Correction posted Jan. 11, 2002.

Industrial Light & Magic has been hired to handle visual effects for Terminator 3: The Rise of the Machines.

The San Francisco effects house, which earned an Academy Award for its work on Terminator 2: Judgment Day, is slated to produce in excess of 300 shots for the new entry.

Principal photography is scheduled to begin in April, with the picture set for a summer 2003 release and distribution through Warner Bros.

The film’s production budget is reported at $170 million, financed by Intermedia, and produced by C-2 partners Mario Kassar and Andy Vajna alongside Joel Michaels and Hal Lieberman.

Producers are also in discussions with additional effects vendors to contribute sequences to the project.

Pablo Helman will supervise the visual effects; he is currently serving as VFX supervisor on Star Wars: Episode II — Attack of the Clones and previously worked as associate effects supervisor on Warner Bros. titles including Wild Wild West and Space Cowboys.

Animation duties will be led by Dan Taylor, who most recently contributed to Universal’s Jurassic Park III.

ILM’s workload at the moment includes several other high-profile films, among them Star Wars: Episode II, Harry Potter and the Chamber of Secrets, Minority Report, Dreamcatcher, Men in Black II and The Hulk.

Jonathan Mostow, director of U-571, is at the helm of Terminator 3, which will see Arnold Schwarzenegger return as the cyborg for a reported fee of $30 million.

Warner Bros. has tentatively scheduled The Matrix Reloaded for Memorial Day 2003, Terminator 3 for the Fourth of July weekend and The Matrix Revolutions for November.

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