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Monday, 01/27/2003


Company Description

The Walt Disney Company is a diversified worldwide entertainment company with operations in four business segments: Media Networks, Parks & Resorts, Studio Entertainment and Consumer Products. Media Networks is comprised of the ABC Television Network, which, as of September 30, 2001, consisted 226 primary affiliated stations; and the ABC Radio Networks, which consist of more than 8,900 program affiliations on more than 4,600 radio stations. Parks & Resorts is comprised of the Walt Disney World Resort and Disney Cruise Line in Florida, the Disneyland Resort in California, ESPN Zone facilities in several states and Anaheim Sports in California. The Studio Entertainment segment produces live-action and animated motion pictures, television animation programs, musical recordings and live stage plays. The Consumer Products segment licenses the Company's characters and other intellectual property to consumer manufacturers, retailers, show promoters and publishers throughout the world

Reasons to Invest

In order to manage successfully through the challenges that 2002 presented, Disney remained focused on growing the strength of its brands and share of market and on delivering outstanding creative content within an appropriate financial framework.1 Despite the economic downturn, 2002 represented a positive turning point for Disney, marking both the end of a five-year period of aggressive capital investment in theme parks and the point when longstanding efforts to strengthen key business segments, including Studio Entertainment and Consumer Products, began to bear fruit. The company's efforts to rationalize its cost base, coupled with a focus on the creation of shareholder value, also established 2002 as the starting point for the next phase of Disney's growth. As the economy rebounds, management believes that the company is in a strong position to deliver growing earnings and cash flow as well as steady increases in capital returns. In fact, the company expects to deliver earnings growth for 2003 that is 25-35 percent above the $0.53 posted in fiscal 2002.

Dividend Reinvestment Program

Disney does have a dividend reinvestment plan, and it is also open to international investors. However, you will need a minimum of 10 shares to participate. Those with fewer shares, such as your son, have several options. They could buy more from a broker or purchase stock through the company's direct-share purchase program. Unfortunately, there is a $1,000 minimum for that program, unless you authorize monthly deductions from a bank account (which would have to belong the Automated Clearing House system in the United States), in which case the minimum deduction is $100

The dividend-reinvestment plan and the direct-share purchase plan are parts of the same program. It costs $10 to enroll, and then there are some additional fees. The dividends are reinvested at a cost of 3 cents per share. For other purchases, if you pay by check, there is a $5 charge per transaction, plus 3 cents per share purchased; if you set up an automatic deduction plan from a bank, the charge falls to $1, plus 3 cents per share. It costs $10, plus 3 cents per share, to sell stock held in the plan, and there is a $20 fee for a bounced check. Brokers are not involved in dividend-reinvestment plans. Usually, a bank is hired to administer most of the workings of the program, but Disney acts as its own transfer agent.

For further information: 
WALT DISNEY CO. For information on the company's 
dividend-reinvestment and direct-purchase plans call:
1 818 553 7200.

DRIP Information:

Shares to Qualify = 1
Enroll charge: $10 to enroll          
Auto-reinvestment = yes
Min/Max = $1000 (unless automatic bank withdrawal - then $100)

Reinvestment Fees -

Dividend investment fees: .03 cents per share
Cash investment fees: $5 plus 0.3 cents per share
Auto reinvestment fees: $1 plus .03 cents per share

To sell shares in the Plan: $10 plus 0.3 cents per share
* $20 check charge for bounced check.


Copyright 2003

Do not duplicate or redistribute in any form.
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