Revenue marginally up, reversing recent trend         Strong on-air performance of key shows         New branded block, volume and package deals	137 episodes of new programming delivered         Significant improvement in programme pipeline with 244 episodes in production, up 102 from September 30, 2004

“Programme distribution revenue has increased for the first time in recent years.”

We achieved this despite a significant reduction in the number of episodes delivered compared with the prior year. There has been a concerted focus on the quality of programmes that we have been producing, and we have begun implementing our long-term strategy of moving from acquired programming to co-productions, in which we have significant ownership and creative influence. The improvement is also due to the global scale and industry relationships which Buena Vista International Television brings to servicing our distribution operation.

The quality of our programming is highlighted by the on-air performance of a number of our key franchises during the year, both old and new. Power Rangers maintained its market leadership position, airing in all five of the major European markets and leading its timeslot with the highest kids ratings in four of them8. On the back of the most recent movie, Spiderman returned as one of our best selling properties, airing in all five major European markets and was the most popular programme with boys in all markets for its timeslot. Our new shows also sold well with W.I.T.C.H. selling in 17 countries and Sonic X selling in 19 countries. In the four major markets where W.I.T.C.H. aired it was number one or two in its timeslot amongst kids and Sonic X was number one for boys in its timeslot in the three major markets in which it aired.

During the period we have sold a new branded block and a number of notable volume and package deals9. A new branded block deal has been signed with Polsat in Poland, which complements the blocks we already have in Germany, Russia, Czech Republic and a number of other emerging markets. New volume deals have been signed in the U.K., Ireland and Belgium; and major package deals have been signed in Italy, Greece, Turkey and Finland amongst others.

We have taken delivery of 137 new episodes during the period. This included the initial season of our first co-production with Disney’s Television Animation unit in the U.S., Super Robot Monkey Team Hyperforce Go!, as well as co-productions with other studios. This year we have received the first seasons of W.I.T.C.H. and A.T.O.M. (Alpha Teens on Machines) from SIP in France, and acquired new series of programming such as Sonic X. We have also received the latest season of our flagship property, Power Rangers.

The number of episodes we have in production has significantly increased to 244, up 102 episodes from September 30, 2004. New productions entered into during the period include both new seasons of our successful properties, Power Rangers, Super Robot Monkey Team Hyperforce Go!, W.I.T.C.H. and A.T.O.M. (Alpha Teens on Machines), as well as new original properties such as Get Ed, Pucca and a new “mystery” live action production. Get Ed is a new coproduction with Disney’s TVA in the U.S., and follows the adventures of Ed, a boy genetically created from an ancient artefact, who works as a surreptitious cybersleuth, foiling identity thefts and other information based crimes whilst toiling at a futuristic messenger service. Pucca has developed from our strong consumer products franchise, and is a kiss-chase meets kung-fu comedy following the exploits of Pucca, the daughter of a Chinese restaurant owner, and Garu, a loyal ninja student. Our new “mystery” live action series will launch next year at MIP TV and is a hybrid between live action and CGI production techniques.

Also in production at the period end was Oban Star-Racers, our 26 episode epic co-production with Sav! the World, Super RTL and France 3. This was recently launched at the MIPCOM TV buying market and has generated significant early interest.