IMAX Signs Four Theatre Deal With Largest Exhibitor in Korea

IMAX Signs Four Theatre Deal With Largest Exhibitor in Korea

CJ CGV to Open First Two Retrofitted IMAX(R) Theatres by End of 2005

TORONTO, April 13 /PRNewswire-FirstCall/ -- IMAX Corporation (Nasdaq: IMAX; TSX: IMX) and CJ CGV Co., Ltd, the largest commercial exhibitor in Korea, today announced an agreement to install four IMAX(R) MPX(TM) theatre systems at multiplexes in Korea in the next two years. CJ CGV operates a total of 388 screens at 50 state-of-the-art multiplexes across Korea, with 233 screens at 29 sites under the CGV brand, and 155 screens at 21 sites under CJ CGV's affiliate company, Primus Cinema. CJ CGV is a subsidiary of CJ Entertainment Co., Ltd., the leading film distribution and production company in Korea, which is a significant stakeholder in DreamWorks SKG, and holds the distribution rights for Korea, China and Hong Kong for movies produced by DreamWorks. Under terms of the agreement, CJ CGV will open new and retrofitted IMAX(R) theatres at leading multiplexes in and around Seoul and Busan, the two largest cities in the country, with the first two locations scheduled to open in December 2005.

The first commercial IMAX theatre in Korea opened in Seoul twenty years ago and has registered great success, averaging as many as one million visitors per year. Korean cinemas are among the most heavily attended in the world, with average annual attendance of more than 100,000 per screen, or nearly three times that of U.S. theatres. Korea also boasts high average ticket prices and theatre occupancy rates, and this agreement considerably increases IMAX's presence in the significant market.

"Korea has a great moviegoing culture, and CJ CGV and CJ Entertainment are the clear leaders in the country's theatre and film businesses - making the company an ideal partner for our expansion in Korea," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "The IMAX Experience(R) will be a perfect fit for CJ CGV's luxurious multiplexes, and Korean multiplexes are among the most heavily attended in the world, which bodes well for the success of CJ CGV's IMAX theatres, as well as the growth of the IMAX theatre network in the country."

"CJ CGV is committed to offering our customers a high-quality cinematic experience they can't find anywhere else, and partnering with IMAX helps us deliver on this commitment, as well as further solidify our position as the leader in Korea's entertainment industry," said D.H. Park, CEO of CJ CGV and CJ Entertainment. "Given the success of Hollywood films in IMAX's format around the world, we believe the IMAX MPX theatre system can provide us a fast and compelling return on investment. We are also confident that Korean moviegoers will be willing to pay a premium price for the premium IMAX moviegoing experience, and we look forward to opening our first two IMAX theatres later this year."

All four CJ CGV IMAX theatres will be capable of showing Hollywood event films converted into the unparalleled image and sound quality of The IMAX Experience, as well as original 2D and IMAX(R) 3D films. The IMAX MPX theatre systems will be installed at multiplexes in the following locations: the Wangshipni area of Seoul; Incheon and Ilsan, suburbs of Seoul; and the Seomyun area of Busan, a city of 3.9 million on the southeastern coast of the country. The two IMAX theatres scheduled to open in December 2005 will be the first to exhibit IMAX DMR(R) (Digital Re-mastering) releases in Korea.

About CJ CGV and CJ Entertainment

CJ CGV has been the largest multiplex theater chain since opening Korea's first multiplex cinema in 1998. CJ CGV was established through a joint venture between CJ Entertainment, Hong Kong's Golden Harvest and Australia's Village Roadshow, which later was transferred as a joint venture between CJ Entertainment and Asia Cinema Holdings before going public in December 2004. CJ CGV has recently acquired Korea's fourth largest multiplex theater chain, Primus Cinema, to solidify its presence as the leading exhibitor. CJ CGV's vast theatre chain consists of a total of 388 screens at 50 sites across the nation, with CJ CGV operating 233 screens at 29 sites under the CGV brand and Primus Cinema operating 155 screens at 21 sites under Primus brand.

CJ Entertainment is a leading producer and distributor of entertainment products and services in Korea. In 1995, CJ Entertainment became a significant shareholder in partnership with Steven Spielberg, Jeffrey Katzenberg, and David Geffen in the establishment of DreamWorks SKG. CJ Entertainment's operations encompass Korean motion-picture production and distribution, both locally and internationally, as well as DreamWorks film marketing and distribution and the development of new entertainment products.

About IMAX Corporation

Founded in 1967, IMAX Corporation is the newest distribution platform for Hollywood content and one of the world's leading entertainment technology companies. 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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