LILO & STITCH was named best animated feature by both The Washington DC Area Film Critics Association (WAFCA) and the Las Vegas Film Critics Society, bucking the SPIRITED AWAY trend that has so far prevailed amongst critics. In the inaugural awards from WAFCA, announced on December 30, the critics' group also chose ICE AGE as a runner up in the animated category, and UNDERCOVER BROTHER, Universal Pictures live-action adaptation of Urban Entertainment's animated Web series, as "Best Guilty Pleasure."

Following in the footsteps of video games turned feature films such as RESIDENT EVIL and TOMB RAIDER, interactive game developer Infogrames, Inc. and Dritte/Vierte Boll Kino Beteiligungs-GmbH & Co KG (Boll Kino) are taking the horror game ALONE IN THE DARK from the computer screen to the big screen. Infogrames has sold Boll Kino the theatrical feature film rights to the classic game. Under the agreement, Boll Kino will control exclusive worldwide theatrical film rights to ALONE IN THE DARK, as well as video, DVD, television, cable and pay-per-view rights for the film.

LORD OF THE RINGS ruled the last box office weekend of 2002 with THE TWO TOWERS topping $200M after 12 days in release. The second film in the LORD OF THE RINGS trilogy, with visual effects by Weta Digital, earned $48.9M over the weekend for a total of $200.1M. In second place was CATCH ME IF YOU CAN, with visual effects by Asylum, which debuted on Christmas Day with $10M. The film, which stars Leonardo DiCaprio and Tom Hanks, earned $30M this weekend for a five-day cume of $48.6M.

Heading into the last box office weekend of 2002, it looks like a match up between Frodo and a felonious forger. LORD OF THE RINGS: THE TWO TOWERS, with visual effects by Weta Digital, topped the Christmas day box office, adding $12.4M for a total of $135.7M, just beating the debut of CATCH ME IF YOU CAN, the Steven Spielberg-directed tale of Frank Abagnale, Jr., a teenaged check forger who was the youngest man ever on the FBI's ten most wanted list.

After a stunning $26M Wednesday debut THE LORD OF THE RINGS sequel, THE TWO TOWERS, topped the box office this weekend, earning $62M for a five-day total of $102M. This puts the second film of the trilogy, once again featuring a slew of visual effects by New Zealand's Weta Digital, well in line to gross more than its predecessor 2001's THE FELLOWSHIP OF THE RING, which earned $75.1M in its first five days, on its way to $890M worldwide. Martin Scorcese's long-delayed epic GANGS OF NEW YORK, with visual effects by ILM, had a so-so fourth place debut, earning $9.1M in just over 1,500 theaters.

After announcing that it is claiming a $74 million loss on its latest animated feature TREASURE PLANET, Disney is now refocusing its overseas marketing of the film, in the hopes that this will allow the company to recoup some of its domestic losses. According to VARIETY, Buena Vista International (BVI), Disney's international distribution arm, is positioning the film as more of a fun family film, playing up the humor by centering the campaign on the secondary characters.

With Hayao Miyazaki's SPIRITED AWAY emerging as a front runner for Oscar nomination, Japanese distributor Toho Films has announced the director's next project. According to ANIME NEWS NETWORK, Miyazaki will begin production on HOWL'S MOVING CASTLE in February 2003, a film based on the novel of the same name by Diana Wynne Jones. HOWL is a love story between a male witch and an 18-year-old girl who has been transformed into an old woman. The Ghibli Studios production will be written by Reiko Yoshida, with Katsuya Kondou (KIKI'S DELIVERY SERVICE) acting as supervising animator.

Australian visual effects company Photon VFX, best known for its work on SCOOBY DOO and FINAL FANTASY, was the effects company behind the main character in the Warner Bros. horror flick GHOST SHIP -- the ship itself. The effects laden film is the largest feature film project to be shot and had all visual effects produced entirely in Australia.

Jennifer Lopez kicked James Bond right off the top spot this weekend, as the J-Lo starrer MAID IN MANHATTAN debuted at number one with $19M. The romantic comedy barely topped STAR TREK: NEMESIS, which earned $18.8M its first weekend out. The latest installation in the Star Trek series features visual effects by Digital Domain and Eden FX. After fluctuating in and out of the number one spot, DIE ANOTHER DAY, with visual effects by Cinesite, dropped all the way to fifth, earning $7.5M for a four week total of $131.5M.

Critics have begun to single out one of Disney's four short-listed animated features as a possible front runner for Oscar nomination. Hayao Miyazaki's lyrical film SPIRITED AWAY was named Best Animated Feature this week by both The New York Film Critics Circle and The Los Angeles Film Critics after receiving the same honor from the National Board of Review on December 4, 2002.