Disney buys into toysmart.com

Disney's Buena Vista Internet Group Takes Majority Stake in toysmart.com

August 25, 1999

The Walt Disney Company's Buena Vista Internet Group (BVIG) has taken a controlling interest in toysmart.com, a growing online toy retailer.

toysmart.com is a leader in what the American Specialty Toy Retailing Association refers to as the "good toy" market, which focuses on high-quality and durable toys that nurture children's imaginations.

The announcement was made today by David Lord, president and CEO of toysmart.com and Chuck Davis, president of eCommerce at BVIG.

"toysmart.com and BVIG believe that high quality, educational toys represent an exciting business opportunity in a fast-growing market segment," said Davis. "Our investment in toysmart.com strengthens our commitment to serving the online commerce needs of families."

Said Lord, "By aligning with BVIG and The Walt Disney Company, toysmart.com will be able to aggressively develop this emerging online toy segment. It will help us fulfill our mission of becoming the online champion of increased learning through play with better toys."

Examples of toys offered by toysmart.com include puzzles, building blocks, arts and crafts and other products that encourage children to learn and be creative while having fun.

Under the agreement, BVIG will hold three of five seats on the toysmart.com board of directors and also will provide marketing support to help build the toysmart.com brand and provide distribution across BVIG's various online properties, including Family.com.

About toysmart.com

toysmart.com celebrates the joys of childhood, parenting and learning through play. The company believes that learning is an interactive process enriched through the use of toys that inspire, enlighten and endure in a child's mind. In the spirit of toys, the company is steadily building a community among family, educators and caregivers to become the online champion of better toys and better parenting. An award-winning eCommerce retailer, based in Waltham, Mass., toysmart.com offers thousands of toys and learning tools through its interactive Web site. For more information, visit www.toysmart.com or call 781/663-2700.

About Buena Vista Internet Group

Disney's Buena Vista Internet Group is responsible for creating and operating a broad array of family, entertainment, news and sports Web sites, including Disney.com, the top-ranking kids and family site; Family.com, the Web's premier parenting resource; ABC.com, the number one TV network Web site; ABCNEWS.com, the fastest growing news site online; and ESPN.com, the Web's most popular sports site. Buena Vista Internet Group recently reached an agreement with Infoseek Corporation to create a new Internet business called go.com.

Management believes certain statements in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from those expressed or implied.