INTEL, DREAMWORKS ANIMATION FORM STRATEGIC ALLIANCE TO REVOLUTIONIZE 3-D FILMMAKING TECHNOLOGY

SANTA CLARA and GLENDALE, Calif. – July 8, 2008 – Intel Corporation and DreamWorks Animation SKG, Inc. (NYSE: DWA) today announced they have formed a strategic alliance aimed at revolutionizing 3-D filmmaking technology, beginning with Monsters vs. Aliens, which is slated for a domestic release date of March 27, 2009. As previously announced, DreamWorks Animation has committed to producing all of its feature films in stereoscopic 3-D beginning next year.

The strategic alliance will take advantage of Intel’s visual computing products and tools and DreamWorks Animation’s expertise in content creation to advance the in-theater entertainment experience.

To meet the increased demands of creating 3-D animated feature films, Intel will provide DreamWorks Animation with the latest high-performance processing technologies, including future chips with multiple processing cores. Intel software engineers will help to optimize DreamWorks’ applications for these advanced processors. By converting its computing infrastructure to an Intel-based system, DreamWorks Animation will enable its artists to work with new, state-of-the-art 3-D authoring tools to render higher quality images more quickly and to modify them with greater ease.

“This alliance unites the best in computer-generated moviemaking and computing performance to deliver a new level of in-theater entertainment,” said Paul Otellini, Intel president and CEO. “The high level of inventiveness at DreamWorks Animation has positioned it as a leader in entertainment technology, and incorporating the Intel platform allows them to deliver incredibly rich digital 3-D content to the big screen – raising the bar for the industry as a whole.”

“Our objective is to significantly heighten the movie going experience using DreamWorks Animation’s ground-breaking 3-D filmmaking tools,” said Jeffrey Katzenberg, CEO of DreamWorks Animation. “Technology plays a significant role in enabling our artists to tell great stories. By utilizing Intel’s industry-leading computing products, we will create a new and innovative way for moviegoers to experience our films in 3-D.”

In addition to working with DreamWorks Animation to enhance the in-theater entertainment experience for consumers, Intel will work to develop and promote next-generation 3-D viewing experiences and technology on a range of other platforms, including home theater, personal computers, video games, online environments and mobile devices.

About Intel
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About DreamWorks Animation SKG

DreamWorks Animation is principally devoted to developing and producing computer generated, or CG, animated feature films. With world-class creative talent, a strong and experienced management team and advanced CG filmmaking technology and techniques, DreamWorks Animation makes high quality CG animated films meant for a broad movie-going audience. The Company has theatrically released a total of sixteen animated feature films, including Shrek, Shrek 2, Shark Tale, Madagascar, Over the Hedge, Shrek the Third, Bee Movie and Kung Fu Panda. Madagascar: Escape 2 Africa opens in theaters on Nov. 7 and Monsters vs. Aliens, the company’s first film produced in 3-D, is slated for a domestic release date of March 27, 2009.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company’s plans, prospects, strategies, proposals and our beliefs and expectations concerning performance of our current and future releases and anticipated talent, directors and storyline for our upcoming films and other projects, constitute forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections about the industry in which we operate and management's beliefs and assumptions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. 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 SKG, Inc. 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. In addition, due to the uncertainties and risks involved in the development and production of animated feature projects, the release dates for the projects described in this document may be delayed. For a further list and description of such risks and uncertainties, see the reports filed by us with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our most recent quarterly reports on Form 10-Q. 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.