From CHiPs Online:
Notes from the director, Phil Bondelli:
"The shots of several sharks circling were filmed in Florida second unit. The closeups of the cage were filmed in a tank in California. The closeup of the one shark attacking the cage was filmed in the tank with a frozen shark which was about five feet long. Something was inserted into the stomach to serve as ballast . . . I think it may have been mothballs . . . and the shark was manipulated with a rod by an off-camera diver."