With regard to The Disney Store Japan, our basic growth strategy consists of opening new stores centered on the seven major urban regions in Japan and introducing e-commerce as a new marketing strategy.
In the first half of the fiscal year ending March 2005, we opened the Canal City Hakata Store in Fukuoka Prefecture in June, followed by two more in Hyogo Prefecture through October and November 2004. The total number of stores including these three has reached 50. We will continue to strategically develop The Disney Store Japan, in light of supply and demand conditions.
In addition, we began selling merchandise of The Disney Store Japan through the Disney Mall, the official Disney shopping Web site, starting in July 2004. Sales have maintained the projected pace, and we intend to further bolster the site as a new alternative marketing channel.

Disney's official shopping site "Disney Mall" (URL: www.disney.co.jp/store/)

Preparations are now underway for the OLC Group's directly managed Palm & Fountain Terrace Hotel to open on February 25, 2005.
The average rate per guest room at the Palm & Fountain Terrace Hotel is approximately ¥20,000 for up to four people. As a member of the Tokyo Disney Resort Partner Hotels, our new alliance hotel program, the hotel will provide services and plans that take advantage of its location, only 15 minutes by shuttle bus from Tokyo Disney Resort.

OLC/Rights Entertainment (Japan) Inc., which develops intellectual property rights businesses, began satellite broadcasting in October of "Nepos Kids' Club," featuring original characters from "Nepos Napos" as a new television program for children. Under the keyword of "imagination," the goal of the program is to spark an inquisitive spirit in children, as well as to raise the recognition level of "Nepos Napos."
Furthermore, we obtained the broadcast rights and other rights in Japan of "bruno," a new character from Canada, as one of our new overseas characters.
Looking ahead, we plan to develop media exposure centered on existing content while at the same time aggressively promoting the acquisition of new content.