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RECENT TRENDS AT EURO DISNEY LEAD TO STRATEGIC REEXAMINATION

 /EDITOR'S NOTE: The press release which follows was issued this morning, July 8, 1993, by Euro Disney SCA prior to the opening of the Paris Bourse./
 PARIS, July 8 /PRNewswire/ -- Euro Disney announced that it will sustain a loss for its third quarter (April 1-June 30) of approximately $500 million French francs. This loss is due to a number of factors. The level of spending per visitor on food and merchandise in the theme park and at the hotels was significantly below expectations. Hotel occupancy was also lower than anticipated. In addition, losses were increased by the continuing high level of interest, lease and depreciation charges resulting from the large initial investment in the first phase of the Euro Disney Resort.
 Tourism in France has been adversely affected by the economic downturn in Western Europe and by the devaluations of the U.K., Italian, and Spanish currencies. This downturn has also had a direct impact on Euro Disney. In addition, the real estate market in the Paris region has remained depressed, preventing the company from realising anticipated revenues from real estate development.
 Despite these difficulties, attendance at the theme park totalled 3.1 million for the quarter. In addition, although hotel results have been disappointing, occupancy increased 10 percentage points from last year to 68.5 percent for the quarter.
 On the basis of recent trends, the company expects to incur a loss during its fiscal fourth quarter (July 1-Sept. 30), which covers the peak summer season.
 As a consequence of these difficulties, the company, together with The Walt Disney Co., the company's major shareholder, is engaged in a thorough review of its financial structure and its development strategy. Due to the complexity of this process, the company does not expect the main components of any plan to be in place before the spring of 1994. The Walt Disney Co. has agreed to help finance the company's capital expansion and working capital requirements through this period.
 Euro Disney confirmed that it continues to discuss the second phase of its development program with the French Public Parties. The company is studying how to adapt its development to the current economic climate within the framework of the Second Detailed Program (the legal document which defines the second phase of development).
 Philippe Bourguignon, President-directeur general of Euro Disney stated: "I regret that the current economic environment does not allow us to proceed to an immediate signing of the Detailed Program, especially since this program was developed with the excellent and close cooperation of the French Public Parties. It seems reasonable to us to be prudent for the short term even if we and The Walt Disney Co. remain confident in the long term."
 -0- 7/8/93
 /CONTACT: Jean-Marie Gerbeaux of Euro Disney, 011-331-64-74-59-55; or John Dreyer or Tom Deegan of The Walt Disney Co., 818-560-5400/


CO: The Walt Disney Co.; Euro Disney ST: California IN: LEI ENT SU:

JL-MF -- LA016 -- 9320 07/08/93 08:14 EDT
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Date:Jul 8, 1993
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