Activision Set to Develop Video Games Based on DreamWorks Animation's Upcoming Feature Film 'Shrek 3'

SANTA MONICA, Calif., Feb 02, 2005: Following Shrek 2's ranking as the #1 children's video game in the U.S. for calendar 2004, Activision, Inc. (Nasdaq: ATVI) and DreamWorks Animation (NYSE: DWA) jointly announced that Activision will develop and publish video games based on DreamWorks Animation's upcoming animated theatrical feature film, "Shrek 3," which is scheduled for release in summer 2007.

"Activision is very excited to further expand its licensing agreement with DreamWorks on the third installment in the blockbuster animated series," said Ron Doornink, CEO of Activision Publishing, Inc. "Shrek has proven to be one of the most popular children's video game properties worldwide and we expect to continue building on the success of the franchise with the release of our upcoming game Shrek SuperSlam and future games."

In addition to "Shrek 2" and "Shrek 3," Activision also holds the exclusive interactive rights to publish games based on DreamWorks' computer-animated feature film "Shark Tale," as well as DreamWorks Animation's "Madagascar," which is scheduled to open in the U.S. on May 27, 2005 and "Over the Hedge," which is to be released in 2006.

"We're pleased that the year's #1 movie is also now the year's #1 kids animated videogame," said Anne Globe, head of DreamWorks Consumer Products. "Activision has a strong commitment to making great games, and has worked hand in hand with our animation teams to expand the Shrek universe into a broad world of terrific interactive adventures. We're excited about the future titles for Shrek, as well as upcoming new releases planned for Madagascar and Over the Hedge."

About DreamWorks Animation SKG

DreamWorks Animation SKG (NYSE: DWA) is principally devoted to developing and producing computer-animated, or CG-animated, feature films, as well as consumer products to support the release of its films.

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 $948 million for the fiscal year ended March 31, 2004.

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.

This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. 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 involved in the development and production of animated feature films, the release dates for the films described in this document may be delayed and the voice talent may change. For a further list and description of such risks and uncertainties, see our filings with the Securities and Exchange Commission (SEC) including our Form S-1 registration statement for our IPO and our quarterly report on Form 10-Q for the third quarter of 2004. 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.

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.