Disney Agrees on Proposed Settlement of Retirees' Class Action.

BURBANK, Calif. and PITTSBURGH--(BUSINESS WIRE)--Nov. 7, 1997-- The Walt Disney Co. and attorneys representing Disney retirees and long-term employees announced they have reached a proposed class settlement which will resolve a class action complaint filed Friday in the United States District Court for the Central District of California.

The complaint centered on Disney's reduction beginning in 1994 of certain retiree medical benefits. The settlement, which requires court approval, was initiated by six former Disney employees, who had retired after many years of service, as well as a long-term employee who still works for the company.

The retirees' attorneys, after investigation, notified Disney of their claim and began months of negotiations in an effort to reach a settlement. The proposed settlement, if approved, will benefit approximately 1,500 retirees, as well as around 2,500 employees who had 20 credited years of service at the time Disney began making certain changes in the plans.

Disney said it believes it acted properly in implementing the changes to its post-retirement medical program, but in recognition of the loyalty and long service of its retirees, it has agreed as part of the settlement to rescind some of the reductions in benefits.

The proposed settlement will reduce the contributions which Disney had sought from current retirees. As an example, for a retiree on Medicare, the required contribution will be reduced 90 percent for the highest form of coverage among several options. For long-term employees who had become ineligible for company-paid benefits between age 62 and 65 , Disney will -- as part of the settlement -- make a lump sum payment when they reach 62 or when they terminate employment.

The retirees' lawyers are William Payne and Dolly Gee, partners in the labor and employment firm of Schwartz, Steinsapir, Dohrmann & Sommers LLP, and Daniel McIntyre, a specialist in benefits litigation, and Edwin Ivy, an Orlando, Fla., lawyer.

CONTACT: The Walt Disney Co., Burbank

Tom Deegan, 818/560-1572

or

Schwartz, Steinsapir, Dohrmann & Sommers LLP, Pittsburgh

William T. Payne, 412/456-2008