Warner Bros. has decided not to award the US$30 million visual effects contract for the MATRIX sequels to Manex Entertainment, despite its Oscar-winning work on the original film. Warner has decided to go with ESC Entertainment, which officially formed on Friday, March 9, 2001 and employs many of the technicians and artists that worked on the original MATRIX. In turn, Manex is seeking a judicial order to assure it has a role in the film, due to its extensive pre-production good-will work already completed. The company has developed a proprietary facial-scanning system for the sequels. Manex has been traveling down a financial rocky road of late, spurred on by soured ventures like their failed Internet division. Currently, Manex is working on the visual effects for Warner's 13 GHOSTS and QUEEN OF THE DAMNED.