney Princess-themed electronics to include a new line inspired by the Disney*Pixar event film of the summer, Cars.

The integration of Disney Electronics with Disney Toys enables Disney to remain on the cutting edge of the marketplace with compelling products for children fostering creativity through new technologies.

Product Categories:

Toys

Electronics

Appliances

• Disney Popcorn Popper
• Disney Smoothie Maker
• Disney Ice Cream Maker
• Disney Ice Shaver
• Disney Toaster
• Disney Waffle Maker

Key Licensees:

• Bandai America Inc. — Power Rangers toys
• Fisher-Price — Winnie the Pooh and Disney Princess infant/pre-school toys
• Hasbro Inc. — toys inspired by Disney film and television properties
• Mattel — Disney Princess fashion dolls
• Playmates Toys Inc. — Disney Princess large dolls and playsets
• Tomy — toys for the Japan market (all categories)
• Starlight — consumer electronics
• Digital Blue — consumer electronics

Recent Awards:

• Pirates of the Caribbean Black Pearl Playset wins Child magazine's 2006 "Best Toys of the Year Award" (11/06)
• Cars' Fast Talkin; Lightning McQueen named among the Fab 14 winners of the Great American Toy Test; Turbo Tail Tigger and Pirates Black Pearl Playset receive an honorable mention. The Little Mermaid Magical Talking Salon and Fast Talkin' Lightning McQueen are named among the "Best Toys of 2006" by popular parents website, Kaboose.com (12/06)
• Disney Fairies Hollow Tree Playset is selected among Parens magazines "Best Toys" (11/06)
• "Love to Walk Baby Pooh" voted the #1 toy for toddlers by The Today Show Annual Toy Test 2004
• "My Baby Princess Cinderella" and "Color Change Little Belle" winners of the 2004 iParenting Media Award
• "Disney Princess Halloween Costumes" winner of the 2003/2004 LIMA Soft Goods award
• Disney portable DVD player wins the 2005 National Parenting Publications Awards (NAPPA)
• Disney Smoothie Maker and Disney Popcorn Popper win the 2005 "Excellence in Design" award from International Appliance Manufacturer magazine & 2004 NY Gourmet Housewares Show Best New Product Award





¹Based on sales and data compiled by Disney and/or supplied to Disney by third party licensees unless otherwise noted.

© Disney January 2007