Walt Disney Company (DIS)

CUSIP #254687AU0

NOTICE IS HEREBY GIVEN THAT, pursuant to the terms of the Indenture dated as of September 24, 2001 between The Walt Disney Company (the “Company”) and Wells Fargo Bank, N.A. (the “Trustee”), and in accordance with the redemption provisions of the Notes, all of the Company’s outstanding 2.125% Convertible Senior Notes due 2023 (the “Notes”) have been called for redemption at the option of the Company on April 15, 2008 (the “Redemption Date”) at 100% of the principal amount thereof (the “Redemption Price”). Regular accrued interest at the current coupon rate of 2.125% per annum to the Redemption Date will be paid in the usual manner.

The Notes will become due and payable on the Redemption Date and interest thereon will cease to accrue on and after the Redemption Date. Payment of the Redemption Price, subject to receipt of the required funds, will be made on or after the Redemption Date to the holders of Notes upon presentation and surrender of such Notes at the office of the Trustee as follows:

In lieu of surrendering the Notes to the Trustee for redemption, holders of the Notes may elect to convert the Notes or any portion thereof which is $1,000 or an integral multiple of $1,000, into shares of Common Stock, par value $0.01 per share (the “Common Stock”) of the Company at a conversion rate equal to 33.9443 shares of Common Stock per $1,000 principal amount of Notes (equivalent to a conversion price of $29.46 per share). Cash will be paid in lieu of fractional shares. This conversion right will terminate at the close of business on April 11, 2008. Wells Fargo Bank, N.A., will serve as conversion agent for the conversion (the “Conversion Agent”).