Activision and DreamWorks Animation SKG Launch New Multi-Year, Multi-Property Licensing Deal

SANTA MONICA, Calif. and GLENDALE, Calif., Nov 16, 2005: Activision, Inc. (Nasdaq: ATVI) and DreamWorks Animation SKG (NYSE: DWA) jointly announced today that the companies have agreed to a new long-term, broad-based strategic alliance. The companies signed a multi-year agreement which grants Activision the exclusive video game rights to upcoming feature films from DreamWorks Animation.

Under the terms of the agreement, Activision will develop and publish video game products based on DreamWorks Animation's upcoming movies, including "Bee Movie" and "Kung Fu Panda," as well as films currently in development, including "Rex Havoc" and "How to Train Your Dragon." The deal also extends Activision's video game rights beyond "Shrek 3" to include potential future films in the "Shrek" franchise.

Activision has secured the exclusive worldwide video game publishing rights for all current and future console platforms, the PC and hand-held devices. The company has also secured the rights to develop additional games based on the properties during non-film years, as well as the right to publish games based on each property's sequel.

"Our association with DreamWorks has resulted in some of the most critically acclaimed and successful movie-based video games ever," stated Robert Kotick, Chairman and CEO, Activision, Inc. "This announcement enables us to continue to build on our strong creative collaboration and underscores Activision's ongoing commitment to developing exceptional games based on the highest quality intellectual properties and brands."

Jeffrey Katzenberg, CEO of DreamWorks Animation SKG said, "Activision is a market leader in developing computer-generated movie properties into video game franchises. Working with Activision, we hope to deliver an unprecedented level of collaboration between the movie and the video game."

Additionally, Activision is currently developing games based on "Over the Hedge," which will be released in May 2006, and "Shrek 3," which is slated for release in 2007. The company also holds the right to develop games based on the recently announced film "Madagascar 2," which is slated for release in 2008.

Under its current agreement with DreamWorks Animation, Activision has released video games across multiple platforms based on "Shrek 2," "Shark Tale," and "Madagascar." Collectively to date, these titles have shipped more than 10 million units across multiple platforms worldwide. Activision's "Shrek 2" video game was the #1 best-selling children's video game in the U.S. for calendar 2004, according to NPD.

"The new generation of gaming platforms will help us expand our computer-generated movies into interactive entertainment like never before," said Anne Globe, head of Worldwide Consumer Products and Promotions for DreamWorks Animation. "We look forward to working with Activision to extend our stories and characters into rich worlds of interactive entertainment."

Mike Griffith, President and CEO, Activision Publishing, Inc., added, "Activision looks forward to an even closer working collaboration with the production teams at DreamWorks Animation. Our strong relationship has allowed us to deliver interactive entertainment experiences that remain true to the films while bringing these extraordinary stories to life through the visually immersive nature of interactive entertainment."

About DreamWorks Animation SKG

DreamWorks Animation SKG (NYSE: DWA) 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.

About Activision, Inc.

Headquartered in Santa Monica, California, Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted net revenues of $1.4 billion for the fiscal year ended March 31, 2005.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia, Scandinavia, Spain and the Netherlands. More information about Activision and its products can be found on the company's World Wide Web site, which is located at www.activision.com.

The statements made in this press release that are not historical facts are "forward-looking statements". These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The Company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward-looking statements. Such factors include, without limitation, product delays, retail acceptance of our products, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions, integration of recently acquired subsidiaries and identification of suitable future acquisition opportunities. These important factors and other factors that potentially could affect the Company's financial results are described in our filings with the Securities and Exchange Commission, including the Company's most recent Annual report on Form 10-K and Quarterly Report on Form 10-Q. Readers of this press release are referred to such filings. The Company may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in the Company's assumptions or otherwise. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.