Good day and welcome to the Children's Place fourth quarter 2007 earnings conference call. I will now turn the call over to Miss Heather Anthony, please go ahead Ma’am.

Thank you Kevin and good morning everyone, thanks for joining us today for a review of our fourth quarter fiscal 2007 financial results as well as an overview of actions taken resulting from our ongoing strategic review process. Joining us on this morning’s call are Chuck Crovitz, Interim Chief Executive Officer and Sue Riley, Executive Vice President of Finance and Administration. Also on hand to answer your questions at the end of our prepared remarks are Rich Paradise, Senior Vice President and Chief Executive Officer, Richard Flaks, Senior Vice President of Planning, Allocation and IT and Jill Kronenberg, Senior Vice President and General Merchandise Manager of the Children's Place brand. Today Chuck will review our announcements made today and Sue will cover our preliminary financials. We ask that you limit yourself to one question so we can get to as many callers as possible. Before we begin, I would like to remind participants that any forward-looking remarks made today are subject to the safe harbor statement found in this morning’s press release as well as in our Securities and Exchange Commission filings. After our prepared remarks, we will be able to take your questions. With that out of the way, I will now turn the call over to Chuck.

Thank you Heather, good morning everyone, thank you for joining us today. Earlier this morning we reported the fourth quarter and fiscal 2007 financial results and I also provided an update on our ongoing revenue of strategic alternatives. Let me first turn to the specific actions we announced this morning, which is consistent with the priorities we discussed in on third quarter conference call. On that call, we outlined our key go forward priorities the most important being the need to assess our operations and identify near term actions to improve the business. The plans we announced today are the result of that effort. For the last several months, we have conducted deep dive into the business. As part of that review, we have been able to confirm what we have believed and known to be true for many years. The core Children's Place business is strong, viable and while we certainly stumbled on many fronts in 2007, the business is improving. When we look at our performance in 2007, five factors had the greatest impact on our business. Our merchandise did not resonate with customers. Our inventory numbers were too high. Our expense structure and capital spending levels were not reflective of value or into business. We had to operate through a challenging macro economic environment. The structure of the Disney business with high variability and high capital requirements. What we also know is the business as usual is no longer acceptable. In an effort to right our ship and return the Company and the brand to it’s historical levels of productivity, we are compelled to make tough decisions that will enhance our organizational effectiveness. As outlined in our press release, we are embarking on the following four decisive actions. We are exiting the Disney Store’s North America business.…

Thank you Chuck and good morning everyone. Before I begin a discussion of our fourth quarter results, I want to remind everyone that financials as shown in last year’s press release were on a preliminary basis and have subsequently been updated as part of our financial restatements. Now moving on to our results. Consolidated net sales for the 13 weeks ended February 2, 2008, increased 4% $670.9 million compared to $645.2 million for the 14 weeks ended February 3, 2007. Fourth quarter sales were comprised of $443.4 million from the Children's Place brand a 6% increase over last year and $227.5 million from Disney Store flat to last year. As a reminder, last year’s fourth quarter had an extra week of sales that totaled $29.5 million. Consolidate comparable store sales increased 3% for the fourth quarter driven by a 2% increase in transactions and a 1% increase in average transaction size. By brand, the Children's Place increased 7% on top of last year’s 2% increase and Disney Stores comparable store sales decreased 4% compared to last years 14% increase. Consolidate gross profit dollars decreased 11% or 640 basis points to $250.5 million. Consolidated gross margin was 37.3% compared to 43.7% last year. The primary driver of the margin decline was higher mark downs at most brands and distribution costs. Further, as we have previously discussed, our holiday inventory levels were high and as such we increased our markdown reserve. Partially offsetting the margin decline was moderate occupancy leverage in both brands. SG&A as a percentage of sales was 30.9% representation a 110 basis points of deleverage. Taking out unusual items from both periods, SG&A as a percentage to sales was 29.4% compared to 28.1% last year. Contributors to the deleverage included royalty and commissions paid to Disney for the e-commerce…

Thank you Sue, operator I think we’d now like to open it up for questions.

Certainly. (Operator Instructions) Your first call is from the line of Tom Flanagan of SIG. Tom Flanagan – SIG: Thanks, you noticed that exiting of the Disney business at the Walt Disney Company might regain ownership of two thirds of the existing stores, does that imply that one third of the stores are expected to be closed due to maybe cash flow negative performance and if so, are the costs related to that closing embedded in your 50 to $100 million charge, how will you fund that 50 to 100 million charge and can Jill provide an update on spring highlighting successes in merchandising opportunities the balance of the year. That kind of was one question, thanks.

From Disney to spring that’s a great question, Tom. Compliments for that. In terms of the Disney business, I think that we are in discussion as we said with advanced discussions regarding how we transition the stores over to them. In terms of the remaining third, we are going to be exiting those one way or another. We said we are exiting this business; but, the exact way in which that is going to happen is something that we really can’t comment on at this point because we are still active in advanced negotiations. However, we will be able to explain all of this in the near term. I am just going to have to defer that question. Let me turn this over to Jill and let her talk about the more exciting news in spring.

Hi Tom. Tom Flanagan – SIG: Hi Jill.

In spring, we definitely sales a nice turning of the corner happening and even in the past two months we have been feeling that. All the businesses have been feeling good, having some nice successes in each and every one of them, which is nice. We are still cautiously optimistic about the rest of spring with a big shift in Easter. We have to wait and see what that brings to us. Overall, we feel we are very well positioned in a very difficult environment that we are in. Something that we have been talking to and Chuck mentioned in his overview was just our over arching merchandising strategy for the year, which is getting back to our roots, which talks about all the things that define and differentiate us from the competition, which is our great color, our head to toe outfitting, our trend right fashion that we are known for and all at a great value. That is the one over arching theme that we are heading for this year. Tom Flanagan – SIG: Thank you and any response to the funding of the cost related to exiting Disney.

Again Tom, it is premature; we will be getting back to you with more detail. Tom Flanagan – SIG: Thank you very much, best of luck to you.

We will now go on to Kimberly Greenberger, Citigroup please proceed.

Great, thank you, can you hear me okay?

Yes.

I am sorry; there was some background noise there. I just want to say first and foremost, congratulations to Jill, Nina and their team for restoring a gem of a business. I think the merchandising direction looks fantastic. In terms of the go forward look at the business, Sue. We are just trying to get a better understanding of how to model the stand-alone business going forward. If you could help us with that shared services bucket for last year, the 107 million. How many of the one time items that you listed in the press release are included in that number just to help us in terms of backing them out. When you say that the SG&A dollars for 2008 are expected to be flat, what is the base dollar amount we should be using off of which to model that?

First with regard to the one-time items that are included in shared service, we have a list of them out. Shared services as reported are $29.8 million. If you take out the specific items that we view as being one time that hit shared services, actually, we did list some of them in the addendum to the press release, you have $2 million on strategic alternatives, 2.3 or so of residual stock option investigation costs. Incremental audit fees of 1.2 million, again primarily in connection with the stock options investigation, the restatements, and then some executive severance of almost a million dollars, about $700,000. That leaves us with about $23.5 million of shared service expense that we are expecting to reduce as we start to realize the savings from this head count reduction year on year. That is the amount that the Children's Place is now going to have to absorb as we think about the Children's Place as a single brand less the amount that we can offset by reducing head count. As to the base for SG&A, you should use this year’s base, take out the one timers this year and then assume that as a percentage of sales in modeling out Children's Place as a stand alone for 2008. I would also like to say with regard to 2008, the Children's Place is the stand alone, once we conclude this Disney issue and exit the stores, we will be providing more clarity as to what we think Children's Place will look like as a stand-alone going forward. Kimberly Greenberger – Citigroup: Could you give us some sort of outlook for how you’re thinking about the cash management here in 2008 and do you think you have sufficient looking capital line of credit to get you through to 3Q and 4Q, which tend to be the quarters when you start building cash back again?

Yes, I would say that with regard to cash management, we are managing our cash much more tightly than we have before. I said in my prepared remarks that we did repatriate cash from overseas and we are deferring the opening of new stores into the latter part of this year. Recognizing that in the second quarter, we generally have experienced our lowest cash position as, we are not generating the top line in the second quarter that we do saying back to school that we are having the buy back to school inventory at that time. I am not going to comment as to whether or not the line is appropriate at this point but I will say that we are managing our cash much more conservatively than what we had in the past and that of course is coupled with significantly more conservative inventory management strategy as well, which will impact the summer months because that is when we start to pay for our back to school buy.

Okay, terrific, good luck here in 2008.

Thank you.

We will now go on to John Morris of Wachovia please go ahead.

The cost savings that you mentioned of $12 million potentially, can you give us a sense of how much of that or is that all applied to Children's Place core or is some of it also applying to Disney? Also, if you can give us an update on some of the management searches that are underway and an update there.

John, thank you, Sue can you pick up on this piece?

Certainly, in terms of the work force reductions that we announced to day are in the area of what we call shared services. Shared services are an organization that was created at the time of the Disney acquisition. The accounting organization was put into what is called Shared Services Organization to provide service to both Disney and The Children's Place. The specific groups are accounting and finance, human resources, information technology and then the whole stores organization. The organization that was created to manage maintenance and repairs and design, et cetera for both fleets of store, both Children's Place and Disney. That’s the group that when we refer to Shared Services that’s what we are referring. The announcements today represent about a 30% cut in the shared services headcount. The cost reduction at which we expect to realize in the latter part of 2008 and then the $12 million is the annualized number that we expect to realize in 2009.

Tom, the second part of your question about the executive searches, the search for the CEO is ongoing. It’s part of the whole strategic review process and that’s more of a Board issue at this level, we are staying very focused on recovering the business and maximizing value for shareholders over the medium and long term and really those are the only active search we have ongoing at this time. In terms of the President of the Children's Place, now that we are a single brand business, we just need to evaluate what the structure needs to be there and we haven’t landed that completely yet. But I, for the time being, am enjoying the offer to get much closer to The Children's Place brand as we become a smaller, more focused business.

Thanks.

We will now go to Margaret Whitfield of Sterne and Agee, please go ahead. Margaret Whitfield – Sterne and Agee: Good morning, you have given us some idea of what SG&A is looking like for the core business and I was wondering if you could comment on what the gross margin was for the core business only in ’07 and any directional comments on what we might expect in ’08.

Our gross margin in the fourth quarter was down in both businesses. We don’t disclose the split; however, I can say it was down more in Disney; it was down in The Children's Place as well. In part, as a result of the more conservative inventory management coming into ’08, we are not buying as much so we are not having to mark down as much. It is our expectation that we can increase our gross margin year on year as a result of having fewer markdowns. Of course, time will tell; but we are in fact buying fewer units so we expect to have lower markdowns in 2008, which should fuel the Children's Place margin. Margaret Whitfield – Sterne and Agee: Any comment on what the base margin was in ’07 for the core business only.

Again Margaret, we have not historically split out the gross margin for Disney and Children's Place; I can’t comment on what the base was except to say that we do expect it to improve in 2008 and the margin was down in both brands in the fourth quarter; but, down more in Disney.

I just want to put a little qualifier on that and that certainly is our target and our hope; but, this is a difficult economic environment and it’s a little dicey to predict where our gross margins are going to go.

Time will certainly tell. Margaret Whitfield – Sterne and Agee: You referred to the strategic review as ongoing, what additional aspects are you considering and nobodies mentioned shoes. Is that a go forward test?

Yes, the shoe business let me have Jill address that and I will come back to the other piece.

The shoe business right now we currently have about in 50 stores. It’s been a business that we are learning a lot from. We are taking our learning’s and applying it to this year and are feeling good about it and feeling actually good about the effects it is even having on our core shoe business that are in the entire chain. Basically, it has been a year of learning for us and we are applying those learning’s going forward.

The second half of your question about the strategic review, it is an ongoing review that is going on at the Board level and with our advisors and you have a big down payment on it today. It is a continuing review and we are not prepared really to talk about other avenues and other aspects we are looking at right now. We are completely committed to maximizing the value for our shareholders and as I said, it is an ongoing and active part of the work of the Board and the Senior Management team here. Margaret Whitfield – Sterne and Agee: Just one question, how many stores do you think Children's Place could ultimately have? Earlier it was stated, I think, 1200 stores and is that still the idea?

I think what we are focusing on right now is really recovering the business and restoring it to it’s previous levels of profitability and productivity and that has to be the focus right now. Then as we get through those first couple of stages, we will need to turn toward the future and the growth opportunities and we have had several on the table. We will dust that off and take a look at it. Right now, I have to say our focus is on recovering the base business and I don’t really want to comment on 1200, 1600 whatever numbers of stores until we really have a chance to thoroughly get into that. Margaret Whitfield – Sterne and Agee: Thank you and good luck.

Thank you Margaret.

We will now go on to Michael Shoregast of Long Acre. Michael Shoregast – Long Acre: I was just wondering, can you talk a little bit in looking at Shared Services, it seemed that maybe that suppose to be divided a little more evenly based on the store count or divided more pro rata based on the store count between Disney and Children's Place and so, I was just wondering was there an opportunity where into ’09 you think you are being conservative and you can bring that number down below 95 million where you are guiding to right now?

I think that this notion of going after our cost structure is an ongoing initiative and the reductions we are seeing in Shared Services are both a result of our decision to exit the Disney business as well as our continuing focus on getting the cost structure of the Company appropriate for our value-orientated retailer. I think it is ongoing and I think we are going to continue to work on those areas particularly through process improvements that will yield lower costs. We also expect for a transition period of at least that we will continue to offer services to the Disney Store chain. We have to work all of that out. Michael Shoregast – Long Acre: Just a follow up to Kimberly’s question, do you feel that you are current borrowing capacity is sufficient or will you have to get something new?

I will let Sue answer that.

What I said to Kimberly is that we are managing cash much more conservatively than we had in the past; we have repatriated $45 million of cash deferring store openings until the later part of this year and we have a significantly lower inventory buy year on year for back to school, which we believe is appropriate given the comps we experienced last year, the markdowns we saw last year and the economic environment that we believe we are heading into. Beyond that I haven’t commented and I am not going to comment at this point on the adequacy of our revolver except to say that we are managing cash much more conservatively than we had in the past. Michael Shoregast – Long Acre: Okay, thank you.

Janet Kloppenburg – JJK Research: Hi everybody, Sue, just a couple of questions. Can you give us what the depreciation expense was for the Children's Place business last year and can you guys talk a little about the third of the Disney stores that are not being taken back by Disney or not being considered to be taken back by Disney. Are they your expense, will there be charges involved perhaps with store closings? Then I have a couple of other questions about the P & L, thank you.

Let me quickly answer that first question, if we can call it an answer. We are just not at liberty to talk about what is going to happen to those stores right now. Once again, we are in advanced stages of negotiation and we will make all this clear over the next short period of time. (Inaudible) get it resolved. Janet Kloppenburg – JJK Research: Over a short period of time means…short to us is a month or so, is that a fair assumption?

I would say we are talking about days and weeks and not months. Janet Kloppenburg – JJK Research: Thank you very much, go ahead Sue.

Janet, it is Rich. On these depreciation and amortization for Children's Place only for the year was 5 million.

Janet, you said a few more questions. Janet Kloppenburg – JJK Research: On the gross margin line, if you guys could talk a little bit. Obviously, there is an opportunity in ’08 for leverage and occupancy and also improved full price selling. Jill, we are hearing about higher costs coming out of Asia, if you could talk a little bit about what you are seeing there. Last thing Sue, when you say flat SG&A dollars for this year, does that include an assumption of a higher bonus accrual than ’07, thanks?

We start with Jill and answer the questions about the Asia sourcing.

On the question in Asia, our team is over there right now. So far, year to date we have been able to mitigate most of the challenges that we’ve seen over there. We don’t know what the future is going to bring and that’s really where we are currently. Janet Kloppenburg – JJK Research: Wait, say that again Jill. You are unsure yet about the higher cost? Is that what you are saying?

We have been able to mitigate most of the pressure overseas. We place everything through fall ’08. Our teams are over there right now placing holiday and we have yet to see what they come back with currently but through fall of ’08, we have been able to mitigate most of the rising costs overseas and be are going to see what happens for this holiday. Janet Kloppenburg – JJK Research: Are you anticipating having to make any revision to your vendor base or factory choices?

No, nothing dramatic.

We should move on to the question about of occupancy leverage.

Janet, two other questions that you had. You talked about SG&A, we do anticipate when we think about plans for upcoming years to pay bonuses at that plan rate. I would include higher bonus payments, so the speak. In terms of occupancy leverage, we haven’t been committing on forward looking guidance, if you will. As sue mentioned, we are looking at our expenses, value of (inaudible) so our target, of course, would be to begin to leverage those costs but we have not provided specific information for the guidance on that. Janet Kloppenburg – JJK Research: On this, can you give us some guidance on tax rate on a quarterly basis for ’08, please?

Janet, I didn’t give guidance on the prepared remarks on the tax rate. As we said, we are going to give clarity to ’08, once we conclude what we are going to do with regard to the Disney Store. I do expect to see an increase in the rate. A substantial year on year and the reason for that is because we can no longer assert that our cash is invested permanently abroad. So, we will be taxed for the full U.S. rate. Then there a tax strategy in place years ago that are in fact driving the book rate up. Again, more clarity on 2008 once we (inaudible) what we are going to do with Disney Stores. Janet Kloppenburg – JJK Research: Thank so much and lots of luck.

We will now go on to Linda Tsai of MKM Partners please so ahead Ma’am.

Yes, hi, the 50 to 100 million exit cost encompasses a wide range, what accounts for the degree of variance? Then, what is just like a conservative estimate that maybe just a range of where you think the long term operating margin goal could get to?

On the 50 to $100 million, we have not concluded our negotiations and there is still several moving parts and alternatives that aren’t here so that’s what accounts for the range. Beyond that, we just can’t comment at this point.

Then, the ongoing margin that really would be stands alone Children's Place. What we said is that we will provide more clarity once we conclude what we are going to do with the Disney Stores. I’d also refer you on the range, if you just look at the 10K, the source of those exit costs or cash expenses are well documented in the 10K. As Chuck said, we just can’t provide more detail on that at this point in time.

Do you think you will provide more detail before the quarter ends?

(Inaudible) Shortly, as soon as we possibly can, we will.

Yes.

Okay, thank you.

We will now go to Brian Tunick of JP Morgan please go ahead. Andrea for Brian Tunick – JP Morgan: Andrea, could guys perhaps comment what kind of ramifications to Children's Place should we be aware of as a result of exiting the Disney agreement? As I recall, the original agreement appeared fairly onerous to exit. I was just wondering if you can comment on that?

At this point again we can’t comment on anything having to do with the exit until such time as we announce that the discussions with the Walt Disney operation have been concluded. At this point, I can’t provide more clarity except what is in the press release and what’s in the 10K. Have the impairment charge, which is in the press release, you have a range on cash cost recognizing it is a wide range. Again, it is documented in the 10K and beyond that we just cannot provide more clarity to those discussions. We will as soon as the discussions conclude. Andrea for Brian Tunick – JP Morgan: Could you provide any comments regarding Ezra against potential bid for the Company at $24?

We don’t comment on those kind of matters. I think that Ezra’s our largest shareholder; he has been instrumental in building the Company and I think we hope to and continue to work constructively with him as we do with all of our shareholders; but, I know (inaudible) is continuing to improve this business and to enhance shareholder value. Andrea for Brian Tunick – JP Morgan: Okay, that is helpful. Chuck, you mentioned that you guys are looking at the process improvement across the board, could you talk a little more specifically what kind of buckets of SG&A opportunity do you see longer term?

We talked about a couple of them in my prepared remarks. I think that a lot of this has to do with efficiency in organizations a number of levels and appropriate structures like duplication that is one level. There also is a series of process improvements and the big areas we mentioned was our non-merchandise procurement area that probably have purchased these expense items on a more uncoordinated basis and we are learning that as we coordinate those purchases that we can really take advantage of large economies of scale and negotiation and get our cost down there. Other things, just as we said, taking the time to reengineer our stores and make sure that the design that we are very happy with now is built in the most cost effective way both in the immediate cost but also that the materials are chosen to have the lowest life cycle cost. We have been going through in terms of audits and review of different contracts to make sure that we are fully realizing the services that we are paying for and that we are fully availing ourselves of all the credits that we are entitled to several other areas. It is a very broad based look. The management team is highly committed and incentive to go after these costs in an aggressive way. I am really pleased with the progress that we are making. Andrea for Brian Tunick – JP Morgan: Okay, that is helpful; good luck guys.

We will now go to John Roberts of Buckingham Research.

Thank you and good morning, you have had a lot of good questions already and I just wanted to follow up on something Tom started with earlier and make sure I understand that the 50 to $100 million that you are talking about in cost to exit the Disney business. That in addition to the $80.3 million asset charge was taken in the fourth quarter; both of those items are all cash charges, right, they are not non-cash?

Not exactly, let me clarify this issue. First, the Company took an impairment charge one pertaining to exiting the Disney Store and the other pertaining to our decision not to move forward with Jill Emerson. Those are non-cash charges at this point in time. That is basically taking assets that are on the balance sheet and recognizing that they are not going to be generating cash flows into the future or that they are not going to be utilized as intended and writing them down. That is a non-cash charge. Looking to 2008, what we did say is that there could be a cash charge or cash expenditure from the Children's Place into the Hoop or elsewhere pertaining to the exit of Disney and again that is all documented in the 10K. I just want to clarify the distinction between those two amounts. One is not cash; it is writing down asset value that is on the balance sheet and then the other would in fact be a cash outflow from Children's Place.

John, when you observe there has been many good questions around the 50 to 100 million, there haven’t been many detailed answers yet; but, they will be forth coming.

I don’t know if you can answer this question or not; but, I will ask it anyway. One third of the stores that I understand you are still in advanced stages of negotiation to determine what to do with them, is for our expenses related to potential outcome of those one third of the store base, is that included in the 50 to 100 million or is there potentially going to be an additional cost for that one third of the store base?

We think that 50 to 100 million represents the entire range of cash cost for exiting the business.

Beyond that we cannot comment, John.

Okay, that is helpful. Then you very nicely went through a reconciliation of the shared services piece for the fourth quarter telling us what was one time in nature and what was an ongoing expense. I think what most analysis would be looking for the greatest degree of help would be that same reconciliation for the full year $107 million expense. Sue, could you possibly run through that 107 million and just let us know what in there was one time in nature?

Certainly, the strategic alternatives please start with 107 million. You have strategic alternatives of 2.2 million, stock option investigation and related expenses are 10.3 million, pretax, incremental audit fees are 1.2 million and then we have a much larger severance number on the full year and that is because of course we have a CEO severance that was built in there in the third quarter so that is almost $5 million, which gets us to about 88.5 for the normalized shared services for the year.

Then looking forward to using that 88.5 million as a base, is that the piece that you believe you can reduce by an additional 12%?

Yes.

Thank you.

We will now go to Margaret Shapiro of The Retail Tracker please go ahead Ma’am. Margaret Shapiro – Retail Tracker: I am very much looking forward to less complicated press releases. I have a Children's Place question since that is the business that is ongoing. Can you just walk us through your thought process today as to what is the right number of stores Children's Place should have across the country outlets versus front line stores and how many of the stores today have been touched and put into the new prototype and are you considering as you look to reduce the cost of these new prototypes as you open stores and renovate, are you considering a new prototype as well?

Yes, as I said before, I don’t think we have a great visibility to the total store count yet. We need to go back and look at that; we do have a division between our Technicolor store and our Applemaple which is about 40/60 overall. We are looking to building more Technicolor obviously that’s our fore into the future but mostly what we are doing is valuing engineering on that format and also doing some refurbishment on some of the other stores; but again value engineering some of those materials as well. Margaret Shapiro – Retail Tracker: If you look at the product assortment going forward and Jill congratulations and I think the stores look so much better, have you looked at the way the store lays out and the fixturing and even things like that as far as the cost in the store as ways to possible reengineer the stores? Given how you are moving forward, it looks like a much cleaner assortment and little bit more edited and I am just curious if you could tinker with even internally in the store.

That is one thing we talk about a lot always looking to find better ways to present the merchandise; but I think much of our focus right now is on value engineering the new prototype. Once we get that to a place where we are comfortable, then we can start looking at any tweaks we think we might have to do to better present things. We are comfortable right now with Technicolor. We are happy right now with the set up of the stores and the way the configuration with the tables and the fixtures.

I do think that Jill, me and Richard have done a great job in terms of really focusing and being more disciplined to the assortment strategy of moving out of third quarter which is giving this store much cleaner and a much more focused look. I think it is part of the way we are going after the reduction of inventories also reduction in style counts and SKUs and so forth. This, I think, is helping our store to be very cleaned up.

The majority of the reduction in inventory is driven by narrowing the assortment, not investing in (inaudible). Margaret Shapiro – Retail Tracker: All right, good luck with everything.

Lastly we have a follow up from Kimberly Greenberger of Citigroup please go ahead Ma’am. Kimberly Greenberger – Citigroup: First, after you exit the Disney business, will you report that as a discontinued operation and restate last year or how will that work, Sue?

Exactly, it will be reported as a discon and we will in fact restate last year for the discontinued operation. Kimberly Greenberger – Citigroup: Would that be done shortly after your conclude your negotiation with the Walt Disney Company you would re-file or when would we get the timing on the restatement?

It would be coincident with the filing of our 10K in the first quarter. Kimberly Greenberger – Citigroup: Okay, so in May we can get a clean LY restated number.

That’s correct. Kimberly Greenberger – Citigroup: Sue, did I hear you right? There would expected to be a higher tax rate here in 2008 on the repatriation of some of the funds?

That is correct. Even though we repatriated toward the end of the fourth quarter of 2007, we can no longer say that our cash is permanently invested abroad. We will be incurring a higher tax rate in 2008 and beyond as a result. Kimberly Greenberger – Citigroup: One last question, any comment you can give publicly on the active dialogue that the board has with Ezra. Is there an open communication line there? Is there a regular dialogue and how are you looking at maintaining that relationship?

I think I mentioned before that Ezra is an active member of our board and obviously he is our largest shareholder, is instrumental in building the business, and has a lot of great insight into this business and we value the input he continues to work actively on the board. It involves major decisions. I just don’t think that much has changed in that regard. Kimberly Greenberger – Citigroup: Great, thank Chuck and good luck in ’08.

I want to thank everybody else for joining us on the call and for your interest in the Company and we will continue to keep you updated as we said repeatedly and hopefully in the near future on the results of this Disney situation. Again, thanks very much; I appreciate your participating and look forward to talking some more.

We actually have two additional questions. Are we going to take those questions?

Sure, why not.

We will go to Vick Camar of Sintos Partner please go ahead.

Does your CapEx guidance for the year include the savings from value engineering or is that something in the future?

It includes a portion of them; but, not all of them that we hope to be able to achieve.

I just wanted to check; I think you had this before, I think I may have misread the press release. If the 50 to $100 million that you are anticipating for the cash exit cost, is that the entire cost? Maybe I am misreading the press release, anyway it sounds like there might be additional costs of the subsidiary.

We really can’t comment beyond what is in the press release and the 10K at this point in time.

Okay, that was it then. Thanks.

Once again thank you very much for joining us and we will be back in touch soon.