IMAX Corporation Closes Over-Allotment Option

IMAX Corporation Closes Over-Allotment Option

NEW YORK, NY, June 26 /PRNewswire-FirstCall/ -- IMAX Corporation (NASDAQ:IMAX; TSX:IMX) announced today that it closed the sale of an additional 1,470,000 of its common shares at the public offering price of $7.15 per share pursuant to the over-allotment option exercised in full by the underwriter of its recently completed public offering. The exercise of the over-allotment option brings the total number of common shares sold by IMAX in the offering to 11,270,000. Including proceeds from the exercise of the over-allotment option, gross proceeds for the offering were $80.6 million.

IMAX intends to use the net proceeds from the offering for the repayment of debt, including a portion of its 9.625% Senior Notes due December 2010, and for general corporate purposes. On June 9, 2009, IMAX announced that it repurchased $44.3 million of its 9.625% Senior Notes due December 1, 2010, at $0.9775 cents on the dollar.

Roth Capital Partners, LLC acted as the underwriter for the offering.

The common stock was offered pursuant to an effective registration statement filed with the Securities and Exchange Commission. Offers and sales of the common stock will be made only by the related prospectus and prospectus supplement. Copies of the prospectus and prospectus supplement relating to this offering may be obtained from Roth Capital Partners by e-mail to rothecm@roth.com, by fax to (949) 720-7227 or by mail to 24 Corporate Plaza Drive, Newport Beach, CA, 92660, Attention: Equity Capital Markets.

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(R) theatres delivering the world's best movie presentations using proprietary IMAX, IMAX(R) 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(R). The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of March 31, 2009, there were 371 IMAX theatres (250 commercial, 121 institutional) operating in 43 countries.

IMAX(R), IMAX(R) 3D, IMAX(R) DMR, The IMAX 3D Experience(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.tinyurl.com/facebookimax), Twitter (www.twitter.com/imaxnews) and YouTube (www.youtube.com/imaxmovies).

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, but are not limited to, general economic, market or business conditions, including the length and severity of the current economic downturn, the opportunities that may be presented to and pursued by the Company, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes and developments in the commercial exhibition industry, the failure to convert theatre system backlog into revenue, investments and operations in foreign jurisdictions, foreign currency fluctuations and the Company's prior restatements and the related litigation and ongoing inquiries by the SEC and the OSC. 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; Business Media: Sloane & Company, New York, Whit
Clay, (212) 446-1864, wclay@sloanepr.com; Investors: IMAX Corporation, New
York, Heather Anthony, (212) 821-0121, hanthony@imax.com

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