IMAX receives favorable court rulings in patent lawsuit

IMAX receives favorable court rulings in patent lawsuit

TORONTO, Aug. 4 /PRNewswire-FirstCall/ -- IMAX Corporation (Nasdaq:IMAX; TSX:IMX) today reported a series of court orders issued by The Hon. Florence-Marie Cooper of the Federal District Court, Central District of California, in the ongoing patent litigation brought by IMAX and its co-plaintiff 3DMG, Ltd. against In-Three, Inc. On July 21 and July 29, 2005, Judge Cooper issued orders: (i) rejecting In-Three's motion to dismiss the proceedings, (ii) rejecting In-Three's motion to stay the proceedings for an examination by the U.S. Patent and Trademark Office, (iii) rejecting IMAX's motion for a preliminary injunction against In-Three and (iv) rejecting In-Three's motion for a preliminary injunction against IMAX. According to Judge Cooper, "IMAX has raised a substantial question concerning validity" of In-Three's intellectual property, and "a swift resolution of the issues is in the best interest of all involved." The case is now expected to proceed to trial quickly after completion of the parties' discovery.

"We are pleased by the Court's rejecting of In-Three's repeated attempts to derail a full and fair hearing of our infringement claims, which we are now confident will happen quickly and in our favor," said IMAX co-CEO's and co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "Meanwhile, we make continued progress towards the announcement of our first 2D-to-3D Hollywood live-action film project."

About IMAX Corporation

Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies and the newest distribution window for Hollywood films. IMAX delivers the world's best cinematic presentations using proprietary IMAX, IMAX 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. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences. As of June 30, 2005, there were 259 IMAX theatres operating in more than 36 countries.

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

3DMG, Ltd. was established by David M. Geshwind, a Senior Scientist and award-winning computer animator, who is a pioneer in the development of 2D-to-3D conversion technology, and has numerous patents in media technology.

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 for the year ended December 31, 2004 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

-------
Profile: intent