DreamWorks Animation SKG Announces the Completion of Transaction to Sell Shares by Paul Allen

DreamWorks Animation SKG Announces the Completion of Transaction to Sell Shares by Paul Allen

GLENDALE, Calif., Aug. 9 /PRNewswire-FirstCall/ -- DreamWorks Animation SKG, Inc. (NYSE:DWA) announced today that DW Investment II, Inc. ("DWI II"), an entity controlled by Paul Allen, has completed its sale of 10,186,137 shares of the Company's Class A common stock in a registered public offering announced on August 6, 2007 and underwritten by Goldman, Sachs & Co. and Bear, Stearns & Co. Inc. The transaction was completed as a block trade with the Company's underwriters after the close of market on the August 6, 2007.

DreamWorks Animation also announced that, pursuant to its August 6, 2007 press release, the Company has completed the repurchase of 4,813,863 shares of the Company's Class A common stock directly from DWI II.

A registration statement relating to the securities has previously been filed with, and has been declared effective by, the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the final prospectus supplement together with the accompanying prospectus can be obtained at the SEC's website at http://www.sec.gov/ or from Goldman, Sachs & Co., Prospectus Department, 85 Broad Street, New York, New York 10004, fax: 212-902-9316 or email at prospectus-ny@ny.email.gs.com.

About DreamWorks Animation SKG

DreamWorks Animation is principally devoted to developing and producing computer generated animated feature films. The Company has theatrically released a total of fourteen animated feature films, including Antz, Shrek, Shrek 2, Shrek the Third, Shark Tale, Madagascar, Wallace & Gromit: The Curse of the Were-Rabbit, Over the Hedge and Flushed Away. DreamWorks Animation's newest release, Bee Movie, is scheduled to open in theaters November 2, 2007.

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 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. The Company 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.

First Call Analyst:
FCMN Contact: cbloom@sardverb.com

Source: DreamWorks Animation SKG, Inc.

CONTACT: DreamWorks Animation Investor Relations, +1-818-695-3900,
ir@dreamworksanimation.com

Web site:

http://www.dreamworksanimation.com/

-------
Profile: intent