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DISNEY TO END QUEEN MARY LEASE

 DISNEY TO END QUEEN MARY LEASE
 BURBANK, Calif., March 6 /PRNewswire/ -- WCO Port Properties Ltd., a


subsidiary of The Walt Disney Co. (NYSE: DIS), today advised the City and Port of Long Beach that it will end its lease for the operation of the Queen Mary and the Spruce Goose.
 Disney acquired the lease in connection with its purchase of the Wrather Corp. in 1988 along with other assets of the company, including The Disneyland Hotel.
 Under terms of the lease, Disney has a one-time option to terminate on or before March 18, 1992. If Disney did not exercise its option, the lease would have continued for 55 years, through the year 2047.
 The company said it will continue to operate the attraction at its expense until Sept. 30, 1992. Disney has also offered its assistance through a transition period beyond the Sept. 30 termination during which the Port might seek another operator.
 Disney said it will release its development rights, enabling the City and Port to consider alternative uses for the Queensway Bay area.
 The company said, in a statement:
 The Queen Mary has not been a profitable operation as a tourist attraction and has proved to be a less than viable investment.
 Disney has invested millions of dollars in an effort to create an environment that would enable the Queen Mary and Spruce Goose to compete in the Southern California hotel and attractions marketplace. Financial projections, however, do not justify continued heavy promotional and capital expenditures.
 We have enjoyed an excellent working relationship with the elected officials and staff of the City and Port of Long Beach and we have appreciated the support we have received from the community as a whole.
 In the event that operations are to be discontinued after Sept. 30, Disney will develop an employment assistance program, including the possibility of employment elsewhere within Walt Disney Attractions.
 -0- 3/6/92
 /CONTACT: Erwin Okun, senior VP of The Walt Disney Co., 818-560-5400/
 (DIS) CO: The Walt Disney Co. ST: California IN: ENT LEI SU:


CH -- LA009 -- 5962 03/06/92 15:38 EST
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Publication:PR Newswire
Date:Mar 6, 1992
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