Update - DreamWorks Animation Announces 'Madagascar 2'

Update - DreamWorks Animation Announces 'Madagascar 2'

Ben Stiller, Chris Rock, and Jada Pinkett Smith to Return in Starring Roles

PASADENA, Calif., Sept. 14 /PRNewswire-FirstCall/ -- DreamWorks Animation CEO Jeffrey Katzenberg announced today that the studio will produce a sequel to the computer-animated comedy "Madagascar," which has now passed the $500-million mark at the worldwide box office, making it the company's most successful original movie ever.

Katzenberg also announced that Ben Stiller, Chris Rock and Jada Pinkett Smith, who starred in the original "Madagascar" as Alex the Lion, Marty the Zebra and Gloria the Hippo, respectively, will be reprising their roles. He said he was looking forward to other original cast members returning to their roles for the sequel.

The sequel will once again be produced by Mireille Soria and co-directed by Eric Darnell and Tom McGrath.

Speaking at the annual Merrill Lynch Media & Entertainment Conference in Pasadena, Mr. Katzenberg said, "As a result of its tremendous box office success, the potential to tell a new chapter in its story and the popularity of the film's characters, we are excited to announce that we are making 'Madagascar' our second company franchise -- along with 'Shrek.' We will release a theatrical sequel in 2008."

In addition to the sequel, DreamWorks Animation will be giving the scene-stealing "Madagascar" Penguins the chance to take top billing in a direct-to-video release due out in 2009. The company has also produced its first mini-movie: a ten-minute film featuring the Penguins, which will play in theatres this fall alongside the studio's main theatrical release: "Wallace & Gromit: The Curse of the Were-Rabbit," which opens October 7th in theaters nationwide.

"Madagascar" opened on May 27 and generated a domestic box office of approximately $192 million. It continues to perform extremely well internationally, and currently ranks as one of the top five computer-animated movies of all time.

DreamWorks Animation SKG (NYSE:DWA) is devoted to producing high-quality family entertainment through the use of computer-generated (CG) animation. Utilizing world-class creative talent and state-of-the-art technological capabilities, the company is committed to making two computer-animated feature films a year that appeal to a broad movie-going audience.

This material includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Information concerning our plans, strategies and prospects as well as the release dates of films and anticipated talent, directors and storyline for such films constitute forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections about the industry in which we operate, management's beliefs and assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. The production, completion and distribution of animated feature films for our theatrical, home video and direct-to-video releases are subject to a number of uncertainties, including delays and increased expenditures due to creative problems, technical difficulties, talent availability, accidents, natural disasters or other events beyond our control. Because of these uncertainties, the projected costs of an animated feature film at the time it is set for production may increase, the date of completion may be substantially delayed or the film may be abandoned due to the exigencies of production. Delays in production may also result in a film not being ready for release at the intended time and postponement to a potentially less favorable time, which could result in lower gross receipts for that film. In extreme cases, a film in production may be abandoned or significantly modified (including as a result of creative changes) after substantial amounts have been spent, causing the write-off of expenses incurred with respect to the film. Our actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of DreamWorks Animation. These risks and uncertainties include: audience acceptance of our films, our dependence on the success of a limited number of releases each year, the increasing cost of producing and marketing feature films, piracy of motion pictures, the effect of rapid technological change or alternative forms of entertainment and our need to protect our proprietary technology and enhance or develop new technology. For a further list and description of such risks and uncertainties, see the reports filed by us with the Securities and Exchange Commission (SEC), including our annual report on Form 10-K for fiscal year 2004 and our quarterly reports on Form 10-Q for the first and second quarters of 2005. DreamWorks Animation is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

Source: DreamWorks Animation SKG

CONTACT: Diana Loomis, +1-212-588-6141, for DreamWorks Animation SKG

Web site: http://www.dreamworksanimation.com/

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