IMAX(R) MPX(TM) Theatre System Drives Momentum for IMAX in International Markets

IMAX(R) MPX(TM) Theatre System Drives Momentum for IMAX in International Markets

Exhibitors Around the World Embrace New System to Quickly Open Multiplex-Based IMAX(R) Theatres and Capitalize on Hollywood Releases in IMAX's Format

LAS VEGAS, NV, March 14 /PRNewswire-FirstCall/ -- At the International Day Luncheon at the ShoWest 2005 conference in Las Vegas, IMAX Corporation (NASDAQ: IMAX; TSX: IMX) today announced that since launching the IMAX(R) MPX(TM) theatre system two years ago at ShoWest 2003, international exhibitors have accounted for 70% of the system's sales. Of the 36 total theatre agreements IMAX signed in 2004, 25 were with international operators, and 22 were for IMAX MPX systems. Exhibitors are increasingly adding retrofitted IMAX(R) theatres to existing multiplexes, and doing so in record time, as an IMAX theatre system can now be installed and operational in less than two months. This short turnaround time is enabling exhibitors to rapidly join the IMAX theatre network and take advantage of the proven benefits of operating a multiplex-based IMAX theatre, including incremental box office returns and differentiation from other locations in the area.

"We have been extremely pleased with exhibitor response to the IMAX MPX system, which enabled us to sign more theatre contracts in 2004 than any year in nearly half a decade," said IMAX co-Chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechlser. "There has been heavy and increasing interest from commercial operators around the world, as we continue to release today's biggest Hollywood blockbusters in IMAX's format, and the economics of operating multiplex-based IMAX theatres have improved considerably. Being able to open retrofitted IMAX theatres in as little as eight weeks also presents us with additional growth opportunities in developed markets like Europe, where there are real estate challenges that can prevent building a new facility."

Interest in opening multiplex-based IMAX theatres has come from exhibitors throughout the world, as evidenced by recent deals in Europe, Asia, Latin America and the Middle East. Highlights by region include:

Europe

On February 2nd of this year, IMAX announced an agreement with Pathe Netherlands, the leading exhibitor in the country, to install an MPX theatre system at the number one multiplex in Amsterdam. The retrofitted IMAX theatre will open to the public on March 25th - a testament to how quickly commercial exhibitors can now join the IMAX theatre network. Last year, three separate Russian exhibitors signed deals for IMAX MPX systems, largely driven by the standout performance of Hollywood movies in IMAX's format at the NESCAFE IMAX Theatre in Moscow.

Yelmo Cineplex, a joint venture between Loews Cineplex International and Yelmo Films, signed an agreement for three IMAX MPX systems in early 2004. The exhibitor opened the first ever IMAX MPX theatre during June of last year, and will open its next in the heavily trafficked resort town of Malaga, Spain next month. Leading European exhibitor Europalaces will also open an IMAX theatre in April of this year, at the Gaumont Disney Village multiplex in Paris, France.

Asia

Capitalizing on the IMAX brand and the strong moviegoing culture in The People's Republic of China, IMAX has signed a series of multi-theatre deals, including a six-theatre agreement with Lark International Multimedia, operator of over 55 commercial theatres in China, including Hong Kong's highest grossing complex. Reflecting IMAX's ability to transcend culture and language, current agreements call for 22 IMAX theatres to be in operation in China by 2008, making it one of the Company's fastest growing markets.

The strong performance of multiplex-based IMAX theatres in Hyderabad and Mumbai, India, where moviegoers have been paying up to three times the average 35mm ticket price to see IMAX DMR(R) (Digitally Re-mastering) films, helped lead to an additional signing in Bangalore. India is slated to have eight IMAX theatres in operation by 2008, and IMAX sees a great deal of potential to further develop the IMAX theatre network in the country.

IMAX also entered Pakistan for the first time this past October, signing a deal with the Government of Punjab Province to install an IMAX theatre in a multi-function shopping and entertainment park in the city of Lahore.

Latin America

Cinepolis, the largest exhibitor in Latin America and eighth largest in the world with more than 1,100 screens, signed a deal for three IMAX multiplex-based theatres last September. The Cinepolis Perisur IMAX theatre in Mexico City opened just two months later to sold out shows and excellent audience response, and Cinepolis has since accelerated plans to open its second and third IMAX theatres by as much as two years.

Further south, IMAX recently signed agreements to install two IMAX theatre systems at multiplex locations in Guatemala City, Guatemala and San Jose, Costa Rica, the first IMAX theatres scheduled to open in each country. The deals increase the number of countries in the region scheduled to have an IMAX theatre to five.

Middle East

In January of this year, IMAX announced an agreement with Kuwait National Cinema Company, the largest commercial exhibitor in Kuwait, to install two IMAX MPX theatre systems at multiplexes in Kuwait City. In 2004, a deal was signed to install an IMAX MPX system in Istanbul, Turkey. The agreements bring the total number of IMAX theatres scheduled to be open in the Middle East by 2007 to seven, including new multiplex locations in Dubai, UAE and Doha, Qatar.

About IMAX Corporation
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Founded in 1967, IMAX Corporation (NASDAQ: IMAX; TSX: IMX) is the newest distribution platform for Hollywood content and one of the world's leading entertainment technology companies. IMAX delivers the world's best cinematic presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR technology. IMAX DMR (Digital Re-mastering) makes it possible for virtually any 35mm film to be transformed into the unparalleled image and sound quality of The IMAX Experience(R). The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences. As of December 31, 2004, there were 248 IMAX theatres operating in more than 35 countries.

IMAX(R), IMAX(R) 3D, IMAX(R) MPX(TM), IMAX DMR(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information on the Company can be found at www.imax.com.

This press release contains forward looking statements that are based on management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include the timing of theatre system deliveries, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, the performance of films, the viability of new businesses and products, and fluctuations in foreign currency and in the large format and general commercial exhibition market. These factors and other risks and uncertainties are discussed in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2003 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

Source: IMAX Corporation

CONTACT: Media: IMAX Corporation, New York, Romi Schutzer,
(212) 821-0144, rschutzer@imax.com; Entertainment Media: Newman & Company,
Los Angeles, Al Newman, (310) 278-1560, asn@newman-co.com; Analysts: IMAX
Corporation, New York, Cheryl Cramer, (212) 821-0121, ccramer@imax.com;
Business Media: Sloane & Company, New York, Whit Clay, (212) 446-1864,
wclay@sloanepr.com

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