Roy Disney and Stan Gold Press Release

Roy Disney, Stan Gold Invite Shareholders to SaveDisney.com Philadelphia Briefing on Day Before Walt Disney Company Annual Meeting

BURBANK, Calif., Feb 5, 2004 /PRNewswire via COMTEX/ -- Roy E. Disney and Stanley P. Gold invited shareholders of The Walt Disney Company to a SaveDisney.com briefing and reception in Philadelphia on March 2, the day before Disney's Annual Meeting is to be held in that city. The SaveDisney.com meeting will be held at the Loews Hotel, 1200 Market Street, from 4 p.m. to 6 p.m. A press briefing is being scheduled for earlier that day.

In a letter to shareholders posted on their website, the two former Disney Company directors said they intend to tell shareholders why they should Vote No on the election of Michael Eisner, George Mitchell, John Bryson and Judith Estrin as Disney Directors. Messrs. Disney and Gold also said they would tell shareholders why they resigned from the Disney Board and why they are seeking to replace Michael Eisner as the company's CEO.

"It is our belief that the more Disney shareholders know the more likely they are to support our position," Messrs. Disney and Gold said in their letter.

"We think it is important that the facts be put in perspective. For example:

-- "In 1994, Disney's operating income was $3.1 billion. Despite
investing more than $25 billion in Company operations since, Disney's
operating income in fiscal year 2003 was only $3.2 billion.
-- "Assuming the Company achieves its forecasts for Fiscal 2004, earnings
will only approximate those achieved 6 years ago.
-- "In 1995, the market showed confidence in the Disney name and rewarded
the company with an average price-to-book ratio of nearly 6x. In
2003, Disney's average price-to-book ratio was under 2.0x.
-- "While Disney stock has had a good recovery recently, $10,000 invested
on January 1, 1996 would have grown to only $11,497 by December 31,
2003. This same amount, $10,000, invested in a Dow Jones index fund
on January 1, 1996, would have grown to $20,191 by December 31, 2003.


"There is much more we intend to share with you including our thoughts concerning the Company's serious governance deficiencies and the actions we believe need to be taken to correct these deficiencies," they said.

"But as much as we have to share with you, we do not intend to have this meeting be a monologue. We are anxious to meet you and hear your views. We look forward to your questions and comments," the letter continued.

"To assist you in attending the meeting, we have secured special discount travel arrangements specifically for Disney Shareholders from cities across the nation.

"We have every expectation that you will see a lot of glitz and razzle-dazzle at Disney's annual meeting. Unfortunately, in our view that has been the modus operandi of the Company in recent years: a lot of fluff and not enough substance. We believe the company's shareholders deserve the facts without the spin. You will get the facts at our meeting on the 2nd," Messrs. Disney and Gold continued.

"We look forward to seeing you in Philadelphia," the letter concluded.

I believe this will be the indicator as to what kind of mindset the shareholders have regarding Eisner. Big numbers mean big trouble for Mikey.

Let's pass the word and keep the faith. Go Roy!

-Demigod

Will there be food at the party? ;-) (I'll fwap myself for that one. ;-) )

Seriously: This sniping between Steve Jobs at Pixar and Disney, about Michael Eisner. the news of this meeting announced, other stuff this same week... Events are moving fast now. Did you hear of the conference Disney will do Feb. 11 and 12 when they announce their own quarterly results. It's a press release on PRNewswire on CBS Marketwatch.com within the last day or two. Michael Eisner will speak. Also there is a conference going on soon at which Roy Disney will speak at a proxy organization of some sort to tell why he's urging Disney shareholders to vote their proxies such and such a way. As I write this it's "only" 27 days before the Disney Stockholders' Annual Meeting. Events are moving quickly now and on several sides you see emotions running high, to say the least.

All of us, though, however hard it may be, need to try to stay emotionally flat and calm through this. It's hard and passionate now, but in a few weeks will be more so. Stay the course, locate the Maalox and appropriate comfort foods, and stock up. ;-)

I hope that the larger shareholders go. We puny 100- or 1000-shares holders really don't carry weight at the Annual Meeting.

Remember, there are 2 billion, or 2,000,000,000, shares outstanding.

A short list, the heads of:
Barclays Bank (69 million shares)
State Street Corporation (63 million)
FMR corp
Citigroup
Southeastern Asset Management
State Farm Mutual Auto Insurance
Vanguard Group
Lord Abbett & Co.
Morgan Stanley
Mellon Bank.

That's 474 million shares or about 24% of the shares. Whoever controls the investment areas of these companies needs to be informed.
Now, you must know that these people care only about one thing: stock price and dividends. Most everything in this side meeting will be about claims of future demise. If I were highly qualified to attend this meeting, I would want to see a chart of the future costs for each failure being claimed. "DCA is a failure." OK, show me, in net income, how. "Pixar non-partnership is a failure." OK, show me how. "WDS-P is a failure." "Direct-to-Video sequels are a failure." "Fox Family." "ABC." Etc.
With each of these failures, they should include the erodement of the Disney brand name as part of it. And, that Eisner is responsible for it all.
Either they'll believe or they won't. If they believe, either they'll vote against Eisner and cronies, or they'll sell their shares. A few of these guys selling their shares would be a big deal to the others, whose stock value will drop.
If they don't believe, then nothing happens, except possibly the demise of Disney in a few years.

How can we all help? I can only suggest slowing down the purchasing of Disney products and services. ('cause it would be impossible for most of us to stop cold turkey.) Disney's success is based on our buying Disney stuff, inferior or otherwise. Cut back on the crap. Don't rent a hotel room at list price. Don't renew your AP automatically -- wait a few weeks (or just days). Don't visit Animal Kingdom if you think you've seen it all. Don't buy stuff at The Disney Stores if there's nothing you need. Don't buy Disney clothes at WalMart if it's not up to snuff.