Good news for Tolkien fans. It seems Peter Jackson and New Line Cinemas have finally put aside their squabbling and have agreed to produce two movies based on The Hobbit. The LOTR trilogy sent shock waves through the visual arts industries with the extensive use of illustration, concept art, and matte paintings during the production process as well as included in the final film. It will be interesting to see what we have in store for the next installment of Middle Earth. Pre-production will start immediately with release dates scheduled for 2010 and 2011.

Read the press release for details, or check out the official movie blog.