Scholastic (NASDAQ:SCHL), the world's largest publisher and distributor of children's books, announced today that it has been named the primary publishing licensee for DreamWorks' animated feature films. As part of the agreement, Scholastic will have rights to publish all novelizations, coloring and activity books, picture and storybooks based on DreamWorks' next five animated films. Scholastic has acquired most world English-language rights as well as Spanish-language rights for the United States, Canada, Mexico and Latin America. The first books to be published by Scholastic will be for Shrek 2, the sequel to the blockbuster, animated film, Shrek®.

Scholastic has a history of bringing best-selling properties to kids and families, such as Harry Potter, Clifford, The Big Red Dog®, The Thief Lord, and Captain Underpants. DreamWorks is a leader in family entertainment, with such box-office hits as Chicken Run and Shrek, the latter of which won the first Academy Award® for Best Animated Feature.

In making the announcement, Ellie Berger, Vice President, Deputy Publisher Scholastic said: "DreamWorks is one of the premiere animated film companies and we are thrilled to be working with them to translate their highly imaginative, kid-friendly animated movies into the printed medium. We are very excited to have the opportunity to offer these books through all retail outlets, as well as through Scholastic's other unique distribution channels reaching millions of parents, teachers and children."

Brad Globe, Head of DreamWorks Consumer Products said: "Scholastic is an exceptional children's publisher, the leader in children's book clubs and fairs and one of the only brand names in publishing. This is an excellent opportunity to extend DreamWorks' properties in a wide variety of formats, outlets and price points."

Kristy Cox, Head of Worldwide Publishing, DreamWorks Consumer Products added: "We are delighted to be affiliated with a publisher whose focus is quality books for children. We look forward to working with Scholastic to create a library of books as innovative and imaginative as the animated films that will inspire them."

Scholastic Corporation, the world's largest publisher and distributor of children's books, creates quality educational and entertaining materials and products for use in school and at home, including children's books, textbooks, magazines, technology-based products, teacher materials, television programming, videos and toys. The Company distributes its products and services through a variety of channels, including proprietary school-based book clubs, school-based book fairs, school-based and direct-to-home continuity programs; retail stores, schools, libraries, and television networks; and the Company's Internet Site, www.scholastic.com.

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 and cable television programming; home video entertainment; records; books; toys; and consumer products.