IMAX Signs Theatre Deal in Siberia

IMAX Signs Theatre Deal in Siberia

International IMAX(R) Theatre Network Continues to Expand on Heels of Hollywood Success

TORONTO, July 27 /PRNewswire-FirstCall/ -- IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today announced an agreement with Art Science Cinema Distribution, the leading exhibitor in Siberia, Russia, to install an IMAX(R) theatre in the city of Novosibirsk. The IMAX theatre will be part of the exhibitor's new multiplex planned for completion in late 2008. The deal was signed following a string of successful Hollywood films presented in IMAX's format across Europe, including Harry Potter and the Order of the Phoenix: An IMAX 3D Experience, which features an explosive finale in IMAX(R) 3D. The opening of this film marked the first time that Russia's three IMAX theatres opened a Hollywood IMAX release simultaneously, and all three theatres reported record-breaking box office results with a per screen average of more than $70,000 for the opening weekend.

"Art Science Cinema Distribution is one of Russia's largest exhibitors, and we believe that entering into a partnership with them is an effective way to introduce the IMAX(R) brand to millions of moviegoers in the region," said IMAX Co-CEO's and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "Based on the positive reactions from Russian moviegoers so far, we see growth potential in this vast and largely untapped market."

"The IMAX Experience(R) gives us the ability to offer something that far exceeds any other cinematic experience in Siberia," said Lubov Sainova, General Director of Art Science Cinema Distribution. "With Hollywood movies that have been digitally re-mastered into IMAX's format as well as documentaries that are both entertaining and educational, we will offer consumers a cinematic experience they can't get at home -- and that will be good for all areas of our business at this location. Moreover, our classic IMAX documentary programming is ideally suited to the city's recent surge of science and education initiatives."

The new theatre will utilize IMAX MPX(R) technology, designed specifically to enable multiplex operators to more cost effectively enter into the IMAX theatre business, either by retrofitting an existing stadium seating auditorium or via an economical new build. The IMAX theatre will be capable of playing Hollywood event films that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions in 2D and IMAX(R) 3D.

About Art Science Cinema Distribution

Art Science Cinema Distribution opened its first theatre in 2000 and has since become the 5th largest exhibitor in Russia, with 28 screens in 9 theatres and plans to open an additional 21 screens in 6 theatres by the end of 2007. They are the top performing exhibitor in Siberia, representing 60% of the gross box office in the region.

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment technology companies, specializing in digital and film-based 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 cinematic presentations using proprietary IMAX, IMAX 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's groundbreaking digital remastering 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 March 31, 2007, there were 283 IMAX theatres operating in 40 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX(R) 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 financial reporting and accounting, 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, risks arising from potential material weaknesses in internal control over financial reporting 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 for the year ended December 31, 2006.

Source: IMAX Corporation

CONTACT: Media: IMAX Corporation, New York, Sarah Gormley, (212)
821-0155, sgormley@imax.com; Entertainment Media: Newman & Company, Los
Angeles, Al Newman, (310) 278-1560, asn@newman-co.com; Investors: Integrated
Corporate Relations, Amanda Mullin, (203) 682-8243; Business Media: Sloane &
Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com

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Profile: International Entertainment