Imax Signs Theatre Deal With Lark International Multimedia

Imax Signs Theatre Deal With Lark International Multimedia

China's Top Exhibitor Adds Seventh IMAX(R) Theatre Following Country's Success With Hollywood Movies Presented in IMAX's Format

TORONTO, Dec. 5 /PRNewswire-FirstCall/ -- IMAX Corporation (Nasdaq: IMAX; TSX: IMX) and Lark International Multimedia (LMM) today announced an agreement to expand an existing theatre deal with the installation of a seventh IMAX MPX(R) theatre system at a multiplex in The People's Republic of China. LMM owns two subsidiaries, Studio City Cinema Holdings Limited, operator of China's top ranking multiplex cinemas and UA Cinema Circuit Limited, operator of 55 screens and the number one grossing theatre in Hong Kong. The new IMAX(R) theatre will be retrofitted into an existing opera house that is attached to a multiplex in the city of Wuhan, and is expected to be open in the first quarter of 2007.

This deal follows the box office success IMAX theatres in Asia have had with Hollywood movies that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience(R), as well as the extremely successful multiplex IMAX theatre openings in Korea, in the cities of Incheon and Jongsan. The total number of IMAX theatres scheduled to be open in The People's Republic of China is now 25 by the end of 2009.

"We are encouraged by the recent success of new multiplex-based IMAX theatres in Asia," said Mr. Robert Vallone, the Director and General Manager of LMM. "Each time a major Hollywood title is released in IMAX's immersive format, more people leave their home theatres to pay a premium for The IMAX Experience - which cannot be replicated in any other type of theatre. This unique cinematic experience, combined with the favorable economics of the IMAX MPX business model, is the reason we strongly regard IMAX as an important part of our development plans in the region."

"China remains a key strategic market for IMAX's growth, and our expanded partnership with a leading exhibitor such as Lark International Multimedia enhances our presence and reputation in this rapidly developing region," said IMAX Co-CEO's and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "This deal clearly illustrates how the successful launch of an IMAX theatre in surrounding markets can lead to an increase in exhibitor interest and ultimately network growth in the same region. We are thrilled to continue to work with Lark International Multimedia towards bringing The IMAX Experience to more moviegoers in The People's Republic of China."

IMAX Corporation previously announced an agreement with Lark International Multimedia in January, 2005 for six IMAX MPX theatre systems. Scheduled to be installed by the end of 2009, all seven IMAX theatres will be capable of playing Hollywood event films converted into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions, in both 2D and IMAX(R) 3D. The IMAX MPX theatre system was specifically designed to make it more cost effective for commercial exhibitors to join the IMAX theatre network. The system enables a multiplex operator to more easily add an IMAX theatre to a development by retrofitting an existing stadium seating auditorium or via an economical new build.

About Lark International Multimedia Ltd.

Lark International Multimedia Limited pioneered the operation of US-style multiplex cinema chains in Hong Kong and China. Leveraging its phenomenal success in this area, the company also carried out synergistic expansion into such related fields as film distribution, online ticketing, and cinema advertising sales. The company's subsidiary, UA Cinema Circuit Limited, operates 55 screens in eight cinemas including the number one grossing cinema in Hong Kong. Another subsidiary, Studio City Cinema Holdings Limited owns three multiplex cinemas in China that consistently rank among the top 30 grossing cinemas in China and the top 3 in each of the respective cities in which they operate.

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(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, 2006, there were 280 IMAX theatres operating in 40 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX 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 installations, 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, including the transition to digital systems, 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, scheduled to be filed on November 9, 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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