Reader's Digest has signed an agreement with Disney Publishing Worldwide to develop and distribute high-end children's novelty books. The new titles will feature a variety of Disney characters including Disney "princesses," such as Cinderella and Snow White, plus Winnie the Pooh. All books will be packaged with related items.

RD will publish the first title under the agreement, Sweet Dreams, Pooh, next fall; Pooh will include a boxed set of books and plush figures and be priced at $29.99. Harold Clarke, v-p of trade publishing for RD, said he expects to do between 10 to 20 books annually. RD will sell the books through all of its direct marketing channels, and Simon & Schuster, which distributes RD's children's line to trade accounts, will market the books to traditional retailers.