North Hollywood, Calif. - Disney Online (NYSE: DIS), part of the company's Walt Disney Internet Group, has announced the formation of a new unit, Disney Online Studios, that will focus on creating and publishing games, virtual worlds and online social communities.

Among those joining the group will be the team that created Disney.com XD, the broadband games, video and community site, and staff from Disney Online's Virtual Reality Studio, which launched "Toontown Online" and "Pirates of the Caribbean Online."

Disney Online veteran Steve Parkis was promoted to senior vice president, and named to lead the new group.

"Online games and community continue to be a key focus of our entertainment content," said Paul Yanover, EVP and managing director of Disney Online.

"As the number one ranked site for kids and families, Disney.com reaches more than 27 million unique visitors a month, and far and away the top reason guests come to our site is for games and other interactive online entertainment."

Current Disney Online Studios projects include virtual worlds based on the Disney Fairies franchise ("Pixie Hollow"), and the animated film "Cars."

Related Links:
http://biz.yahoo.com/bw/080219/20080219006194.html?.v=1

http://biz.yahoo.com/bw/080219/20080219005254.html?.v=1

http://www.toontown.com

http://www.piratesonline.com