“as a child of egyptian immigrants,downloads.cdn.sesame.org/sw/sworg/documents/annual... ·...

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“As a child of Egyptian immigrants, growing up was a very difficult thing. I always felt like I didn’t quite fit in. Sesame Street was my place of refuge. It was a happy place. I remember feeling that it was okay to be different; that on Sesame Street it didn’t matter if you were blue or if you were green or if you were yellow.” – teacher and lifelong Sesame Street fan 2004 Annual Report

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“As a chi ld of Egyptian immigrants,growing up was a very d i f f icu l tth ing. I a lways fe l t l i ke I d idn’ tquite f i t in. Sesame Street was my place of refuge. I t was a happyplace. I remember feel ing that i twas okay to be different; that onSesame Street it didn’t matter ifyou were blue or if you were greenor i f you were yel low.”

– t e a c h e r a n d l i f e l o n g S e s a m e S t r e e t f a n

2 0 0 4 A n n u a l R e p o r t

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Respec t and Unders tand ing

“Today we plant the seed; tomorrow is in our hands. We know a better world is up to us.”

These words, sung by children in Hebrew and Arabic, are part of the theme song

that opens and closes every episode of Sesame Stories, the groundbreaking

media initiative helping Jordanian, Palestinian, and Israeli children learn about

themselves and one another as a bridge to a better tomorrow.

We know, of course, that it’s never that simple. But we also know that media can

be used effectively to foster respect and understanding among children across

and within cultures and countries. For the last three decades, Sesame Workshop

has been at the forefront of this effort: using Sesame Street in the United States

and in coproductions around the world to help children develop the skills to

challenge ignorance, dispel stereotypes and champion diversity – skills that

contribute, in no small way, to sustaining peace in an increasingly complex

and interconnected world.

In addition to Sesame Stories, targeted efforts to promote respect and under-

standing include Rruga Sesam and Ulica Sezam, a Sesame Street adaptation in

Albanian and Serbian respectively, that helps children from different backgrounds

in Kosovo learn about one another. And here in the United States “Global Grover,”

a daily segment of Sesame Street, introduces children to the ways in which their

counterparts live around the world.

Grover USA >

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“Sesame Street has meant the worldto me! As a chi ld i t was my f irstteacher, my f irst Engl ish tutor…. As an only chi ld in a new country i t was also my best fr iend; i t gaveme a sense of belonging…. As a parent, I see the enthusiasm on my son and daughter ’s [faces] asthey watch Elmo and crew…. Theyhave learned so much – colors,alphabet, numbers, sharing, l i fe…[The show is] [rein]forcing theirdesire to learn….”

– p a r e n t a n d S e s a m e S t r e e t g r a d u a t e

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Schoo l Read iness

Entering school “ready to learn” requires more than recognizing letters and

numbers. It requires physical skills and the abilities to listen, get along with

others, and develop friendships. It requires a sense of mastery over behavior

and emotions and the abilities to predict and recognize the consequences of

actions. It requires enthusiasm for learning.

Sesame Workshop is unique in its focus on the full range of child development.

We embrace the “whole child,” helping develop the cognitive, social, emotional,

and physical skills necessary for children not only to be ready for school but to

reach for a bigger, better world.

This approach is as central to Sesame Street abroad as it is domestically,

particularly in places where access to educational opportunity is limited. Our

coproductions in Egypt and Mexico promote school readiness for all children

and soon in Bangladesh and India, our work will support a new focus on the

importance of early childhood education.

Here at home, we’re in the early stages of a new educational outreach project

for children in rural America. Created in collaboration with the Early Childhood

Institute at Mississippi State University and “Between the Lions” producers WGBH

and Sirius Thinking, Ltd., the Rural Literacy Project will consist of video, audio,

DVD, and print materials for children, caregivers, and teachers to help redress

gaps in school readiness among children in rural regions.

< Abelardo Mexico

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“My fr iend…is Nomfundo.. . . Hermom died a few weeks ago…. Ifeel sad because my fr iend is HIV posit ive. Other chi ldren they don’tplay with her and they don’t loveher. My fr iend is st i l l my fr iendand I love her. Everyday I ’mwatching Takalani Sesame with my fr iend. Moshe and Kami onTakalani Sesame they care aboutpeople who are HIV posit ive…”

– y o u n g Ta k a l a n i S e s a m e f a n f r o m E s h o w e To w n s h i p , S o u t h A f r i c a

Ta k a l a n i S e s a m e i s t h e S o u t h A f r i c a n a d a p t a t i o n o f S e s a m e S t r e e t

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HIV/A IDS Educat ion

Kami, the vibrant Muppet on Takalani Sesame, the South African adaptation ofSesame Street, is sad and doesn’t want to play. “Why not?” asks her Muppetfriend, Zuzu, curious and concerned. “The other children at school don’t want to play with me because I’ve got HIV,” Kami explains. “They don’t want to touchme because they think I will make them sick.” Throwing her arms around Kami,Zuzu exclaims, “…but you can’t get HIV just by touching someone. We’re notscared to play with you, because we know that we can’t get HIV just by beingyour friend!”

Clear, simple statements spoken by characters children love and trust, state-

ments that empower children with age-appropriate information to cope with the

consequences of HIV/AIDS – these are the hallmarks of Takalani Sesame and its

pioneering HIV/AIDS curriculum, launched in 2002 to address the devastating

impact of the disease on South Africa’s children.

Developed in collaboration with coproducing partners, the curriculum centers on

the adventures of Kami and provides children and their caregivers with basic

knowledge about the disease, skills for coping with profound loss, and a basis

for altering behaviors that perpetuate HIV- and AIDS-related stigmas. Since her

debut, Kami has been warmly received and widely recognized, helping to increase

public discourse on issues typically constrained by prejudice and silence.

Kami South Af r ica >

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“I learn everyday something newfrom my fr iends Khokha, F i l f i l , and Nimnim, which helps me tobecome a better person.”

“I l ike Khokha because she encourages us to go to school…”

– y o u n g v i e w e r s o f A l a m S i m s i m

A l a m S i m s i m i s t h e E g y p t i a n a d a p t a t i o n o f S e s a m e S t r e e t

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Gi r l s ’ Educat ion

“My name is Khokha. I am a young girl. When I grow up, I’ll be a doctor. I’ll be a pilot or a ship captain or I could also be a lawyer….” So sings Khokha, thebubbly female Muppet in Alam Simsim, the Egyptian adaptation of SesameStreet, as she imagines what she’ll be when she grows up. Central to the sceneis something subtle but equally powerful: As Khokha happily sings, the malecast around her – two men, a boy, and two Muppets – affirm each choice, lending support and encouragement to a young girl’s sense of possibility.

On Sesame Street, as in all Workshop productions, we strive to help all children

reach their highest potential by modeling a sense of what’s possible and making

sure girls, Muppets, and everyone else, no matter their color, gender, size – or

stripe – are not defined by stereotypes.

This is particularly potent in those parts of the world newly committed to lifting

the status of women. In Egypt, for example, where illiteracy among girls is

disproportionately higher than among boys, one of the central themes of Alam

Simsim is to promote girls’ education. The same is true in Afghanistan where

Koche Sesame, the Afghani adaptation of Sesame Street, endorses equal access

to educational opportunity.

By modeling girls engaged in academic pursuits such as reading, studying,

and going to the library, the program helps girls – and just as important, boys –

broaden their sense of what constitutes a woman’s role in society. After all, for

many children, media is the lens through which they view the world; it is both

the reflector and the definer of cultural norms.

Khokha Egypt >

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300,000chi ldren under the age of 18 are d i rec t ly

invo lved in armed conf l i c ts wor ldwide

6,000,000chi ldren in the Uni ted S ta tes are obese

800,000South Af r ican ch i ldren became HIV-pos i t i ve in 2002

1,000,000women in Egypt cannot read or wr i te

2,000,000mil l ion Mexican ch i ldren do not a t tend school

500,000Afghan g i r l s a t tended school under the Ta l iban

1,000,000women in Egypt cannot read or wr i te

2,000,000mil l ion Mexican ch i ldren do not a t tend school

“Sesame Workshop’s. . . ’HealthyHabits’ campaign offers a new and welcome opportunity to.. .help address one of our nation’sgreatest publ ic health threats.. . .By helping preschool-aged childrenlearn lessons about healthy eatingand exercise.. .we can.. . improvethe health of our next generation.”

– S e n a t e M a j o r i t y L e a d e rB i l l F r i s t , R - Te n n .

M a y 2 0 0 4 l a u n c h o f S e s a m e W o r k s h o p ’s “ H e a l t h y H a b i t s f o r L i f e ” i n i t i a t i v e

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Hea l thy Hab i t s fo r L i fe

Sesame Workshop has long modeled strategies to promote good health on

Sesame Street and in other Workshop endeavors. But in response to alarming

trends in childhood obesity and its attendant illnesses, the Workshop has

turned up the volume, launching a comprehensive, multiyear initiative to help

preschoolers and their families develop “Healthy Habits for Life.”

Recognizing that maintaining good health is as central to a child’s success as

learning ABCs and 123s, the Workshop – in partnership with the US Department

of Health and Human Services, PBS Kids, The Parenting Group, the National

Association for the Education of Young Children, The Ad Council, and the YMCA

of America – is creating content in various media to help children learn how to

take care of their bodies, and help parents help their children do so.

Informed by an advisory board of top health, nutrition, fitness, and education

experts, the “Healthy Habits for Life” curriculum will span the 36th season of

Sesame Street. It will also include public service announcements; new book

titles and Sesame Street Magazine content; a bilingual, educational outreach

kit; an interactive museum exhibit in fifteen cities; a new online area on

SesameStreet.com; theme-based entertainment; and new home video, DVD,

and audio releases – all providing extended opportunities for children to

establish healthy habits now, to last a lifetime.

15,000,000chi ldren have been orphaned by HIV/AIDS, as o f 2003.

Nowhere is th is ep idemic more devastat ing to ch i ldren than in sub-Saharan Af r ica , home to 80% of those orphaned by the d isease.UNICEF Repor t : "Ch i ldhood Under Threat : The S tate o f the Wor ld ’s Ch i ldren 2005"

17,600,000chi ldren under age 5 wor ldwide are es t imated to be overweight .

In the Uni ted S ta tes , the preva lence of obese ch i ldren aged 6 to 1 1 years has doubled s ince the 1960s.Wor ld Heal th Organizat ion : G lobal S t ra tegy on D ie t , Phys ica l Ac t i v i ty and Heal th , 2003.

20,000,000chi ldren have been forced by conf l i c t or human r ights v io la t ions to leave the i r homes in the las t decade.UNICEF Repor t : "Ch i ldhood Under Threat : The S tate o f the Wor ld ’s Ch i ldren 2005"

65,000,000of the wor ld ’s pr imary-school-age g i r l s do not a t tend school .Implementat ion of the Uni ted Nat ions Mi l lenn ium Dec larat ion , Repor t o f the Secretary-Genera l , 2004.

< Zoe USA

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Making a difference – one child at a time, millions of children the world over. That’s

what it’s about for us: effecting change on a scale unique to mass media, yes, but

change that moreover takes hold and grows, one child at a time.

Nothing expresses this more clearly than the letters, e-mails, drawings, and other direct

contact we have with our audiences, young and old, here and around the world.

This year’s annual report features quotes from several such exchanges. Each is a

reflection of the impact of our work on one individual, which also calls attention to

children’s greater needs – needs that go beyond learning ABCs and 123s.

After all, children live in no less “real” a world than adults do. From its inception, the

Workshop has recognized and honored the way children experience their environments.

We do this not by holding fast to an unchanging view of children or the challenges

they face but by embracing and incorporating new issues into our programming as

new needs arise.

Pres ident ’s Le t ter

Sesame Workshop 2004 Annual Repor t 13

progress is poss ib le…

onechi ld at a t ime

a message from the President

millionsof ch i ldren each and everyday

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This is why, in addition to promoting school readiness in more than 120 countries,

our work includes initiatives to reduce the stigma associated with HIV/AIDS in South

Africa; encourage gender equality in Egypt and Afghanistan; prevent childhood

obesity and promote healthy lifestyles in the United States; and foster cross-cultural

respect and understanding among children in Israel, Jordan, and Palestine, as well

as among Albanian- and Serbian-speaking children in Kosovo.

Our ability to address children’s needs derives from a process first pioneered with

Sesame Street in 1969, a dynamic collaboration among educators, researchers, and

producers to set goals, establish curricula, monitor impact, and continually raise the

bar. The Sesame Workshop Model has proven effective around the world as a flexible

framework for the expression of local norms and indigenous social practices, producing

a range of educational outcomes in different countries to meet different needs.

And it’s more than television. We apply the model across multiple media – radio,

books, magazines, computers, film, video, and educational outreach – to reach

children wherever they are and with whatever resources are available to them.

We serve as a catalyst for change that brings together local stakeholders in the public

and private sectors. Government ministries, development agencies, foundations, civic

groups, corporations, philanthropists, educators, broadcasters, and many others

coalesce around our projects, united in the shared purpose of using media to make

a difference in children’s lives.

If there is one factor responsible for our success, besides a strict adherence to mis-

sion, it is research – research that helps us understand children’s changing needs

and how media can best address them. The same spirit of innovation and experi-

mentation that suffused this organization 36 years ago continues today, perhaps

even more so, with research called on to maximize the educational potential of mul-

tiple media across multiple continents and multiple cultures.

Of course, the truest measure of our success will always be the meaningful differ-

ences we make in children’s lives. More than 1,000 studies on record speak to this

efficacy, but none more powerfully than the letters and comments we cite here.

They give us great hope that progress is possible. And there are so many more

encouraging signs: The schoolgirl in Paghman, Afghanistan who learns not only

about letters and numbers from Koche Sesame, the Afghani adaptation of Sesame

Street, but is also encouraged to believe in herself and all she can achieve; the

daughter of Egyptian immigrants to this country, who credits watching Sesame Street

as a child with her sense of belonging as well as her career choice as a teacher;

Pres ident ’s Le t ter

Sesame Workshop 2004 Annual Repor t 15

Pres ident ’s Le t ter

2004 Annual Repor t Sesame Workshop 14

“…a dynamic collaboration among educators, researchers, and producers to set goals, establish curricula, monitorimpact, and continually raise the bar.”

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the 6-year-old Iraqi girl who, in the midst of war, writes to tell us that she and her

younger brother love and want to be friends with the characters on Alam Simsim,

our Egyptian production broadcast via satellite to Iraq and 21 other Arab nations.

Each is an example of progress – one child at a time.

I think we can all agree that education changes the course of history, that through

education we can make measurable differences here and around the world, now

and for generations to come. This was the conviction and idealism that sparked the

creation of Sesame Street and the Workshop in the late 1960s, and even now with

the world a different place, continues to sustain us. Despite all the changes of the

last four decades, our vision, our values, our focus on helping children learn have

remained constant. One child at a time, millions of children the world over.

Pres ident ’s Le t ter

16

G a r y E . K n e l lP r e s i d e n t a n d C h i e f E x e c u t i v e O f f i c e r

For more than 35 years , Sesame Workshophas been he lp ing ch i ld ren learn , grow andreach the i r h ighest potent ia l . F rom Brook lynto Kabul , we connect with mi l l ions of chi ldrenand ef fec t change where i t mat ters most .

“…through education we canmake measurable differenceshere and around the world, nowand for generations to come.”

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Sesame S t reet

Now celebrating its 35th consecutive season, Sesame Streetcontinues to set the gold standard for excellence in educationalmedia, helping children in the United States develop the cognitive,emotional, physical, and social skills essential for today’s world.

Par tners

Broadcast:PBSNoggin

Funding:Corporation for Public BroadcastingMcDonald’s CorporationThe Quaker Oats CompanyUnique Vacations, Inc., worldwide representatives for Beaches ResortsUS Department of Education (Ready-to-Learn)

B rook lyn, New York

<

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Plaza Sésamo

Premiering in Mexico in 1972, this Spanish-language adaptationof Sesame Street now broadcast throughout Latin America, theCaribbean, and the United States, promotes school readinesswhile showcasing cultural diversity.

Par tners

Broadcast / Project:Discovery Kids Latin AmericaTelefuturaTelevisa

San Sa lvador, E l Sa lvador

>

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Koche Sesame

Launched in 2004, Koche Sesame, the Afghani adaptation ofSesame Street, is an educational outreach initiative that brings tolife basic lessons on literacy, numeracy, gender equity, and globalcultural awareness for Afghani children. The Egyptian adaptationof Sesame Street, based on the television series Alam Simsim andtranslated and dubbed into Dari, includes print and video materialssupported by classroom supplies that together advance educa-tional reconstruction in Afghanistan.

Par tners

Project / Funding:The Government of QatarRAND

Paghman, Afghanis tan

®

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Sesamstrasse

Premiering in 1973, the German adaptation of Sesame Street isamong our earliest international coproductions. Airing seven daysa week, the program remains popular among Germany’s youngestcitizens. Throughout the years, Sesamstrasse has helped childrenlearn through discovery. More recently the program has includeda special focus on helping children develop awareness of andrespect for Germany's increasingly diverse population.

Par tners

Broadcast:Norddeutscher Rundfunk (NDR)KiKa (Der Kinderkanal)ARD

Ber l in , Germany

>

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Rot terdam, The Nether lands Sesamstraat

Looking forward to celebrating its 30th anniversary in 2006, theDutch coproduction of Sesame Street focuses on children’s socio-emotional development with an emphasis on music and the arts,closing every evening broadcast with a signature bedtime story.

Par tners

Broadcast:Nederlandse Programma Stichting (NPS)Nederlandse Omroep Stichting (NOS)

<

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Amman, JordanSesame S tor ies

This groundbreaking media initiative helps Jordanian, Israeli, andPalestinian children learn about themselves and one another asa bridge to a better tomorrow in the region.

Par tners

Broadcast:HOP! ChannelJordan Radio and TelevisionMa’an Network

Project:Al-Quds Educational TelevisionHOP! ChannelJordan Pioneers (JP) for TV ProductionMiddle East Nonviolence and Democracy (MEND)

Funding:European UnionThe Kahanoff FoundationThe Ford FoundationThe Atlantic PhilanthropiesCharles H. Revson FoundationThe Netherlands Ministry of Foreign AffairsJoseph and Harvey MeyerhoffFamily Charitable FundsForeign Affairs CanadaThe Double H Foundation, Inc.Alan B. Slifka FoundationThe Zanvyl and Isabelle Krieger FundThe Wolfensohn Family Foundation

>

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New London, South Af r ica Takalan i Sesame

Through television, radio, and community outreach programs, theSouth African adaptation of Sesame Street helps preschoolersdevelop basic literacy and numeracy skills. And, in a country wherethe devastation of HIV/AIDS impacts so many children’s lives,Kami, a Muppet who is HIV-positive, conveys age-appropriatemessages designed to reduce the fear and stigma associatedwith the disease and help children cope.

Par tners

Broadcast:South African Broadcasting Corporation (SABC)

Project:South African National Department of Education

Funding:SANLAM Life Insurance LimitedUnited States Agency for International Development (USAID)

<

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Moscow, Russ iaUl i tsa Sezam

First broadcast in 1996, this Russian coproduction focuses onhelping that nation’s youngest citizens develop the skills to thrivein an open society, maintain a healthy lifestyle, and gain anawareness of and appreciation for diversity.

Par tners

Broadcast:CTCNTV

Project:Ministry of Education and Science of the Russian FederationRitm TV, a subsidiary of DIXI-TV Productions

Funding:Nestlé Food LLC

>

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Rruga Sesam and Ul ica Sezam

Debuting in November 2004, this Sesame Street coproduction –Rruga Sesam in Albanian and Ulica Sezam in Serbian – provideschildren in Kosovo with critical early education skills. At the sametime they promote awareness and understanding of their ownculture and the multiethnic society in which they live.

Par tners

Shkabaj , Kosovo

Broadcast:Radio Television of Kosovo (RTK)Children’s Television Station (DTV)TV HerpceTV Most

Project:CMB ProductionsUNICEF

Funding:Canadian InternationalDevelopment Agency (CIDA)The German Institute for ForeignCultural Relations (ifa) The Netherlands Ministry ofForeign Affairs Organization for Security andCooperation in Europe (OSCE)UNICEF

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Alam S imsim

Airing daily on Egyptian television since 2000 and throughoutNorth Africa and the Middle East via satellite since 2003, thisEgyptian adaptation of Sesame Street mobilizes media in theservice of children with a particular emphasis on educating girls.An extensive outreach program deepens and extends the on-airmessages, with recent research documenting gains in the areasof health, hygiene, and nutrition among children, parents, care-givers, and families.

Par tners

Broadcast:Egyptian TelevisionMiddle East Broadcasting Corporation (MBC)

Project:AlKarma Edutainment Egyptian Ministry of Education

Funding:United States Agency for International Development (USAID)

S ina i , Egypt

>

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Sesame S t reet Japan

In September 2004, Japanese children and families, who had longbenefited from the United States version of Sesame Street, celebratedthe launch of their own entirely original coproduction. Using natureas a thematic springboard for showcasing Japan's unique culturalheritage, the series helps Japanese children use their imagination,think independently, appreciate diversity, and learn simple Englishphrases.

Par tners

Broadcast:TV TOKYO Corporation

Project:ASATSU-DK Inc.Kyodo Television, Ltd.Nikkeisha, Inc.Odyssey Communications, Inc Sesame Street Partners Japan Television Tokyo Broadband Entertainment Inc.We’ve, Inc.

Locat ion to come

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Jossure , BangladeshS is impur

Set to launch in April 2005, this widely anticipated adaptation ofSesame Street will provide access to educational opportunity forall Bangladeshi children. And to help build the capacity to developand sustain such programming for generations to come, theWorkshop will forge partnerships with local stakeholders, includinggovernment ministries, development agencies, foundations, civilsociety groups, corporations, educators, and broadcasters.

Par tners

Broadcast:Bangladesh Television

Project:Nayantara Communications

Funding:United States Agency for International Development (USAID)

>

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Dragon Ta les

The number-one rated television show for preschoolers in theUnited States for two years running,* Dragon Tales helps childrenhere and around the world with the “three Rs” of early childhoodeducation: resilience, relationships, and readiness. New this yearare 13 original episodes using folk stories, music and streetgames to highlight the Hispanic American experience.

Par tners

Broadcast:PBS

Project:Sony Pictures Television

Funding:Corporation for Public BroadcastingKellogg USA Inc.US Department of Education (Ready-to-Learn)

* Source: Nielsen, PBS PP, AA% K2-5, average of September 2002-August 2003 and September 2003-August 2004, ratings may include viewing to more than one telecast per program per day; GalaxyExplorer/PNF, AA% K2-5, total U.S. coverage, 08/26/02-08/31/03 and 09/01/03-08/29/04, 6A-6P;Dragon Tales versus all regularly scheduled children's programs 6AM-6PM, 120+ episodes M-F.

Houston, Texas

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Phi lde lph ia , Pennsy lvan iaHappy, Heal thy, Ready for School

Part of the “PNC Grow Up Great” program funded by The PNCFinancial Services Group, Inc., this educational outreach initiativeis a collection of print materials and a DVD designed to improveschool readiness for children up to age 5 in Pennsylvania, Delaware,Kentucky, New Jersey, and Ohio.

Par tners

Funding:The PNC Financial Services Group, Inc.

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Corporations, Foundations, Government, and Donor Agencies

$1,000,000 +

Campbell Soup Company

Corporation for Public Broadcasting

European Union

Federal EmergencyManagement Agency

The Kahanoff Foundation

Kellogg USA, Inc.

McDonald’s Corporation

National Science Foundation

Nestlé Food LLC

The PNC Financial Services Group, Inc.

Prudential Foundation

The Quaker Oats Company

Charles H. Revson Foundation

SANLAM Life Insurance Limited

South African BroadcastingCorporation

Unique Vacations, Inc., worldwide representatives for Beaches Resorts

U.S. Agency for InternationalDevelopment (USAID)

U.S. Department of Education

$500,000 - $999,999

The Atlantic Philanthropies

The Ford Foundation

The NetherlandsMinistry of Foreign Affairs

Bernard van Leer Foundation

$250,000 - $499,999

American Institutes for Research

Merrill Lynch & Co., Foundation, Inc.

Joseph and Harvey MeyerhoffFamily Charitable Funds

NAMM (International MusicProducts Association)

Stavros S. Niarchos Foundation

$100,000 - $249,999

Foreign Affairs Canada

Organization for Security &Cooperation in Europe (OSCE)

W.L.S. Spencer Foundation

United Nations Children’s Fund(UNICEF)

$50,000 - $99,999

Canadian InternationalDevelopment Agency (CIDA)

Fisher-Price

Merrill Lynch & Co., Inc.

National Conference forCommunity and Justice

Nexsam Technologies

Sony Music Entertainment

Anonymous

$25,000 - $49,999

Bank of America

The German Institute for ForeignCultural Relations (ifa)

The Double H Foundation

The Helen Hotze HaasFoundation

ICTV

Markle Foundation

McKinsey & Company, Inc.

Nickelodeon Networks

RAND

Alan B. Slifka Foundation

Starbucks Coffee Company

StorageTek

Toys "R" Us Children’s Fund, Inc.

$15,000 - $24,999

The Cole Family Foundation

The Zanvyl and Isabelle Krieger Fund

Macy’s Parade

The Parenting Group

Simpson Thacher & Bartlett LLP

Thirteen/WNET

VEE Corporation

Wolfensohn Family Foundation

$7,500 - $14,999

AEA Investors

American Greetings Corporationand the Employees of AmericanGreetings Corporation

Amtrak

Lisbeth R. Barron on behalf ofBear, Stearns & Co. Inc.

Busch EntertainmentCorporation/ Sesame Place

The Gina and David ChuFoundation

Davis Wright Tremaine LLP

Deloitte

The Walt Disney Company

Foote Cone & Belding

HIT Entertainment plc

J.P. Morgan Chase & Co.

Kaufman Astoria Studios

MGM Home Entertainment

New School University

Novell, Inc.

Prudential Financial

Public Broadcasting Service

Random House Children’s Books

Sidley Austin Brown & Wood

Transworld Television Corporation

UBS

$2,500 - $7,499

The Bloomingdale’s Fund of theFederated Department StoresFoundation

The Mark & Anla ChengKingdon Foundation

The Children’s Health Fund

Credit Suisse First Boston

Hasbro, Inc.

HBO

Investcorp International Inc.

Kauff McClain & McGuire LLP

The Leonard and Evelyn LauderFoundation

MetLife Foundation

National Geographic Society

The Pierre and Pamela Omidyar Fund

Peninsula Community Fund

Piper Rudnick LLP

Steven Rattner and P. MaureenWhite Foundation

Ross Stores, Inc.

Scholastic

Sony Corporation of America

Warner Brothers ConsumerProducts

Waste Management CharitableFoundation

We Are Family Foundation

$1,000 - $2,499

The Archstone Partnerships

Bloomingdale’s

Broadway Video

James E. and Diane W. BurkeFoundation, Inc.

KL Felicitas Foundation

Fox Family Foundation

Sesame Workshop gratefully acknowledges the generous support ofpartners around the world who share our vision. Their commitmentmakes our endeavors on behalf of children possible and enables us to bring our mission to life.

Major Suppor ters

Friedman Kaplan Seiler &Adelman LLP

Hallmark Cards, Inc.

The Jim Henson Company

The Jim Henson Legacy

Leventhal, Senter & Lerman PLLC

Magno Sound & Video

Mele Companies, Inc.

Morgan, Lewis & Bockius LLP

Proskauer Rose LLP

Robinson Lerer & Montgomery, LLC

Rosie’s For All Kids Foundation

WNYC Radio

Anonymous

Individuals

$50,000 - $99,999

Joan Ganz Cooney and Peter G. Peterson

Vincent and Anne Mai

$25,000 - $49,999

Jane Hartley and Ralph Schlosstein

$15,000 - $24,999

Richard Beattie

Toni and Dwight Bush

Judy and Steven Gluckstern

Jessica and Jerry Seinfeld

Scott and Lisa Stuart

Rodney and Sukey Wagner

$7,500 - $14,999

Afsaneh Beschloss

Rachel Hines and Michael Cembalest

Margaret Loesch and The Hatchery, LLC

David Westin

Anonymous

$2,500 - $7,499

David and Mary Boies

Marcia M. Carlucci

Jessica Reif Cohen and Bob Cohen

Edith Cooper and Robert Taylor

Irwin and Concepción Federman

Theodore J. Forstmann

Robert Goldberg and Betsy MacIsaac

Martín Gómez

Mr. and Mrs. Henry Grunwald

Mr. and Mrs. Murray Halpern

Cheryl and Fred Halpern

Kati Marton and Richard Holbrooke

Ann and Vernon Jordan

Gary E. Knell and Kim Larson

Deborah Slaner Larkin

Evelyn G. Lipper

Sanford M. Litvack, Esq.

Jamie and Michael Lynton

Catie and Donald B. Marron

Maurice and Elizabeth Myers

Lionel I. Pincus and HRH Princess Firyal

David Rockefeller

Jeanne and Nicolas Rohatyn

Wendy and Eric Schmidt

Kenneth and Marisa Starr

Preston Robert Tisch

Anastasia Vournas and J. William Uhrig

Joanne and Cyrus Walker

Jeffrey and Lynn Watanabe

The Honorable Kimba M. Woodand Frank E. Richardson

Ann and Bill Ziff

Anonymous

$1,000 - $2,499

Maya Ajmera

Mr. and Mrs. Luis Alvarez

Gigi Arledge

Joanna Barsh and David Garbasz

Candice Bergen and Marshall Rose

Mr. and Mrs. John Bolger

Marie Brenner and Ernest Pomerantz

Steve and Gretchen Burke

Daniel Burstein and Julie O’Connor

Christopher B. Cerf

Connie Chung and Maury Povich

Kevin Clash

Patricia Cook, Ph.D.

Peggy Dulany

Mr. and Mrs. Lewis Eisenberg

Barbara D. Finberg

Mark Gallogly

Sarah and Seth Glickenhaus

Agnes Gund and Daniel Shapiro

Phyllis Harrison-Ross, M.D.

Cheryl Henson and Ed Finn

Anne and John Herrmann

Peter Jennings and Kayce Freed

Carol Kane

Mr. and Mrs. Hans W. Kertess

Mr. and Mrs. Brad Klatt

Mr. and Mrs. Murray Kushner

Karyn and Kevin T. Lamb

Joan Lombardi

Dr. Loretta Long

Lili Lynton and Michael Ryan

Mona Mangan

Cynthia McFadden

Mr. and Mrs. Lloyd Morrisett

George B. and Elinor Bunin Munroe

George and Joan Newcombe

Hannah Pakula

Kimberly and Jean Putzer

Deborah Roberts and Al Roker

Senator and Mrs. John D. Rockefeller IV

Mr. and Mrs. Felix Rohatyn

Dr. and Mrs. Mitchell Rosenthal

Glenn Ross

Lizzie and Jeffrey Rudnick

Richard E. Salomon

Julienne Scanlon

Phil Schlein

Frances Schultz

Kenneth W. Schwab

Steven Shamah

Neal Shapiro and Juju Chang

Mr. and Mrs. Peter Solomon

Melissa and Robert Soros

George Stephanopoulos andAlexandra Wentworth

Ben Stiller

Rose Styron

Paul A. Volcker

Ellen Wartella

Alan and Barbara Washkowitz

Mr. and Mrs. LesterWunderman

$500 - $999

Susan Akbarpour and Faraj Aalaei

Ralph Bartel

David Brown and Helen Gurley Brown

Amanda Burden

Amy Entelis

Dr. and Mrs. Yale Fisher

Clarence Fogelstrom

Mr. and Mrs. Steven Goldby

Gould Shenfeld Family

Linda and Morton Janklow

Sheryl Leach

Gina Maya and Richard Capelouto

Mr. and Mrs. Chris Ream

Marcia Robbins-Wilf

John G. Roche

Robert C. Sheehan

Mr. and Mrs. Kevin Steinberg

Annalee Van Kleeck

For more information about how you can support Sesame Workshop please contact:

Jaime GreenbergVice President, Philanthropic Development(212) 875-6451

Anita StewartVice President, Corporate Sponsorship(212) 875-6889

Or visit:sesameworkshop.org/edonations

Major Suppor ters

Sesame Workshop 2004 Annual Repor t 332004 Annual Repor t Sesame Workshop 32

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Sesame Workshop ’s F inanc ia l S t ra teg ies

To sustain long-term viability and support its educational initiatives here at home and around the world, Sesame

Workshop employs three financial strategies. The first is to assemble public and private funding partnerships.

This strategy was applied from the start with Sesame Street, the Workshop’s flagship preschool series, whose

initial funding partners included the US Department of Education, the Corporation for Public Broadcasting, the

Carnegie Corporation of New York, and the Ford Foundation. Over the years, funding alliances have been formed

with a variety of government, corporate, and philanthropic partners to support other mission-related endeavors.

Sesame Workshop’s second financial strategy depends on self-generated revenue. In this arena, the organization

has successfully undertaken a range of activities that enable it to generate revenue while remaining true to its

educational mission. These activities include domestic and foreign distribution of local-language television programs,

international coproductions, global product licensing, book and magazine publishing, and overseas syndication

of our television series Sesame Street; Dragon Tales; Sagwa, The Chinese Siamese Cat; Out There; and Play With

Me Sesame.

The Workshop’s third financial strategy, similar to other nonprofit educational institutions, is to maintain an invest-

ment portfolio to ensure the organization’s long-term financial viability and to provide financing for educational

activities that are otherwise difficult to fund.

Sesame Workshop’s future financial vitality depends on its abilities to develop new sources of revenue for current

and future educational projects. Therefore, the Workshop has stepped up its efforts to secure funding from

government agencies and institutional and individual donors. In a competitive marketplace dominated by large,

for-profit media companies, this shift in funding strategy is the most effective way to support the Workshop’s

programs and initiatives for years to come.

Management D iscuss ion and Analys i s

Sesame Workshop 2004 Annual Repor t 352004 Annual Repor t Sesame Workshop 34

pub l i c suppor t and revenue

17%institutional &individual giving

9%government &other agencies

6%program reimbursements

68%net from licensing

L i cens ing to Suppor t Educat iona l P rograms

As a nonprofit organization, Sesame Workshop relies not only on philanthropic support but also on the income from the sales of Sesame Street and other Workshop products to fund educational programs that help children everywhere learn and grow.

We partner with best-in-class licensees that believe in our brands and share our vision. Long-term and committed partners like SonyWonder, Fisher-Price, Random House, The Parenting Group (SesameStreet Magazine), Busch Entertainment Corporation (Sesame Place), and VEE Corporation (Sesame Street Live), are essential to advancing our educational initiatives around the world.

L i scensees

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Sesame Workshop 2004 Annual Repor t 372004 Annual Repor t Sesame Workshop 36

The second significant transaction in fiscal year 2003 was the prepayment of the $56.0 million outstanding loan due

to EM.TV/Henson at a discount rate of 11.2%, resulting in a nonoperating gain of $5.2 million. This loan was part

of the Workshop’s acquisition of the Muppet characters of Sesame Street from EM.TV/Henson in fiscal year 2001.

In fiscal year 2004, Total Assets increased by $2.2 million. Cash and Marketable Securities rose by $15.7 million,

or 10%, primarily due to investment income of $9.1 million. This increase was partially offset by lower programs in

process of $4.0 million due to prepaid program costs recorded as expenses in 2004, and lower intangible assets

due to the annual amortization of $6.9 million.

In fiscal year 2004, Total Liabilities were reduced by $3.8 million based on lower accrued expenses and accounts

payable as compared to fiscal year 2003.

For the year ending June 30, 2004, Total Net Assets on our Consolidated Statement of Activities were $217.6 mil-

lion, $6.0 million higher than the $211.6 million for the year ending June 30, 2003. The fiscal year net operating

loss was $1.8 million, and interest expense was $1.2 million. This net loss of $3.1 million was more than offset by

investment income of $9.1 million.

S ign i f i cant S t ra teg i c Transac t ions

In December 2000, the Workshop acquired the Muppet characters of Sesame Street from the Jim Henson

Company, a subsidiary of EM.TV & Merchandising AG. Full ownership of the Muppet characters of Sesame Street

allows for greater creative freedom, control of content, and enhanced revenue opportunities. In September 2002,

the Workshop sold its 50% ownership interest in the Noggin joint venture to its partner, MTV Networks/Viacom,

providing capital to expand its mission internationally, remain strong in a highly competitive domestic market-

place, and retire a portion of existing debt.

The following statements are an extract of Sesame Workshop’s audited financial statements for the fiscal years

2004 and 2003.

Management D iscuss ion and Analys i s

programexpenses

28%international

production

10%research

5%outreach

48%domestic

production

6%interactivemedia

2%creativedevelopment

1%publishing

Management D iscuss ion and Analys i s

F i sca l Year 2004 F inanc ia l Cond i t ions and L iqu id i t y

The financial condition of Sesame Workshop continued to be strong in fiscal year 2004. The Consolidated

Statement of Activities reflects an operating loss of $1.8 million, which is $0.7 million higher than fiscal year 2003.

Revenues increased by $3.8 million, or 4%, due to stronger global product licensing, primarily from higher sales

in Japan. There also was a onetime improvement in fiscal year 2004 from the impact of a change in the compa-

ny’s method of accounting for guaranteed licensing revenue. These increases were partially offset by reduced

grant revenues, a decline in cable retransmission royalties received from PBS, and international program sales,

which were higher in fiscal year 2003 due to the launch of Out There.

Expenses increased by $4.5 million, or 5%, in fiscal year 2004 compared to fiscal 2003. Program production

costs were up $2.4 million, or 7%, primarily due to increased production activity such as Sesame Stories, the

Israel-Palestine-Jordan coproduction. International marketing and development expenses were higher based

on expanded licensing initiatives and the establishment of an International Business Development group respon-

sible for coordinating all projects in foreign countries. Marketing and promotion costs were up due to enhanced

Sesame Street promotion and the cost of promotional materials related to sponsored outreach projects. In addition,

Corporate Affairs, Education, and Development costs increased due to the launch of a direct-mail fund-raising

campaign.

Two significant transactions affected the financial position of the company in fiscal year 2003. The first was the

sale of the Workshop’s 50% interest in Noggin to MTV Networks in September 2002. The transaction resulted in

1) a $61.2 million nonoperating gain and 2) an imputed deferred royalty value of $5.4 million attributed to the

continued use of Sesame Workshop’s program library by Noggin for a three-year term commencing with the

sale. Of this, $1.8 million was reflected in Program Sales and Royalties revenue in each of the fiscal years 2003

and 2004, while the remaining amount is included in Deferred Program and Product License Revenues on the

Consolidated Statement of Financial Position and will be recognized over the remaining term.

expenses

73%programs

13%administrative

9%amortization

5%fund-raising

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Conso l idated S tatement o f F inanc ia l Pos i t ion For the years ended June 30 (000s omi t ted)

‘04 ‘03

Assets

Cash and Short-Term Investments $ 16,824 $ 3,147

Receivables

Programs and Product Licenses and Contracts in Support of Programs,

Net of Allowance for Doubtful Accounts 21,269 20,328

Grants 2,975 5,522

24,244 25,850

Programs in Process 6,693 10,718

Marketable Securities 152,325 150,312

Intangible Assets 113,585 120,530

Fixed Assets 9,298 8,619

Other Assets 2,320 3,878

Total Assets $ 325,289 $ 323,054

Liabilities and Net Assets

Accounts Payable and Accrued Expenses $ 24,134 $ 27,550

Deferred Program and Product License Revenues 18,434 18,465

Deferred Rent Payable 5,080 5,466

Debt Payable 60,000 60,000

Total Liabilities 107,648 111,481

Net Assets

Unrestricted 217,143 207,412

Temporarily Restricted 498 4,161

Total Net Assets 217,641 211,573

Total Liabilities and Net Assets $ 325,289 $ 323,054

Sesame Workshop 2004 Annual Repor t 392004 Annual Repor t Sesame Workshop 38

Conso l idated S tatement o f Act i v i t ies For the years ended June 30 (000s omi t ted)

‘04 ‘03

Revenues

Program Support $ 23,960 $ 24,962

Program Sales and Royalties 6,809 10,900

Publishing and Licensing 66,043 57,185

Total Operating Revenues 96,812 93,047

Expenses

Program Production 34,939 32,490

Publishing, Product Licensing, Development, and Distribution 19,327 17,365

Interactive Media 2,616 4,047

Corporate Affairs, Education, and Development 15,652 13,145

General and Administrative 19,169 19,798

Amortization 6,945 7,361

Total Operating Expenses 98,648 94,206

Operating Loss (1,836) (1,159)

Net Investment Income 9,124 4,123

Equity Earnings – 967

Interest Expense (1,217) (3,023)

Other Nonoperating (Losses) Income (3) 67,235

Increase (Decrease) in Net Assets $ 6,068 $ 68,143

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Board of Trus tees

Mr. Vincent A. MaiChairman of the BoardSesame WorkshopChairmanAEA Investors, Inc.

Mrs. Joan Ganz CooneyCo-Founder and Chairman of the Executive CommitteeSesame Workshop

Ms. Joanna BarshDirectorMcKinsey & Company, Inc.

Richard I. Beattie, Esq.ChairmanSimpson Thacher & Bartlett LLP

Mrs. Afsaneh M. BeschlossPresident and Chief Executive OfficerRock Creek Group

Mr. David C. ColeChairman, President and Chief Executive OfficerMaui Land and Pineapple Co., Inc.

Mr. Martín GómezPresident and Chief Executive OfficerUrban Libraries Council

Ms. Jane HartleyChief Executive OfficerG7 Group, Inc.

Ms. Rachel HinesFormer Managing Director, J.P. Morgan Chase & Co. Inc.Member, Council on Foreign Relations

Mr. Gary E. KnellPresident and Chief Executive OfficerSesame Workshop

Sanford M. Litvack, Esq.PartnerHogan & Hartson L.L.P.

Ms. Margaret LoeschManaging PartnerThe Hatchery

Mr. Lloyd N. MorrisettCo-Founder and Chairman Emeritus of the BoardSesame Workshop

Dr. Kyle PruettClinical Professor, Child Psychiatry and Nursing Yale University School of Medicine

Dr. Linda G. RobertsNational ConsultantFormer Director, Office of Educational TechnologyU.S. Department of Education

Mr. Richard Steadman

Mr. Rodney B. WagnerFormer Vice Chairman of the BoardJ.P. Morgan Chase & Co. Inc.

Dr. Ellen WartellaExecutive Vice President and ProvostUniversity of California - Riverside

Jeffrey N. Watanabe, Esq.PartnerWatanabe, Ing, Kawashima & Komeiji

Mrs. Joan Ganz Cooney

Mr. Vincent A. Mai

Sesame Workshop 2004 Annual Repor t 412004 Annual Repor t Sesame Workshop 40

Conso l idated S tatement o f Cash F low For the years ended June 30 (000s omi t ted)

‘04 ‘03

Cash Flows from Operating Activities:

Increase (Decrease) in Net Assets $ 6,068 $ 68,143

Adjustments to Reconcile (Decrease) Increase in Net Assets

to Net Cash (Used in) Provided by Operating Activities

Depreciation and Amortization 9,245 9,960

Amortization of Programs in Process 20,548 12,622

(Increase) in Net Unrealized Appreciation on Marketable Securities (8,288) (1,478)

Loss (gain) on Sale of Marketable Securities 243 (178)

(Gain) on Disposal of Joint Venture — (61,234)

(Gain) on Early Extinguishment of Debt — (5,152)

(Gain) on Disposal of Magazine Subscriber Lists — (852)

(Gain) on Investment in Joint Venture — (967)

Decrease (Increase) in Receivables 1,606 (8,954)

(Increase) in Programs in Process (16,523) (11,195)

(Increase) in Other Assets 1,387 (1,971)

(Decrease) Increase in Accounts Payable and Accrued Expenses (3,416) 5,245

(Decrease) Increase in Program and Product License Revenues (31) 1,597

(Decrease) in Deferred Rent Payable (386) (385)

Net Cash Provided by Operating Activities 10,453 5,201

Cash Flows from Investing Activities

Additions to Property and Equipment (2,808) (1,728)

Purchases of Marketable Securities (43,138) (113,598)

Proceeds from the Sale of Marketable Securities 49,170 54,297

Proceeds from the Sale of Joint Venture Interest — 93,788

Net Cash Provided by Investing Activities 3,224 32,759

Cash Flows From Financing Activities

(Payments) on Note Payable — (39,191)

Net Cash (Used in) Financing Activities — (39,191)

Cash (Used in) Discontinued Operations — (72)

Net Increase (Decrease) in Cash and Short-Term Investments 13,667 (1,303)

Cash and Short-Term Investments, Beginning of Period 3,147 4,450

Cash and Short-Term Investments, End of Period $ 16,824 $ 3,147

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©2005 Sesame Workshop.

Sesame Workshop ® Sesame Street ® and internat ional Sesame Street coproduct ions, and al l of thei r associated characters , t rademarks, and design e lements are owned and l icensed by Sesame Workshop. ©2005 Sesame Workshop. Al l r ights reserved.

©2005 Sesame Workshop/Columbia Tr is tar Telev is ion Dist r ibut ion. “Dragon Tales” and i ts logo are t rademarks of Sesame Workshop and ColumbiaTr is tar Telev is ion Dist r ibut ion. Al l r ights reserved. Funded in part by a grant f rom the Corporat ion for Publ ic Broadcast ing through funds f rom the U.S. Department of Educat ion.

©2005 CinéGroupe Sagwa Inc. Characters and Or ig inal Story ©2005 Amy Tan. I l lust rat ions ©2005 Gretchen Schie lds. “Sagwa” and i ts logo are t rademarks of CinéGroupe Sagwa Inc. Al l r ights reserved. Sagwa, The Chinese S iamese Cat is produced by CinéGroupe Sagwa Inc. in associat ion with Sesame Workshop, based on the book wr i t ten by Amy Tan and i l lustrated by Gretchen Schie lds.

Out There ™ and associated characters , t rademarks, and design e lements are owned and l icensed by Sesame Workshop. ©2005 Sesame Workshop. Al l r ights reserved

Muppets ™ is a t rademark of Muppets Holding Company, LLC.

2004 Annual Repor t Sesame Workshop 42

Execut ive Management

Gary E. KnellPresident and Chief Executive Officer

H. Melvin MingChief Operating Officer

Karen GruenbergExecutive Vice President, Content

Liz KalodnerExecutive Vice President and GeneralManager, Global Consumer Products

Michael LombardiExecutive Vice President,Chief Financial Officer

Janet RobertsonExecutive Vice President, InternationalBusiness Development

Daniel VictorExecutive Vice President, Legal andBusiness Affairs, General Counsel andSecretary

Sherrie Rollins Westin Executive Vice President, CorporateAffairs, Education and Development

Gary E. Knell

H. Melvin Ming

Karen Gruenberg

Sherrie Rollins Westin

Daniel VictorMichael Lombardi

Janet Robertson

Liz Kalodner

Many thanks to staff and partners who contributed these great candid shots of children

in our coproducing countries around the world: Ginger Brown; Nada Elattar; Joe Fisher,

RAND Initiative for Middle Eastern Youth; Robert Knezevic; Linda Goldstein Knowlton;

Nicole Toutounji, UNICEF.

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00

O n e L i n c o l n P l a z a N e w Y o r k , N e w Y o r k 1 0 0 2 32 1 2 . 5 9 5 . 3 4 5 6 w w w . s e s a m e w o r k s h o p . o r g

“…in our country which has beentorn by violence, your program[Sippuray Sumsum] could possiblybe the last one of i ts kind to por-tray people as human beings….”

– I s r a e l i f a t h e r

S i p p u r a y S u m s u m i s t h e I s r a e l i a d a p t a t i o n o f S e s a m e S t r e e t

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< Brosh I s rae l

Sesame S t reet works .

Among the more than 1,000 studies on record are those telling us that

Sesame Street reaches children in every demographic group, that preschoolers

who watch are more likely to show signs of emerging literacy and numeracy

skills than nonviewers, and that the Sesame Street advantage lasts: Teens who

watched as children had better grades in high school, read more books for

pleasure, placed higher value on academic achievement, and expressed less

aggressive attitudes than those who watched rarely or not at all.

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