The Castelli Animati (Animated Castles) International Animated Film Festival held its second edition, October 15 - 17, 1998 in Rome, Italy. The prize winners were selected by an international jury: painter Carla Accardi (Italy), cartoonist and director Oscar Grillo (Argentina), director Daniele Luchetti (Italy), cartoonist and director Sergio Staino and director Pal Toth (Hungary).

Grand Prize and Audience Prize: Geris Game by Jan Pinkava (U.S.A.)

First Film Prize: Sientje by Christa Moesker (Netherlands).

Special Jury Prize: Everybodys Pregnant by Debra Solomon (U.S.A.).