LPWire: Roy E. Disney Announces a "Variable Prepaid Forward'' Transaction

Roy E. Disney Announces a "Variable Prepaid Forward'' Transaction

Roy E. Disney announced today that a family trust he established has entered into a "Variable Prepaid Forward" ("VPF") transaction with Credit Suisse First Boston. The VPF transaction is essentially a forward sale of a portion of the shares in The Walt Disney Company held by the family trust.

Mr. Disney selected a VPF transaction to demonstrate his continued commitment to the inherent value in The Walt Disney Company while permitting the family trust to diversify its investment portfolio and to monetize a portion of its ownership in the Company to meet other investment objectives.

The VPF will provide the Disney family trust beneficiaries with the ability to benefit in future upside appreciation, up to an agreed amount, in the Company's share price over the next five years, while also providing them with protection against decreases in the Company's share value during the same period. Under certain circumstances, the Disney family trust may elect to retain its shares in the Company and settle the VPF contract with cash.

Mr. Disney, who is Vice Chairman of The Walt Disney Company and Chairman of Shamrock Holdings, Inc., said he "wanted to emphasize his continued dedication to the Company."

The total number of shares covered by this transaction is approximately 7.5 million. Following the transaction, Mr. Disney and his family will continue to be among the largest shareholders in the Company.

As required by federal securities laws, Mr. Disney has filed a Form 144 and is filing a Form 4 in connection with the VPF.

--Posted August 21, 2003
Source: Shamrock Holdings, Inc.