Nasdaq Panel grants IMAX's application for continued listing

Nasdaq Panel grants IMAX's application for continued listing

TORONTO, July 2 /PRNewswire-FirstCall/ -- IMAX Corporation (NASDAQ:IMAX; TSX:IMX) announced today that the Nasdaq Listing Qualifications Panel (the "Panel") has granted the Company's request for continued listing of its shares on The Nasdaq Stock Market. The decision is subject to the condition that the Company file its Form 10-K for the fiscal year ended December 31, 2006, its Form 10-Q for the fiscal quarter ended March 31, 2007, and all required restatements, on or before October 1, 2007, and that it continue to meet all other Nasdaq listing requirements.

As noted below, the Company expects to make these filings shortly.

In March 2007, the Company previously announced that it would delay filing its financial statements due to the discovery of certain accounting errors and subsequently broadened its accounting review to include certain other accounting matters based on comments received by the Company from the staff of the Securities and Exchange Commission ("SEC") and the Ontario Securities Commission ("OSC").

On April 12, 2007 and May 14, 2007, Nasdaq sent the Company letters indicating that the Company was not in compliance with Marketplace Rule 4310(c)(14), which requires timely filing of periodic reports with the SEC for continued listing of the Company's common shares, and that Company's common shares were subject to delisting from The NASDAQ Stock Market.

On June 29, 2007, the Company announced that it believes it has substantially addressed the above-referenced comments from the SEC and OSC by revising its accounting policy with regard to revenue recognition for theatre systems, and that it expects to file its financial statements shortly.

The Panel noted in its decision that the Company's filing delay does not appear to have been the result of misconduct or malfeasance, and that the Company was working diligently to complete its reporting.

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(R) 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(R) 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 outcome of the accounting review, discussions with the SEC and OSC, and related matters discussed in this press release, 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, risks arising from potential material weaknesses in internal control over financial reporting, the extent and impact of the restatement of our financial statements 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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