Walt Disney Company (DIS)

Domestic Resorts

Operating results at both Walt Disney World Resort and Disneyland Resort reflected decreased attendance due to the shift of the Easter holiday. This was more than offset by higher corporate alliance income and increased guest spending at Walt Disney World Resort driven by higher average ticket prices.

Domestic Resorts

Operating income growth at the domestic businesses was primarily due to increased guest spending and theme park attendance at the Walt Disney World Resort and higher revenues at Disney Vacation Club, partially offset by higher operating costs at the Walt Disney World Resort. Increased guest spending was due to higher average daily hotel room rates, higher average ticket prices and increased food and beverage spending. Higher attendance was primarily driven by the benefit of the shift of the Easter holiday. The increase in operating costs was driven by labor cost inflation, new guest offerings and volume-related expenses. The benefit from higher revenues at Disney Vacation Club reflected extensions of the term of ownership on certain existing vacation home properties and higher rentals of vacation club units.

Domestic Resorts

Operating income growth at Walt Disney World was primarily due to increased guest spending, attendance, vacation club ownership sales and hotel occupancy, partially offset by higher operating costs. Increased guest spending was due to higher average ticket prices and increased food, beverage and merchandise spending. Higher operating costs were driven by volume-related costs, labor cost inflation and new guest offerings.

Domestic Resorts

For the year, operating income growth at Walt Disney World was due to increased guest spending and theme park attendance, partially offset by higher operating costs. Increased guest spending was due to increased food, beverage and merchandise spending, higher average ticket prices and higher average daily room rates. Higher operating costs were driven by volume-related costs, labor cost inflation and new guest offerings, partially offset by lower pension and postretirement medical expense. Operating income growth at Disneyland Resort was due to increased guest spending primarily due to higher average ticket prices.

For the quarter, operating income growth at Walt Disney World was driven by increased theme park attendance and higher guest spending, partially offset by higher operating costs. Higher guest spending was primarily due to increased food, beverage and merchandise spending. The increase in operating costs was driven by volume-related costs, new guest offerings and labor cost inflation, partially offset by lower pension and postretirement medical expense. At Disneyland Resort, operating income growth was due to increased guest spending primarily due to higher average ticket prices.

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Domestic Resorts

For the year, operating income growth at our domestic resorts was due to increased guest spending, theme park attendance, and hotel occupancy, as well as higher sales at Disney Vacation Club. This growth was partially offset by higher operating expenses, driven by increased volume-related costs and costs associated with new guest offerings and attractions.

For the quarter, operating income growth at Walt Disney World was driven by increased guest spending, theme park attendance, and hotel occupancy. Higher guest spending was driven by higher average daily room rates and higher average ticket prices. The increase in theme park attendance was led by Disney’s Animal Kingdom where we opened the new attraction Expedition Everest in April 2006. These increases were partially offset by higher operating expenses driven by increased volume-related

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costs and costs associated with new guest offerings and attractions. At Disneyland Resort, operating income was comparable with the prior-year quarter, as both quarters benefited from the success of the 50^th anniversary celebration.