According to the Sci-Fi Wire, the physical production unit of ILM, which deals with models, miniatures, and stage work, is being sold to an ILM employee, Mark Anderson, and will be renamed Kerner Optical.
It will be a preferred subcontractor for ILM. More information is available here: http://www.scifi.com/scifiwire/index.php?category=0&id=36609
Thanks to CGI, I guess they don't need real models anymore, I'm surprised Lucas used any live actors at all in Episode 3... I wonder what Ray Harryhausen would think about that!
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