Northern California Animation and Effects Studio to Be Called PDI/DreamWorks

LOS ANGELES, February.-- DreamWorks SKG has entered into an agreement to acquire the majority interest of PDI (Pacific Data Images), the Northern California-based animation and visual effects production studio, it was announced by DreamWorks principal Jeffrey Katzenberg. The new company will be called PDI/DreamWorks.

The move came after PDI founder and Chairman Carl Rosendahl made the decision to step down from his post to pursue outside creative interests. He will, however, serve as a consultant to the new company.

In making the announcement, Katzenberg stated, "Carl Rosendahl built PDI from the ground up into one of the leading computer animation and visual effects houses in the industry. DreamWorks is committed to the successful future of PDI and is excited about the limitless possibilities this acquisition offers."

PDI will continue to operate as a stand-alone business unit of DreamWorks, producing computer-animated feature films for DreamWorks, as well as commercials and feature film effects. In addition to its current Palo Alto location, there are plans to develop a second production facility in Southern California, named PDI/DreamWorks South, which will be managed and run by PDI.

DreamWorks' association with PDI initiated in 1996 when the studio acquired 40 percent of PDI in an exclusive pact to produce a series of animated feature films. The first film stemming from that agreement was the computer animated comedy "Antz," which was released in October 1998 and went on to gross over $180 million worldwide. PDI also produced visual effects for several of DreamWorks' live action features, including "The Peacemaker," "Forces of Nature" and the upcoming "The Legend of Bagger Vance." DreamWorks and PDI have two more features presently in production: the comedy "Shrek," starring the voices of Mike Myers, Cameron Diaz and Eddie Murphy; and "Tusker," which follows the perilous adventures of an elephant herd as they cross Southeast Asia.

DreamWorks SKG was formed in October 1994 by its three principal partners -- Steven Spielberg, Jeffrey Katzenberg and David Geffen -- to produce live-action motion pictures, animated feature films, network, syndicated and cable television programming, home video entertainment, records, books, toys, consumer products and interactive entertainment.