American cell phone carrier, Verizon Wireless, will launch a new and improved version of Motorola’s Droid smartphone on Thursday.

The ‘Droid 2′ device will look much like its predecessor with a 3.7-inch touchscreen display, sliding QWERTY keyboard, and 5-megapixel digital camera. The new version, however, will feature an enhanced 1-GHz processor, 8GB of internal memory, and the ability to convert mobile broadband signals into a Wi-Fi hotspot. It will also come pre-loaded with the Google Android 2.2 operating system.

The new Droid will cost $199.99 on a two-year Verizon Wireless contract.

In September, Verizon plans to make a special play for the business of Star Wars fans, with the launch of a customized Droid 2 R2-D2 Edition.

“The special version of the phone will feature exclusive Star Wars content and external hardware designed to look like the trusty Droid from the film saga,” the carrier announced.

Verizon has already licensed the ‘R2-D2′ name from Star Wars producer, Lucasfilm Ltd. Pricing for the customized device has yet to be revealed.