The Walt Disney Company Increases Strategic Investment In UTV

Mumbai, and Burbank, Calif. — February 18, 2008 — UTV Software Communications Limited (UTV) and The Walt Disney Company (NYSE: DIS) announced today that Disney’s subsidiary The Walt Disney Company (Southeast Asia) Pte. Ltd. will increase its strategic investment in UTV, subject to UTV shareholder and regulatory approvals. Disney’s investment further establishes its entry into the Indian market through UTV and complements its fast-growing Disney-branded businesses and long-held joint-venture in ESPN STAR Sports. In July 2006, Disney acquired Hungama TV, a leading Indian children’s television channel, and took an initial equity interest in UTV.

“We are pleased with our initial investment in UTV, which has strong local brands and media properties that provide complementary growth platforms to Disney’s existing branded efforts,” said Andy Bird, chairman, Walt Disney International. “The UTV management team is proven and well-respected, and we look forward to continue to work with them.”

Ronnie Screwvala, Chairman and Group CEO of UTV commented, “This partnership across movies, TV content, interactive games and broadcasting endorses our leadership in India and South East Asia and propels our already growing global story. Over the last year we have learned to work well together, and the speed at which this collaborative deal was put together is testament to the strong working relationship we have built.”

With this investment, Disney will be increasing its stake in UTV to 32.1% on a fully diluted share capital basis. Disney’s investment is worth approximately USD 200 million. Ronnie Screwvala and certain entities with which he is affiliated (the “Promoter Group”) will be increasing their shareholding in UTV to 32.1% through issue of warrants. Disney’s investment will be made through a preferential allotment of new UTV shares. In addition, Disney will make an open tender offer to the UTV shareholders as required under Indian securities regulations and detailed in a Public Announcement to be made to UTV shareholders.

Concurrently with its UTV investment, Disney will invest approximately USD 30 million for a 15% stake in UTV Global Broadcasting Limited (“UGBL”). UGBL, through its subsidiaries, has launched two youth entertainment channels under the Bindass brand and The World Movie channel, and is about to launch UTV Hindi Movies channel. UTV will also invest USD 60 million in UGBL for a 75% stake, while the remaining shares will continue to be held by the Promoter Group.

Disney in India
The Walt Disney Company (India) opened in July 2004 with its head office located in Mumbai. In less than three years, it established a strong foothold in this diverse and highly dynamic market. Disney India employs around 185 permanent staff, and anticipates accelerated growth across Media Networks, Consumer Products, and Studio businesses.

Outside of the US, India is the largest market Disney has invested in for local production. Disney Channel and Jetix have over 6000 episodes of trans-created content (3 local languages included). Disney Channel India has close to 25% local content on-air today. In July 2006, Disney acquired Hungama TV, a 24-hour Hindi language and top rated Indian children’s television channel. Disney Channel and Toon Disney have a current reach of over 49 million homes. In 2006-07, the channels won 21 awards including Disney Channel’s win as Best Children’s Channel (second year in a row) at the Indian Television Academy awards, which is based on audience polls. Through the terrestrial network, Disney Channel reaches over 122 million homes.

Walt Disney Internet Group has made available a wide variety of Disney-branded mobile entertainment via the country’s top carriers, reaching more than 84 million mobile phone subscribers and representing more than 60 percent of India’s mobile market and 85 percent of the data market. WDIG also provides games with local flavor e.g. Disney Cricket, Mickey Mouse Rickshaw Rush, and other games which are tailor-made content for Indian tastes.

In June 2007, Walt Disney Studios Motion Pictures (India) announced a historic collaboration with Bollywood’s leading studio – Yash Raj Studios to make animated films created by and for Indians. The first film with Yash Raj, to be released in summer this year is entitled “Roadside Romeo,” which features the voices of leading Bollywood stars. The popularity of Disney content among Indian families can also be gauged by the successes of The Lion King, Narnia, Incredibles and Pirates of the Caribbean 2 as the highest selling DVDs of all time in India.

In the last two years, Disney Consumer Products has more than doubled the number of licensee relationships and established new retail relationships which are delivering consumers a broad range of products. DCP is showing significant momentum as it focuses on broadening its geographic reach by expanding product reach beyond key cities through existing licensees, focusing on ‘direct to retail’ relationships, and developing innovative specialty stores and special Disney Corners (shop in shop).

About The Walt Disney Company
The Walt Disney Company (NYSE:DIS), together with its subsidiaries and affiliates, is a leading diversified international family entertainment and media enterprise with four business segments: media networks, parks and resorts, studio entertainment and consumer products. Disney is a Dow 30 company, had annual revenues of more than $35 billion in its most recent fiscal year, and a market capitalization of more than $61 billion as of February 15, 2008.

UTV Software Communications Limited, popularly known as UTV, is India’s foremost integrated Media & Entertainment Company with leadership position in 4 verticals that include Movies, TV Content, Interactive (Animation & Gaming) and Broadcasting.

Listed on India’s premier stock exchange, The Bombay Stock Exchange, UTV is India’s only integrated media and entertainment company with content creation abilities across platforms and genres. It has subsidiaries with offices across India, Mauritius, UK and USA. More information on the group is available at: