IMAX Signs Theatre Deal with Europe's Largest Exhibitor

IMAX Signs Theatre Deal with Europe's Largest Exhibitor

ODEON Cinemas Increases Stake in IMAX Business with Purchase of Two IMAX Digital Projection Systems

TORONTO, Oct. 15 /PRNewswire-FirstCall/ -- IMAX Corporation (NASDAQ:IMAX; TSX:IMX) and ODEON Cinemas Ltd., Europe's largest exhibitor, today announced an agreement to install 2 IMAX(R) theatres in Great Britain. The deal marks IMAX's second European theatre announcement in two weeks, and continues the Company's global expansion with its new digital projection system. To date, IMAX has signed contracts for more than 180 IMAX digital projection systems, with 18 currently in operation and a total of 45-50 scheduled to be in operation by year end.

Under the terms of the sale, ODEON Cinemas will install an IMAX digital projection system at the ODEON Greenwich multiplex in London and another at the ODEON Wimbledon multiplex in South-West London. Both are scheduled to be completed in December 2008.

"The economical advantages of IMAX's new digital projection system combined with the ongoing success of our existing IMAX theatre in Manchester has made the decision to expand our IMAX footprint very easy," said Rupert Gavin, CEO of ODEON Cinemas. "The IMAX theatre business has proven to be a very reliable source of incremental attendance and revenue, and the earning potential increases with IMAX digital. We look forward to continued success with IMAX, and we are optimistic about future growth opportunities following the opening of our new IMAX theatres in ODEON Greenwich and ODEON Wimbledon."

"Expanding our relationship with the largest exhibitor in Europe adds to the momentum of our digital growth strategy as we continue to align ourselves with the world's top exhibitors," said IMAX's Co-Chairmen and Co-CEOs, Richard L. Gelfond and Bradley J. Wechsler. "The United Kingdom has been a very successful market for IMAX, and with ODEON's experience and expertise in the IMAX theatre business, we believe these new locations will strengthen our brand even more."

IMAX box office in the UK has been very strong and continues to grow as more Hollywood studios release event movies in IMAX's format. The region's top performing locations include the ODEON Manchester IMAX Theatre, which reported a 108% increase in annual ticket sales for 2007 over its 2006 performance, and London's BFI IMAX theatre, which has reported more than $1 million in box office for a single film several times.

"The IMAX brand is resonating very well with consumers in the UK and we are confident that it will continue to grow in popularity with ODEON's IMAX expansion and the increasing number of major Hollywood studios getting into the IMAX business," added Larry O'Reilly, Executive Vice President of Theatre Development. "ODEON Cinemas' endorsement of our new digital projection system, which is designed to significantly reduce the operating costs of an IMAX theatre, raises the bar for other exhibitors in the region who are looking to offer an experience that consumers can't get anywhere else."

IMAX's digital projection system delivers The IMAX Experience(R) and helps drive profitability for studios, exhibitors and IMAX theatres by eliminating the need for film prints, increasing program flexibility and ultimately increasing the number of movies shown on IMAX screens. The system can run both IMAX and IMAX(R) 3D presentations.

Upcoming IMAX films include:

2008
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Madagascar 2: Escape 2 Africa - DreamWorks Animation
The Day the Earth Stood Still - Twentieth Century Fox
2009
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Under the Sea 3D - IMAX / Warner Bros. Pictures
Watchmen - Warner Bros. Pictures / Paramount Pictures / Legendary
Pictures
Monsters vs. Aliens 3D - DreamWorks Animation
Night at the Museum Battle of the Smithsonian - Twentieth Century Fox
Transformers: Revenge of the Fallen - DreamWorks Pictures / Paramount
Pictures
Harry Potter and the Half-blood Prince - Warner Bros. Pictures
2010
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Hubble 3D (working title) - IMAX / Warner Bros. Pictures
How to Train Your Dragon 3D - DreamWorks Animation
Shrek Goes Fourth 3D - DreamWorks Animation

About ODEON Cinemas

With over 75 years experience, ODEON is the biggest cinema chain in the UK. It operates 857 screens at 110 sites across the country and accounts for nearly one in three of all cinema tickets sold in the UK.

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive 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 movie presentations using proprietary IMAX, IMAX 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's groundbreaking digital re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience. 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 June 30, 2008, there were 302 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 ongoing discussions with the SEC and OSC relating to their ongoing inquiries and the Company's accounting, the performance of films, the signing of theatre system agreements, the viability of new technologies, businesses and products, 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, risks arising from potential material weaknesses in internal control over financial reporting and fluctuations in foreign currency and in the large format, general commercial exhibition and out-of-home entertainment markets. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.

Source: IMAX Corporation

CONTACT: Media: IMAX Corporation, New York, Sarah Gormley, (212)
821-0155, sgormley@imax.com; Entertainment Media: Rogers & Cowan, Los Angeles,
Jason Magner, (310) 854-8128, jmagner@rogersandcowan.com; Investors: Heather
Anthony, (212) 821-0121, (203) 682-8243, hanthony@imax.com; Business Media:
Sloane & Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com;
ODEON: ODEON Media Centre, +44 0845 070 2852, odeonteam@redconsultancy.com

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