Late in 1997, Buena Vista Internet Group was formed to consolidate and coordinate the company's wide-ranging Internet initiatives.

BVIG's short-term mission is to build on the success of the company's existing web sites, such as Disney.com, ESPN.com and ABCNEWS.com. Longer range, the group's ambitious goal is to make The Walt Disney Company a prominent force in the new media of the 21st century.

Buena Vista Internet Group has been moving effectively on both tracks. Most dramatically, thanks to the company's 43 percent strategic investment in Infoseek, BVIG was able to announce the creation of the Go Network™ (www.go.com). The Go Network seeks to be one of the leading portals on the Internet, serving as an interactive hub through which people can gain access to the Internet at large, as well as every form of information and entertainment that Disney offers.

The strength of Disney's industry-leading web sites and Infoseek's search engine enabled the Go Network, at the moment of its preview launch in December, immediately to have one of the largest unduplicated reaches on the Internet. But what most sets the Go Network apart is the richness of its content. Like other portals, Go will offer the ability to quickly and efficiently access the best content and services on the Internet. Beyond that, it will comprise a distinct interactive network that utilizes Disney's original content, creative expertise and marketing strengths to create an attractive and effective home base for millions of Internet users.

The Go Network will be the company's Internet entryway, providing access to the array of sites that have been developed within BVIG's four distinct areas: (1) kids and family, (2) news, (3) sports and (4) entertainment.

Within the kids and family umbrella is the company's flagship web site, Disney.com, which was launched in 1996 and has grown to be the clear leader in its category. Separate sites that also sail under the Disney.com colors include Walt Disney World, Disneyland, Disney Channel, Radio Disney, Walt Disney Pictures, Disney Interactive and Walt Disney Records.

Also serving kids and families is Family.com, which, in just two years, has become the premier online information resource for parents. It combines top-quality content, localized calendar listings of family-oriented activities and bulletin boards that encourage parents to share ideas and experiences with one another.

The Disney Store Online (http://store.disney.com) offers thousands of Disney-themed gifts and specialties from home videos to clothing to collectibles. Even though the Disney Store Online is still in its infancy, it already has amassed monthly sales equal to eight "brick and mortar" stores.

An extremely valuable service for kids and families is Disney's Internet Guide (www.dig.com), which was introduced in June as an effective Internet search and directory tool that emphasizes family lifestyles and interests.

BVIG's sports offerings start with ESPN.com, the number-one sports site on the web, paralleling ESPN's sports prominence on television. ESPN.com embraces the official sites for the National Football League (NFL.com), the National Basketball Assn. (NBA.com), NASCAR (NASCAR.com) and the Women's National Basketball Assn. (WNBA.com). In addition to being the source of up-to-the-minute scores and stats, ESPN.com offers unique interactive features, multimedia, live chats with players, exclusive analysis by ESPN experts and an array of fantasy sports leagues. What's more, sports fans can order all manner of sports-related merchandise at the ESPN Store Online (http://store.espn.com).

ABCNEWS.com leads off the news category and includes such featured sites as Mr. Showbiz.com, an in-depth and irreverent source of entertainment news, and WallofSound.com, which covers the worlds of rock and pop music. Building on the popularity and reputation of ABC News, ABCNEWS.com is now the fastest-growing news site on the web, having more than doubled its reach from September 1997 to September 1998.

The entertainment segment is led by ABC.com. Last year, in an exciting demonstration of the potential of the television and Internet experiences to complement each other, an all-time high of 20,000 fans simultaneously chatted with cast members at the end-of-season "TGIF Wrap Party." During the party, the online audience grew on average by more than 100 people a second. ABC.com also served as the official web site for the 78th Miss America Pageant (www.abc.com/missamerica), offering users the ability to participate in online judging. Among ABC.com's other affiliated sites are Oscar.com, which recorded more than 5.2 million page views the night of the Academy Awards, and Oprah.com, which enables the legendary Oprah Winfrey to extend her reach to cyberspace, in the spirit of her "Change Your Life TV."

The true potential of the Internet has barely been tapped. With Buena Vista Internet Group in place, The Walt Disney Company is now uniquely positioned to make the most of this extraordinary new electronic avenue to entertainment, news, information and commerce.

As its name states, Disney Regional Entertainment was established to bring Disney entertainment to regions across the country and, eventually, around the world. To fulfill this mandate, Disney Regional Entertainment has created three completely new entertainment venues to appeal to guests of all ages.

First, there's Club Disney, where children can star in the Fantasy Fashion Show dressed as their favorite Disney characters, create a "mousterpiece" in the Character Creations art studio, bounce like Tigger in Pooh 'N You or eat a Mickey Pizza in the Club Cafe. Private birthday parties are a specialty. Club Disney now operates in two locations near Los Angeles — in Thousand Oaks and West Covina, California. Openings are planned for early 1999 in Chandler and Glendale, Arizona, and in Lone Tree, Colorado, outside of Denver.

Then there's ESPNZone. Want the best seat in the house to watch "the game" on a 16-foot TV monitor? How about a live ESPN telecast from behind the scenes while you dine at the SportsCenter studio set? Or do you want to tackle the latest in active and interactive sports games? Then you've come to the right place. ESPNZone is a sports-themed dining and entertainment facility that captures ESPN's culture, broadcasting prominence and wry humor. Nearly the size of a football field, ESPNZone comprises the Studio Grill, the Screening Room and the Sports Arena. The first ESPNZone opened in Baltimore's Inner Harbor last summer and has regularly played host to capacity crowds ever since. Locations in Chicago and New York's Times Square will open this summer.

The third Disney Regional Entertainment concept is DisneyQuest, a place that combines the best of Disney storytelling with the latest in innovation and technology to create interactive entertainment for the entire family. At DisneyQuest, guests can shoot the rapids through a prehistoric world on the Virtual Jungle Cruise, ride a roller coaster of their own design on CyberSpace Mountain or fly a magic carpet through the bazaars and alleyways of Agrabah on Aladdin's Magic Carpet Ride. Adventurers can enjoy a respite in two areas: the Wonderland Cafe (desserts and drinks) and FoodQuest (salads, sandwiches and pizza). The first DisneyQuest has begun operation in Downtown Disney at Walt Disney World. A second site will open in Chicago this summer, to be followed by a DisneyQuest in Philadelphia.

Club Disney, ESPNZone and DisneyQuest have all been extremely well received in the regions where they've opened. Quite possibly, one of these distinct entertainment centers will be coming to your city sometime in the next decade.