We intend to continue to develop original computer-animated feature films for the family entertainment market. We are currently in various stages of production on three other original animated feature films: The Incredibles, Cars and our first feature film produced outside of our existing Disney relationship (“Project 2006”). The Incredibles and Cars will be produced and distributed under the Co-Production Agreement and will count as the remaining two films of the original five Pictures to be produced under the Co-Production Agreement. Brad Bird, who previously directed and wrote the screenplay of the critically acclaimed animated feature The Iron Giant , is currently working on The Incredibles , which is targeted for a 2004 holiday release. John Lasseter, the Director of Toy Story, A Bug’s Life , and Toy Story 2 , and Executive Producer for Monsters, Inc . and Finding Nemo , is currently directing Cars , which is targeted for a 2005 holiday release. Project 2006 was approved for production in February 2003 and is currently targeted for a 2006 release. See “Risk Factors — Our scheduled successive releases of feature films will continue to place a significant strain on our resources.”

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