IMAX provides status update in connection with delayed filing

IMAX provides status update in connection with delayed filing

TORONTO, May 10 /PRNewswire-FirstCall/ -- IMAX Corporation (NASDAQ:IMAX; TSX:IMX) today provided a status update pursuant to the alternative information guidelines of the Ontario Securities Commission. These guidelines contemplate that the Company will normally provide bi-weekly updates on its affairs until such time as the Company is current with its filing obligations under applicable Canadian provincial securities laws.

The Company reported that, with regard to its accounting review in connection with revenue recognition for the years 2002-2006, it had completed its initial gathering of relevant documents in regard to the transactions being reviewed, prepared summaries of the relevant facts of each transaction and reviewed, along with its auditors, each transaction and identified follow-up issues. The follow-up process is progressing. The Company has now begun the process of forming its initial accounting judgments under U.S. Generally Accepted Accounting Principles.

The Company stated that it remains unable to predict exactly when it will complete its review and file its financial statements, reiterated that it intends to do so as soon as practicable, and stated that it will seek a court order in Canada permitting it to hold its Annual Shareholders Meeting after June 30, 2007. The Company also stated that it will delay the filing of its Form 10-Q report for the first quarter ended March 31, 2007 until after it completes its review and files its annual report on Form 10-K for fiscal 2006.

On April 5, 2007, the Company announced its appointment of Joseph Sparacio to the position of Executive Vice President of Finance and, ultimately, Chief Financial Officer. Mr. Sparacio is expected to join the Company on May 14, and assume the duties of CFO after the Company files its 2006 Form 10-K and Form 10-Q report for the first quarter ended March 31, 2007.

Except as to the above, and those matters described in the Company's press releases of April 3, 2007, April 5, 2007, April 9, 2007, April 12, 2007, April 13, 2007, April 16, 2007 and April 26, 2007, there have been no material developments in the matters reported in the Company's press release "IMAX to Delay Filing of 2006 10-K" dated March 29, 2007.

The Company previously announced that it would delay the filing of its annual report on Form 10-K for fiscal 2006 due to the discovery of certain accounting errors and has since broadened its accounting review to include certain other accounting matters based on comments received by the Company from the SEC and Ontario Securities Commission. The Company is currently working diligently and devoting necessary resources to complete the report and filing as soon as practicable.

The statements set forth in this press release are preliminary, reflect information currently known to the Company and are subject to change as a result of the accounting review and restatement process, subsequent events and the completion of the audit of the financial statements by the Company's independent auditors, PricewaterhouseCoopers, LLP.

The Company's next bi-weekly status update is expected to be released during the week of May 21, 2007.

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment technology companies, specializing in digital and film-based motion picture technologies. The worldwide IMAX network is among the most important and successful theatrical distribution platforms for major event Hollywood films around the globe, with IMAX theatres delivering the world's best cinematic presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR technology. IMAX DMR is the Company's groundbreaking digital remastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience(R). IMAX's renowned projectors display crystal-clear images on the world's biggest screens, and the IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. 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 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, the outcome of the Company's current accounting review, risks arising from potential material weaknesses in internal control over financial reporting, the ability to satisfy the reporting covenant by the amended filing deadlines, the extent and impact of the restatement of our financial statements, the outcome of the appeal of the NASDAQ Staff Determination letter 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.

Source: IMAX Corporation

CONTACT: Media: IMAX Corporation, New York, Sarah Gormley, (212)
821-0155, sgormley@imax.com; Business Media: Sloane & Company, New York, Whit
Clay, (212) 446-1864, wclay@sloanepr.com; Investors: Integrated Corporate
Relations, Amanda Mullin, (203) 682-8243, Amanda.Mullin@icrinc.com

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