LUCAS, DIGITAL INNOVATORS TEAM UP.

Byline: Dave McNary Daily News Staff Writer

Movie camera specialist Panavision Inc. is teaming up with the Force.

Panavision and Sony Corp. have formed a partnership to develop digital cameras and lenses for George Lucas to shoot the second and third ``Star Wars'' prequels, both to be shot entirely without film.

The companies also said that several scenes in the finished ``Star Wars Episode 1: The Phantom Menace'' were created using a Sony digital camera and Panavision lenses as part of a ``real world'' test of the technology.

``This working relationship between ourselves, Sony and Panavision represents a model for an industry seeking to capitalize on fast-developing breakthroughs in digital imaging,'' said Rick McCallum, producer of ``Episode 1'' in a statement Sunday at the National Association of Broadcasters convention in Las Vegas.

Lucas is expected to start shooting ``Star Wars Episode 2'' next spring at Fox Studios Australia for release in 2002. He had announced earlier this year that it would be shot digitally rather than on traditional film.

Using digital cameras will give Lucas more flexibility in manipulating images and creating never-before-seen shots for the next two movies, which will revolve around the Clone Wars and Anakin Skywalker's decision to go over to the Dark Side and become Darth Vader.

Lucas, who also plans to use digital projectors in June for four screenings of ``Episode 1,'' has long been an advocate for using ``electronic cinema'' to achieve the same theater-quality results. In this case, Sony and Woodland Hills-based Panavision began work with Lucasfilm 18 months ago on a series of tests with a filmless camera on several ``Episode 1'' scenes.

In a reflection of Lucas' commitment to leading-edge technology, the scenes were transferred to conventional 35 mm film, and some have been included in the finished film as a ``real world'' test of the technology.

Sony and Panavision, which first teamed in 1988 when they developed a relay optical system for a Sony camera, said they will give Lucas late this year the prototype of a digital high-definition camera system specifically designed for moviemaking. Preproduction on ``Episode 2'' is expected to begin about the same time.

Lucas included an unprecedented 1,900 computer-generated special effects shots in the coming ``Episode 1,'' due to open May 19 with a story set 32 years before the original ``Star Wars.''

Despite the fact that ``Episode 1'' is the most anticipated movie in many years, Panavision derived no benefit Monday on Wall Street, with its stock falling 12.5 cents to $8.9375. The stock, pushed down by the slowdown in Hollywood moviemaking, has lost two-thirds of its value since investor Ronald Perelman took control with a $600 million recapitalization in June.