(1) Consistent with prior years, EBITDA is stated before programme amortisation, impairment and depreciation. EBITDA less depreciation, amortisation and impairment is equivalent to operating income.

Jetix magazine launched in Spain
Jetix-branded magazines are now in the Netherlands, UK and Spain. These promote the brand, as well as offering another medium for our commercial partners to reach our audience.

Power Rangers goes from strength to strength
DCP has continued to grow Power Rangers, and has been expanding beyond the traditional action figure toys into new categories.

Achievements in 2006

• Strong revenue and profit growth
• Power Rangers continues to grow
• Over 80 licensees for Pucca
• A.T.O.M. strong in home video
• New rights secured

Priorities for 2007

• Develop Ōban Star–Racers
• Continue growing Power Rangers
• Maintain focus on Pucca

Our consumer products division licenses our characters and programmes for use in merchandising and home entertainment. The properties we represent are used in a variety of ways. Toys are a major category‚ but we also publish magazines and our characters appear on numerous products‚ from toiletries to apparel.

Disney Consumer Products (DCP) is the global representative for our Power Rangers brand. Other brands are represented through our in–house consumer products team‚ Jetix Consumer Products (JCP). We represent properties where we own the underlying consumer rights and act as agent for third party properties‚ usually in combination with airing the associated television programming on our channels.

Strategy

We intend to continue pursuing our dual strategy in consumer products with DCP representing Power Rangers and JCP representing our other properties. We benefit from DCP’s global scale and market access for our largest brand. Our smaller brands profit from the dedicated focus which our in–house operation can bring.

We will continue to use our significant investment in flagship programmes to secure consumer products rights. Our channel and programme sales activities bring clear advantages to brand building and consumer recognition for our key franchises; we will capitalise on these. We will aim to secure ownership of consumer products rights‚ rather than acting as an agent‚ where appropriate.

Pucca Licensees

Highlights in 2006

The consumer products division has continued to achieve strong growth. A key factor has been the minimum guaranteed revenue on master toy deals for A.T.O.M. Alpha Teens on Machines and Sonic X .

Power Rangers again performed strongly. Core categories did well and new categories were developed. Power Rangers remains a significant property for DCP‚ and it has benefited from their global support and attention.

JCP’s merchandising activities generated strong performances from Sonic X and Pucca‚ and the Jetix brand has continued to develop well. Pucca now has over 80 licensees in place. We have extended the reach of the Jetix brand in Spain with the launch of a new magazine.

We own global rights to A.T.O.M Alpha Teens on Machines . The property has performed strongly for JCP Home Entertainment‚ selling in over 50 countries.

It is the first time we have been able to license a home entertainment property to the US market.

During the year we secured consumer products rights for Yin Yang Yo!‚ Monster Buster Club and Captain Flamingo. Securing the rights to Yin Yang Yo! is notable as previously DCP represented all consumer products for US–led alliance co–productions. We have also been appointed to represent the rights for the classic Sonic the Hedgehog character‚ following our success with the new Sonic X .

Priorities for 2007

We will continue to pursue our dual strategy. DCP’s global representation of Power Rangers has proved very effective and we anticipate that this property will continue to be successful. Within JCP‚ we will build on the current high levels of interest in Pucca. Our flagship title‚ Ōban Star–Racers ‚ aired in Autumn 2006. It is already generating significant interest from licensees.