TAG Blog has posted an update on the Kung Fu Panda sequel:

Every building of the DW campus is bursting with activity. Monsters and Aliens, Shrek, Madagascar Deux, and on and on. DreamWorks' Lakeside Building is getting enlarged, and the administrative staff is gone from the upper floors.

But down on the lower levels, artists are working. A story crew has started early work in Kung Fu Panda, the Sequel, even while animators are hand-drawing new material for the DVD of Kung Fu Panda, the original.

The DreamWorks Animated hit has made roughly $230 million in just 19 days of release worldwide, while the film cost about $130 million to make.