With regard to business performance for the fiscal year ending March 31, 2007, we expect consolidated revenues to rise 4.3% from the previous fiscal year to ¥347,140 million. The following is a breakdown of this outlook by segment and the reasons behind it.

We project revenues for the Theme Park Segment to rise 4.0% to ¥287,450 million. At Tokyo DisneySea, we will hold "Tokyo DisneySea 5th Anniversary" for approximately ten months beginning in July. In addition, the new attraction "Tower of Terror" will open on September 4. At Tokyo Disneyland, we will aggressively launch events such as 'Lilo and Stitch's Big Panic-"Find Stitch!"' throughout the year. Through implementation of these measures, total attendance at the two theme parks is projected to be 25.5 million guests for the full fiscal year, and increase of 734 thousand compared to the fiscal year ended March 31, 2006. Revenues per guest are projected to increase by ¥150 to ¥9,370 due to factors including the revision in ticket price that is scheduled to come into effect from September 2006.

At Tokyo DisneySea Hotel MiraCosta, we will continue to aim for high occupancy rates and revenues per guest room by capitalizing on its qualities as a hotel combined with a theme park. In response to customer requests, in April 2006 we opened new rooms with balconies from which guests can enjoy the view of Tokyo DisneySea. Moreover, to mark the fifth anniversary of the start of operations, we will offer events connected with "Tokyo DisneySea 5th Anniversary."

We project revenues in the Commercial Facilities Segment to increase 2.3% to ¥23,280 million.

At IKSPIARI we will offer a new way for guests to enjoy the IKSPIARI and conduct exclusive events. At the Disney Ambassador Hotel, we will continue to target high occupancy rates and revenues per guest room by capitalizing on its qualities as a Disney hotel. We will continue the special program "Tokyo DisneySea Early Entry," which was favorably received last year. We will also offer special menus linked to special events at Tokyo Disneyland at hotel restaurants, in addition to programs held exclusively for overnight guests.

We project revenues in the Retail Business Segment to increase 5.6% to ¥22,670 million.

At Disney Stores, we opened the Kinshicho Olinas Store in April. We will strengthen sales activities by stimulating demand with gifts linked to occasions such as Christmas and St. Valentine's Day. Moreover, we will enhance products for adults in our target group of female office workers and college students, and use the "Fantamiliar" members program to further narrow our targets and develop products tailored to their needs.

We project revenues in the Other Business Segment to increase 11.1% to ¥13,740 million.

In the hotel business, we will strive to further expand recognition and conduct detailed marketing activities to attract more guests to the Palm & Fountain Terrace Hotel while strengthening sales activities that would include stimulating more group travel, such as overseas guests, school excursions and corporate training events. In Group businesses other than the hotel business, the focus will be on leveraging Group synergies to enhance management efficiency.

Consolidated operating income is projected to increase 1.1% to ¥30,930 million.

While revenues are projected to increase 4.3% compared with the fiscal year ended March 31, 2006, cost of revenues and selling, general and administrative expenses are expected to rise 4.7% and 3.6%, respectively.

Cost of revenues is expected to increase due to expenses related to personnel, relocation of the call center and the "Tokyo DisneySea 5th Anniversary." Selling, general and administrative expenses are expected to increase due to factors including costs of fill year implementation of the membership system for Disney Stores and promotional expenses related to "Tokyo DisneySea 5th Anniversary."

Consolidated net income is projected to increase 0.5% to ¥15,790 million.