Walt Disney Company (DIS)

      Development of the site continues with the Val d’Europe project, a planned community near Disneyland Resort Paris. The already completed phases of the site include a town center, which consists of a shopping center; a 150-room hotel; office, commercial and residential space; and a regional train station. Third parties operate these developments on land leased or purchased from Euro Disney S.C.A. and its subsidiaries. In September 2003, Euro Disney S.C.A. signed an agreement with the regional development authority to begin the third phase of development. Included in this phase will be an expansion of Disney Village and projects aimed at increasing Val d’Europe’s capacity to welcome new residents.

      In addition, there are several on-site hotels which were opened in 2003 and 2004 that are owned and operated by third party developers that provide approximately 2,080 rooms. Agreements have been signed with additional third party developers to provide approximately 300 additional on-site hotel rooms and/or time share units over the next two years.

      In fiscal 2005, Euro Disney S.C.A. completed a financial restructuring, which provided for an increase in capital and refinancing of its borrowings. Subject to certain deferrals, Euro Disney S.C.A. is required to pay royalties and management fees to certain wholly-owned subsidiaries of The Walt Disney Company based on performance of the operations of the park. Pursuant to the financial restructuring, the Company has agreed to conditionally and unconditionally defer certain management fees and royalties and convert them into long-term subordinated debt. See Note 4 to the Consolidated Financial Statements for further discussion.