The case was filed on behalf of all persons who purchased Disney common stock (the "Class") during the period August 15, 1997 through May 15, 2002, inclusive (the "Class Period").

The Complaint charges defendants with violations of federal securities laws. Among other things, plaintiff claims that during the Class Period, defendants failed to disclose the material facts concerning the existence, details, and potential effects of a pending lawsuit over merchandising rights concerning "Winnie the Pooh." Those effects include Disney's potential payout of hundreds of millions of dollars in royalties as well as the much more serious threat of possible termination of the Company's merchandising agreement for Pooh products which represents several billion dollars a year in revenue. On May 15, 2002, defendants belatedly disclosed the amount of the claims involved and the potential fallout from the litigation. As various media sources gradually reported this news, Disney's stock price fell, declining 28% in the two months after the disclosure.

Plaintiff seeks to recover damages suffered by class members and is represented by the law firm of Shapiro Haber & Urmy LLP, which has successfully prosecuted numerous securities class actions on behalf of defrauded investors. More information about the firm and its qualifications is available on the firm's website at www.shulaw.com.

If you are a member of the Class described above, you may wish to join the action. You may move the court to serve as a lead plaintiff no later than October 15, 2002.

If you would like a copy of the complaint, would like to discuss joining this action as a lead plaintiff, or would like to inform us that you are a member of the proposed class, please contact Ted Hess-Mahan, Esq. or Liz Hutton, paralegal, Shapiro Haber & Urmy LLP, 75 State Street, Boston, MA 02109, (800) 287-8119, fax at (617) 439-0134, or e-mail at [email protected].