DreamWorks Animation SKG, Inc. (DreamWorks Animation) is engaged in developing and producing computer-generated (CG) animated feature films. As of December 31, 2008, the Company had released a total of 17 animated feature films, 11 of which have been CG animated feature films, and one direct-to-video title. Its animated films include Shrek the Third, Shrek 2 and Madagascar. The Company derives revenue from its distributors’ worldwide exploitation of its feature films in theaters and in ancillary markets, such as home entertainment and pay and free broadcast television. In addition, DreamWorks Animation earns revenue from the licensing and merchandising of its films and characters in markets worldwide. The Company conducts its business primarily in two studios in Glendale and Redwood City, California. As of December 31, 2008, the Company released two CG animated feature films, Kung Fu Panda and Madagascar: Escape 2 Africa.