All of the channels have been renamed as Jetix         Channel subscribers increase by 3.5 million to 41.8 million households         Channels broadcasting in 58 countries via 15 channel feeds in 18 languages         Key channel distribution deals renewed	Strong advertising growth in most markets         Launch of new channel franchise in Italy – GXT         New media trials underway on mobile and ADSL VoD

“During the year the key focus for the channels and online division has been the renaming to Jetix.”

The renaming began in the prior financial year with our French channel in August, and since then the rest of our feeds have changed to Jetix. The majority transitioned in January, with our German channel being the last to change in June 2005. We supported the renaming with a wide range of marketing activities, from special launches to Jetix branded touring events, all supported by major on-air and online campaigns.

The new brand has become firmly established with our audiences, and has also built a strong presence with
our commercial partners. The transition highlighted the successful overall strategy we pursued, with the initial launch of branded blocks to introduce our audiences to the new name, followed by the rolling out of the change across our whole channel network.

The channels have continued to expand their distribution during the year and at the year end we reached 41.8 million households, up 3.5 million households. This has maintained our position as one of the leading kids’ television channels across Europe and as at September 30, 2005, we reached 58 countries, through 15 channel feeds broadcasting in 18 languages.

During the year we have renewed key deals with pay-tv platforms, securing distribution of our channels into the
future. Key deals renewed were with Sky Italia in Italy, NTL and Telewest in the U.K., Sogecable in Spain and a number of deals in Eastern Europe.

Advertising revenue has grown at more than 15% in all of our markets except the U.K. and the Netherlands. On two of our channels, Central and Eastern Europe and Poland, advertising more than doubled, whilst in the U.K. and the Netherlands advertising was broadly in line with last year. In the Netherlands we have defended our market leading position against a strong new market entrant, and in the U.K., our most competitive market, we maintained our position.

In May 2005 we launched a new channel brand in Italy, GXT. GXT targets an older “teen” audience with a mix of irreverent humour and edgy programming. To date, the channel has performed strongly and has significantly improved our demographic reach, opening up the opportunity to develop new advertising clients. We are hopeful that this format will have significant potential in the future.

During the period the market for digital media has continued to develop rapidly. We are working with a number of partners to trial new services and to ensure we are present wherever new opportunities are emerging. In France we have two deals in place to distribute our channel over mobile phones. Trials with Orange and SFR began in June and early performance has been positive. In Germany we secured carriage within T-Online’s video on demand ADSL service which distributes some of our most popular library shows, and in the UK our channel is being carried on the Homechoice ADSL service.