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Dreamworks and Silicon Graphics to Develop Dreamworks Digital Studio of the 21st Century

MOUNTAIN VIEW, Calif. (May 31, 1995) - DreamWorks SKG and Silicon Graphics, Inc. (NYSE: SGI) today announced the development of the DreamWorks Digital Studio -- a revolutionary digital creative, production and asset management system. The deal includes the creation of a state-of-the-art computer animation production system named DAD (Digital Animation Dreammachine) which will be supported by Silicon Graphics in alliance with Cambridge Animation. DreamWorks and Silicon Graphics expect to jointly fund approximately $50 million in development costs and related hardware and software systems.

"When we embarked on the idea of creating the studio for the 21st century, we knew that technology would play a critical role," said Steven Spielberg. "We believe these alliances give us the best in the business, drawing on the strengths of each, to design and produce the most advanced, sophisticated studio and equipment ever created."

Led by the DreamWorks technology group and Silicon Graphics' entertainment subsidiary, Silicon Studio, Inc., the team will build a system for creating and managing creative content. The studio will be used initially for the needs of DreamWorks' first full-length animation production and later in aspects of feature films, television, interactive products and music.

The studio will be designed as an open network available to third-party hardware and software vendors. Silicon Graphics will deploy its Onyx graphics supercomputers, Indigo2 workstations, Indy desktop workstations and Challenge servers into the heart of the system. Cambridge Animation has been selected to provide the key cel animation component of the network and will port its Animo 2D software to the DAD system as part of the agreement. This unique software will allow filmmakers to draw from a wide spectrum of visual styles, production tools and animation techniques.

"Creatively," said Jeffrey Katzenberg, "DAD will give us the tools to produce sophisticated optical effects, an unlimited color palette, and the ability to take audiences into the picture for unique visual and dramatic entertainment experiences. We aim to set new standards in delivering unmatched animation quality."

Together, the companies provide the hardware, software and expertise for bringing this technological advancement into the next century. The new studio will feature an advanced digital content creation system, encompassing multimedia content and high-speed networking.

"The DreamWorks team has shown foresight in moving to advanced digital technology," said Edward R. McCracken, chairman and CEO of Silicon Graphics. "By working with their talented people on this exciting digital revolution, we will create tools that will benefit the entire industry."

"The team at Silicon Graphics," Spielberg added, "has proven its unparalleled commitment to the entertainment industry through its continued innovation in hardware and software applications which contributed so much to the technological breakthroughs we made on 'Jurassic Park.' We look forward to the opportunity of working closely with Silicon Graphics' engineers and artists."

"The technological advancements we gain from this system," Katzenberg noted, "will have an enormous positive effect on creativity, productivity and cost efficiency across all our businesses."

While this collaboration originates with DreamWorks, all products and technology developed under the agreement between DreamWorks and Silicon Graphics will be available to the entertainment industry as standard Silicon Studio products.

DreamWorks SKG is an entertainment studio formed in October 1994 by Steven Spielberg, Jeffrey Katzenberg and David Geffen to create motion pictures; animated films; television programs for network, cable and syndication; a record company; and interactive products.

Silicon Studio, Inc. delivers authoring and production solutions based on Silicon Graphics systems to the entertainment and interactive media industries. The company is based in Mountain View, Calif., with a Training Studio in Los Angeles; and London and Berlin Training Studios opening in 1995. Silicon Studio is a wholly-owned subsidiary of Silicon Graphics, Inc.

Silicon Graphics, Inc. is a leading manufacturer of high performance visual computing systems. The company delivers interactive three-dimensional graphics, digital media and multiprocessing supercomputing technologies to technical, scientific and creative professionals. Its subsidiary, MIPS Technologies, Inc., designs and licenses the industry's leading RISC processor technology for the computer systems and embedded control markets. Silicon Graphics has offices worldwide and headquarters in Mountain View, California.

Silicon Graphics and the Silicon Graphics logo are registered trademarks; and Indy, Indigo2, Onyx, Challenge and Silicon Studio are trademarks of Silicon Graphics, Inc. Animo 2D is a trademark of Cambridge Animation



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