IMAX Targets India for Growth

IMAX Targets India for Growth Co-Chairman and Co-CEO Visits India Following Success of Theatres Playing Hollywood Films in IMAX's Format HYDERABAD, India, Dec. 3 /PRNewswire-FirstCall/ -- IMAX Corporation (Nasdaq:IMAX; TSX:IMX) today announced that it is ramping up its international expansion efforts in India, based in part on the strong performance of multiplex-based IMAX(R) theatres in Hyderabad and Mumbai. The announcement was made today by Mr. Richard Gelfond, Co-CEO & Co-Chairman of IMAX, at a press conference held at the PRASADS IMAX Theatre in Hyderabad. Mr. Gelfond is in India to meet with exhibitors and real estate developers to support expansion of the IMAX theatre network in the region. IMAX theatres in Hyderabad and Mumbai have been among the top performing locations in the world for Hollywood films released in IMAX's format. "The noteworthy success of IMAX DMR(R) releases in India has us excited about and committed to growth in the country," said Mr. Richard L. Gelfond, Co-CEO and Co-Chairman of IMAX. "With Indian moviegoers' proven appetite for Hollywood films in IMAX's format, and the new IMAX(R) MPX(TM) theatre system, which significantly lowers the cost of opening an IMAX theatre, we believe there is a compelling opportunity for cinema operators and real estate developers in India to enter the IMAX business. We look forward to strengthening our presence in the region and the opportunity to bring The IMAX Experience(R) to more people across the country." India's first IMAX theatre opened in Mumbai in March 2001, and was followed by openings in Ahmedabad and Hyderabad in March 2002 and July 2003, respectively. In the past 19 months, there has been accelerated interest for The IMAX Experience in the country, with agreements for seven more theatre systems. Delhi and Kalkutta are scheduled to be the next Indian cities to open IMAX theatres, and with five more expected to open by 2008, India has joined China as one of IMAX's fastest growing markets in the world. Hollywood films converted into IMAX's format have been well received in India, with theatres in the country recording impressive attendance and box office performance. The PRASADS IMAX Theatre in Hyderabad has been exceptionally successful, attracting more than 550,000 people during its first year of operation and posting the highest gross box office figures in the worldwide IMAX theatre network for Spider-Man 2: The IMAX Experience. "Hollywood movies we've offered in IMAX's format have met great customer response, drawn large crowds and helped to significantly differentiate our theatre from competitors," said Ramesh Prasad, Managing Director of the Prasad Group. "We're proud to have pioneered The IMAX Experience in Hyderabad and look forward to offering additional IMAX DMR films." About Prasad Group The Prasad Group has long been associated with high quality entertainment through successful, impactful films. Over the years, the group's focus has been to constantly innovate and diversify into several aspects of film making, with divisions, such as Prasad Productions, Prasad Film Laboratries, Prasad Video Digital, EFX, and now Prasad Media Corporation Limited. Most recently, they have made inroads into the world of large-scale entertainment with their latest venture - 'PRASADS', an integrated Family Entertainment Center in Hyderabad, a Part of the Buddha Purnima Project Area, an initiative by the Ministry of Tourism, Government of Andra Pradesh. About IMAX Corporation Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies. IMAX's businesses include the creation and delivery of the world's best cinematic presentations using proprietary IMAX and IMAX(R) 3D technology, and the development of the highest quality digital production and presentation. IMAX has developed revolutionary technology called IMAX DMR (Digital Re-mastering) that 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 family entertainment experiences. As of September 30, 2004, there were more than 235 IMAX theatres operating in 35 countries. IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX(R) MPX(TM) 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 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, 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/A for the year ended December 31, 2003 and in the subsequent reports filed by the Company with the Securities and Exchange Commission. Source: IMAX Corporation CONTACT: Media: IMAX Corporation, New York, Romi Schutzer, (212) 821-0144, rschutzer@imax.com; Business Media: Sloane & Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com; Entertainment Media: Newman & Company, Los Angeles, Al Newman, (818) 784-2130, asn@newman-co.com; Analysts: IMAX Corporation, New York, Cheryl Cramer, (212) 821-0121, ccramer@imax.com ------- Profile: International Entertainment