IMAX Expands Partnership with Leading Commercial Exhibitor in Chennai, India

IMAX Expands Partnership with Leading Commercial Exhibitor in Chennai, India

Sathyam Cinemas to Install Two IMAX(R) MPX(TM) Theatre Systems at Top Multiplexes in Chennai

TORONTO, March 17 /PRNewswire-FirstCall/ -- IMAX Corporation (NASDAQ: IMAX; TSX: IMX) and Sathyam Cinemas, a leading exhibitor in Chennai, India, today announced an agreement to install two IMAX(R) MPX(TM) theatre systems at multiplexes in Chennai, a city of more than four million people in southeast India. The agreement supersedes an existing deal with Sathyam for one IMAX(R) theatre system, which was signed in 2004. The first IMAX theatre is anticipated to open in March 2006 at one of the most heavily trafficked cinemas in the country, and the second in 2008 at a location to be announced. Today's agreement increases the number of IMAX theatres scheduled to be operating in India by 2008 to nine.

"The great success of multiplex-based IMAX theatres in India continues to drive interest from commercial exhibitors throughout the country," said IMAX co-Chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechlser. "The Sathyam Cinemas multiplex is an ideal venue to launch The IMAX Experience(R) in Chennai - a key market for IMAX in India - and we believe it will help drive additional expansion of the IMAX theatre network in the region. We're excited to enter into this agreement with Sathyam and help the company advance its position as the leading exhibitor in Chennai."

"The compelling economics of the IMAX MPX theatre system, combined with the strong performance of IMAX DMR(R) releases in India fueled our interest in adding IMAX theatres to our multiplexes," said Kiran Reddy, Managing Director, Sathyam Cinemas. "With the IMAX theatre network established as the newest distribution platform for Hollywood movies, we will be able to offer moviegoers in Chennai event films in the most immersive format, and drive incremental box office for our cinemas."

Both Sathyam Cinemas' IMAX theatres will be capable of playing Hollywood event films converted into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions in 2D and IMAX(R)3D. The IMAX MPX theatre system was specifically designed to enable multiplex operators to more cost effectively enter into the IMAX theatre business, by retrofitting an existing stadium seating auditorium or via an economical new build.

About Sathyam Cinemas ---------------------

Sathyam Cinemas was founded over thirty years ago in Chennai, India and is the leading exhibitor in the state of Tamil Naidu. Its flagship location in Chennai is the highest attended cinema complex in India. Sathyam prides itself on being at the forefront of cinema technology in India.

About IMAX Corporation ----------------------

Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies and the newest distribution window for Hollywood films. IMAX delivers the world's best cinematic presentations using proprietary IMAX, IMAX 3D, and IMAX DMR technology. IMAX DMR (Digital Re-mastering) 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 entertainment experiences. As of December 31, 2004, there were 248 IMAX theatres operating in more than 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; Entertainment Media: Newman & Company, Los Angeles, Al Newman, (310) 278-1560, asn@newman-co.com; Analysts: IMAX Corporation, New York, Cheryl Cramer, (212) 821-0121, ccramer@imax.com; Business Media: Sloane & Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com

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