IMAX Signs Theatre Deal in China

IMAX Signs Theatre Deal in China

Company Continues to Strengthen Presence in Second Largest Market

TORONTO, Jan. 3 /PRNewswire-FirstCall/ -- IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today announced an agreement with Sailun Real Estate Development Co., Ltd., a leading property developer in China, to install an IMAX MPX(R) theatre system in a new commercial retail and entertainment development in Kunming, Yunnan Province, China. The deal reflects the continued interest in the IMAX(R) theatre business from a wide range of businesses in China, including commercial theatre-chains, institutions and property developers. The number of IMAX theatres operating in China, IMAX's fastest-growing and second- largest market, is scheduled to grow to nearly five times its current size in the next three years.

"Although we established the IMAX presence in China several years ago, we believe we've just started to tap into the potential opportunity in what is now our second largest market," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "We are delighted to add Sailun Real Estate Development Co, Ltd. to our growing list of respected property developers in China. Experience has demonstrated that, when an IMAX theatre opens in an international market, it typically generates greater brand awareness and drives additional theatre signings, and we believe IMAX is poised for accelerated growth in China."

"The universal appeal of the IMAX brand is resonating with Chinese citizens, making it an ideal anchor attraction at our new facility in Kunming," said Mr. Ma Jianghong, Chairman of Sailun Real Estate Development Co., Ltd. "Moviegoers in China are paying a premium to experience digitally re-mastered Hollywood blockbusters as well as educational and entertaining documentary-style IMAX films. This clearly demonstrates the strong consumer demand for a unique and premium experience that can't be matched at home."

When IMAX established its Asian headquarters in Shanghai in June 2002, there were three IMAX theatres open in the country, with two more in development. The introduction of the IMAX MPX theatre system and the strong worldwide performance of Hollywood blockbusters in IMAX's format helped fuel rapid expansion of the IMAX theatre network in international markets, including China. There are currently six IMAX theatres open in China, with nineteen more scheduled to open by 2008.

Continued Mr. Ma Jianghong, "The powerful draw of The IMAX Experience(R) combined with the compelling economics of our new IMAX MPX theatre system will enable us to drive incremental revenue for our business and attendance to our entire facility."

Expected to open December of 2008, the IMAX theatre will be the anchor attraction in the Kunming Shuncheng Mall, which will also include entertainment, leisure, restaurant, retail and other businesses. The IMAX theatre will exhibit Hollywood blockbusters that have been digitally re- mastered into the unparalleled image and sound quality of The IMAX Experience as well as a wide range of compelling documentaries in both 2D and IMAX(R) 3D. The theatre will be quipped with IMAX MPX technology, which was specifically designed to enable multiplex operators or commercial developers to more cost effectively enter into the IMAX theatre business, by retrofitting an existing stadium seating auditorium or via an economical new build. Kunming is the capital of the Yunnan province, located in South Western China.

About Kunming Sailun Real Estate Development Co., Ltd.
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Established in 1998, the company includes diversified businesses in real estate development, construction, IT networks, decoration, trade and commerce. The 2.5 billion-yuan "Shuncheng" project is one of the Company's milestone projects of the new millennium.

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 3D, and IMAX DMR(R) 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 September 30, 2005, there were 261 IMAX theatres operating in more than 38 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), The IMAX Experience(R) and An IMAX 3D Experience 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 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, Sarah Gormley,
(212) 821-0144, sgormley@imax.com; Business Media: Sloane & Company,
New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com; Analysts:
IMAX Corporation, New York, Steve Abraham, (212) 821-0140,
sabraham@imax.com; Entertainment Media: Newman & Company, Los Angeles,
Al Newman, (310) 278-1560, asn@newman-co.com

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