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KROGER INTRODUCES DISNEY MAGIC SELECTIONS IN STORES NATIONWIDE

Exclusive Disney Line Featuring “Chef Mickey” and other Favorite Characters Debuts with Food Range Including Assortment of Healthy Items

CINCINNATI, Ohio and BURBANK, Calif., July 25, 2006 – Favorite Disney characters are making their way onto Kroger store shelves nationwide this month. The Kroger Co. (NYSE: KR) and Disney Consumer Products (NYSE: DIS) today announced an exclusive new line of Disney Magic Selections-branded products featuring Disney and Disney·Pixar characters on competitively-priced food, health and beauty items. The first products to launch include a food line offering healthy alternatives. Baby and toddler products, personal care and floral items will launch in 2007.

Approximately 100 food items will launch throughout 2006 with the majority of products giving families fun and healthier alternatives. The line will include items that are inherently healthy such as fresh fruits in kid-size packages, while other product categories such as snacks, meals and popular staple foods will feature numerous items with significantly improved formulations offering controlled levels of calories, fat and sugar. Almost all of the products during the initial launch will contain 0 grams of trans fat and the target is for all Disney Magic Selections-branded food products to meet this goal by the end of 2007.

The initial roll out will include fruits, breakfast foods, cheese and yogurts. Additional food products to be introduced throughout the year include:

  • Character-shaped frozen and canned pasta.
  • Fresh and frozen meals.
  • Cut vegetables with dip.
  • Snacks including granola bars, fruits cups and applesauce.
  • Popular staples such as macaroni and cheese and peanut butter and jelly.

Disney Magic Selections products will be available at more than 2,400 Kroger stores including Ralphs, Fry’s, Fred Meyer, King Soopers, Dillons and other banner supermarkets owned by Kroger around the country.

“This program with Kroger is especially exciting because it combines the leading grocer in the country with the world’s most-popular family entertainment brand to bring an affordable product line to market that kids will enjoy and parents will trust, ” said Harry Dolman, executive vice president of Disney Consumer Products for food, health and beauty. “Disney Magic Selections products are healthy, entertaining choices for the breakfast counter, the lunch box, the dinner table, bath time and beyond.”

The healthy food range will be identified by branding and packaging designed to specifically call out nutritional attributes to parents featuring a Mickey Mouse “thumbs up” logo such as “0 Grams Trans Fat,” “Made with Whole Grains,” and “No Preservatives.” The packaging back panels will feature trivia, games and educational messages about healthy eating and lifestyle. Packaging will also direct kids to a Disney website designed to deliver healthy lifestyle messages, incorporating creative and fun activities in a way only Disney can.

“This is a fun, convenient way for customers to bring the magic of Disney to the child's plate,” said Nick Hahn, director of corporate brands for Kroger. “We look forward to delighting customers with more items in more categories as we work with Disney to integrate this line across our network of stores.”

Signage and aisle displays in Kroger stores will feature the likeness of Mickey Mouse as “Chef Mickey” and “Farmer Mickey” promoting fresh meals and fresh produce.

Kroger launched Disney’s Old Yeller dog food in May 2005 and it quickly became one of the retailer’s top-selling dog food brands.

About Disney Consumer Products

Disney Consumer Products (DCP) is the business segment of The Walt Disney Company (NYSE: DIS) that extends the Disney brand to merchandise ranging from apparel, toys, home décor and books to interactive games, food and beverages, stationery, electronics and animation art. This is accomplished through the work of DCP’s various lines of business: Disney Toys, Disney Softlines, Disney Home, Disney Food, Health & Beauty, Disney Stationery, Disney Publishing, Buena Vista Games, Baby Einstein, the Muppets Holding Company and Disney Shopping, Inc.’s catalog and disneyshopping.com. The Disney Store, which debuted in 1987, also falls under DCP, through stores currently owned and operated by unaffiliated third parties under licensing agreements in North America and Japan, and wholly owned stores in Europe. For more information about DCP, please visit our web site at www.disneyconsumerproducts.com.

About Kroger

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the first quarter of fiscal 2006, the Company operated (either directly or through its subsidiaries) 2,483 supermarkets and multi-department stores in 31 states under two dozen local banners including Kroger and Kroger Marketplace, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s and Smith’s Marketplace, Fry’s and Fry’s Marketplace, Dillons, QFC and City Market. Kroger also operated (either directly or through subsidiaries, franchise agreements, or operating agreements) 783 convenience stores, 423 fine jewelry stores, 593 supermarket fuel centers and 42 food processing plants. For more information about Kroger, please visit our web site at www.kroger.com.


Kroger Contacts:
Media: Meghan Glynn
(513) 762-1304

Disney Consumer Products:
Media: Clint Hayashi
(818) 567-5947

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