As part of the separation agreement, the DreamWorks principals' newcompany will take the lead on a number of development projects, whichParamount will have the option to co-finance and co-distribute. The majorityof existing DreamWorks staff is expected to be offered positions at the newcompany.

All other projects currently in development will remain at Paramount withthe opportunity for the Reliance-backed venture to co-finance several projectsto which Mr. Spielberg is attached. In addition, Mr. Spielberg will continueto produce the Transformers franchise for Paramount and will also collaborateon three other Paramount films including, "When Worlds Collide."

Brad Grey, Chairman and CEO of Paramount Pictures said, "We have had agreat run with the DreamWorks team both creatively and financially. Inparticular, it has been a true honor working closely with a storyteller ofSteven's talent and stature. We are also grateful to David and Stacey fortheir exceptional leadership, creative talent and many contributions to ourpartnership over the past few years. We look forward to building on our jointsuccesses as Paramount plans for the future."

Mr. Spielberg added, "Brad is a friend and I am pleased to be able tocontinue to work with him and his team with whom we have shared manysuccesses. We have enjoyed a productive creative and business collaborationwith Brad, Paramount and Viacom over the past few years and are enthusiasticabout extending the relationship for many years to come. And I have a veryspecial thanks to David Geffen for his far reaching vision that has made itpossible for me to steer this new course. His advice and wisdom have alwaysbeen right on the money. He is a friend for life."

"We are grateful to Brad, Rob and the entire Paramount team for theirgenerous support and constant creativity. We are very proud of the films weproduced and marketed together. We're excited about this new venture whichwouldn't have been possible without the business genius and loyalty of DavidGeffen," said Stacey Snider, Co-chairman and CEO of DreamWorks Studios.

Rob Moore, Vice Chairman Paramount Pictures added, "It has been rewardingto work with the DreamWorks team and I'm gratified we'll have the opportunityto continue to work together. We wish them the best as they launch their newventure."

About DreamWorks Studios

DreamWorks Studios was formed in 1994 by Steven Spielberg, JeffreyKatzenberg, and David Geffen. The company won three consecutive Best PictureAcademy Awards with "American Beauty," "Gladiator," and "A Beautiful Mind"(both co-produced with Universal). Among the company's other successes havebeen such films as "Saving Private Ryan" (co-produced with Paramount), "TheRing," "Minority Report" (co-produced with 20th Century Fox), "War of theWorlds," "Dreamgirls," and "Transformers" (all co-produced with Paramount).Stacey Snider joined the company in 2006 as Co-Chairman and CEO. Snider hasoverseen the company's business strategy as well as the creative and financialaspects of all film development and production. Among its upcomingproductions are "The Soloist," "Revolutionary Road," "The Lovely Bones," and"Transformers: Revenge of the Fallen."

About Paramount Pictures Corporation

Paramount Pictures Corporation (PPC), a global producer and distributor offilmed entertainment, is a unit of Viacom (NYSE: VIA, VIA.B), a leadingcontent company with prominent and respected film, television and digitalentertainment brands. The company's labels include Paramount Pictures,Paramount Vantage, Paramount Classics, MTV Films, Nickelodeon Movies andDreamWorks Studios. PPC operations also include Paramount DigitalEntertainment, Paramount Famous Productions, Paramount Home Entertainment,Paramount Pictures International, Paramount Licensing Inc., Paramount StudioGroup, and Worldwide Television Distribution. The only major studio stilllocated in Hollywood, the historic Paramount Studio is the home of manyaward-winning films including "The Godfather" series, "Forrest Gump" and"Chinatown," among others. Its upcoming slate includes David Fincher's "TheCurious Case of Benjamin Button," "Star Trek" by JJ Abrams, "G.I. Joe" byStephen Sommers, "Transformers 2" by Michael Bay, "Shutter Island" by MartinScorsese and Jon Favreau's "Iron Man 2."

About Reliance BIG Entertainment

Reliance BIG Entertainment and its affiliates represent the largestintegrated media and entertainment eco-system in India.

Key initiatives include: Movies (Hollywood and Indian), Animation, Music,Home Video/DVD, Multiplexes across, India, the US, and Asia, Broadcasting,Sports, Gaming, Internet and mobile portals, with direct opportunities indelivery across all emerging digital distribution platforms: digital cinema,IPTV, DTH and Mobile TV.

Reliance BIG Pictures, a division of Reliance BIG Entertainment, is themost prolific producer of Indian films in all major languages, with a slate ofnearly 100 films to be completed in the next 3 years.

In May 2008, Reliance BIG Pictures announced separate development dealswith Nicolas Cage's Saturn Productions, Jim Carrey's JC 23 Entertainment,George Clooney's Smokehouse Productions, Chris Columbus' 1492 Pictures, TomHanks' Playtone Productions, Brad Pitt's Plan B Entertainment, and Jay Roach'sEveryman Pictures. More development deals are planned.

Contact: Patti Rockenwagner 310-245-5686 patricia_rockenwagner@paramount.com Chip Sullivan 818-406-0097 chip_sullivan@dreamworksstudios.comSOURCE Paramount Pictures Corporation