"It's been clear since we launched the MVNO that we were offering something both unique and useful for families that wanted to provide their kids with a mobile phone with suitable content and features while retaining a measure of control on how and when it would be used," said Steve Wadsworth, president of the Walt Disney Internet Group. "Our feedback from customers and critics from the beginning has been that we exceeded the mark in that respect. However, the MVNO model has proven, as we've seen with other companies this past year, to be a difficult proposition in the hyper-competitive U.S. mobile phone market. In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area."

WDIG, a worldwide leader in the mobile content business, is exploring opportunities with major U.S. carriers with regard to a new business model for the Family Center features.

Current Disney MVNO customers will continue to receive service and support until Dec. 31, 2007. Customers who have questions should see www.DisneyMobile.com or call Guest Services at 1-866-DISNEY2 for more information.

Disney will offer a reimbursement program for eligible customers. Additional details surrounding the reimbursement program will be available on the aforementioned Web site no later than Oct. 8, 2007.