IMAX Signs Multiplex Theatre Deal in Brazil

IMAX Signs Multiplex Theatre Deal in Brazil

One of Brazil's Fastest Growing Exhibitors Enters IMAX(R) Theatre Business

29 IMAX Theatres to Be Open in Latin America By 2008

TORONTO, Sept. 11 /PRNewswire-FirstCall/ -- September 11, 2006 - IMAX Corporation (NASDAQ: IMAX; TSX: IMX) today announced an agreement with Circuito Cinearte Ltd., one of Brazil's fastest growing exhibitors, to install an IMAX(R) theatre as an anchor attraction at the new Bourbon Shopping Pompeia in Sao Paulo, Brazil, scheduled to open in 2007. Located in a rapidly growing and prestigious area of Sao Paulo, the new shopping center will be one of the city's most prominent retail developments, with 220 businesses and a 10-screen multiplex. This announcement marks IMAX's second deal in Brazil and reflects continued momentum in the Company's international expansion strategy. There are now 29 IMAX theatres scheduled to be open in Latin America by 2008.

"Brazil is a vast and relatively untapped market that holds great potential for expansion of the IMAX theatre network," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "We are delighted to join one of the country's fastest growing exhibitors to bring The IMAX Experience(R) to moviegoers in Sao Paulo. Historically, the successful launch of an IMAX theatre in a new market has led to increased enthusiasm and interest in IMAX from exhibitors in surrounding markets. We are confident that establishing a presence in a city as prominent as Sao Paulo will be beneficial to further growth in Latin America."

"The impressive box office performance of Hollywood movies in IMAX's format shows us that moviegoers are drawn to the uniquely immersive experience that only IMAX theatres can deliver," said Adhemar de Oliveira, Managing Director of Circuito Cinearte Ltd. "With moviegoers in Brazil looking for the best premium cinematic experience, and a mix of Hollywood titles and original IMAX documentaries being released to IMAX theatres each year, we are confident that our new theatre at the Bourbon Shopping Pompeia will serve as the premiere cultural and entertainment destination for people of all ages."

The IMAX theatre in Sao Paolo will be capable of showing Hollywood blockbusters, as well as a wide variety of original IMAX films, in both 2D and IMAX(R) 3D. The IMAX MPX(R) theatre system that will be installed was specifically designed to enable multiplex operators to more cost effectively enter into the IMAX theatre business, by retrofitting an existing stadium seating auditorium or via an economical new build.

The Bourbon Shopping Pompeia will be located in the Western part of Sao Paulo - an area that is experiencing rapid development. In addition to the IMAX theatre, other elements that will differentiate the 1.9 million square foot mall from others in Sao Paulo include a 1,500-seat live theatre designed to stage Broadway-style plays, a 32,000 square foot bookstore and one of the renowned Zaffari Bourbon high tech Supermarkets.

About Circuito Cinearte Ltda

Founded in 1990, Circuito Cinearte has become one of Brazil's largest multiplex operators with theatres located in 10 cities. These theatres are often sponsored by or developed in collaboration with other investment groups such as Unibanco, one of Brazil's largest Bank Groups (the Unibanco Artplex) with theatres in Sao Paulo, Rio de Janeiro, Porto Alegre and Curitiba. The exhibitor was recently recognized by local media for having the best theatres in Rio and Sao Paulo. Diversity in film selection, comfortable stadium seating, and theatres specifically designed for the cities they are located in have been some of the key drivers of Cinearte's success. A distinctive feature of the Cinearte Group has been its unique ability to combine culture, education and entertainment within the same complex. Multiplexes often include space for art exhibits and run educational programs on film as well as televised debates on Brazilian movies. In Sao Paulo, for example, Cinearte has over 8,000 school teachers that are members of a Cinearte Film association and regularly meet at the various theaters to see films of all genres.

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, 2006, there were 274 IMAX theatres operating in 38 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX(R) MPX(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 for the year ended December 31, 2005 and in the subsequent reports filed by the Company with the Securities and Exchange Commission including the Company's 10-Q for the quarter ended June 30, 2006.

Source: IMAX Corporation

CONTACT: Media: IMAX Corporation, New York, Sarah Gormley, (212)
821-0155, sgormley@imax.com; Entertainment Media: Newman & Company, Los
Angeles, Al Newman, (310) 278-1560, asn@newman-co.com; Investors: Integrated
Corporate Relations, Amanda Mullin, (203) 682-8243; Business Media: Sloane &
Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com

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