IMAX Signs Two-Theatre Deal in Philippines

IMAX Signs Two-Theatre Deal in Philippines

Success of IMAX(R) Theatre in Manila Leads Country's Largest Mall Operator To Expand its IMAX Network With Two More Locations

IMAX's Digital Projection System Drives Commercial Interest Internationally

MANILA, Philippines, Jan. 22 /PRNewswire-FirstCall/ -- IMAX Corporation (NASDAQ:IMAX; TSX:IMX) and SM Prime Holdings, the largest mall operator in the Philippines, today announced an agreement to install two IMAX(R) digital projection systems at shopping malls in the cities of Manila and Cebu. The deal follows the tremendous success of SM's first IMAX(R) theatre, which has been the highest grossing screen in the country since it opened in 2006. Under the terms of the parties' agreement, the two IMAX digital theatre systems are expected to be installed during the third and fourth quarters of 2009.

"International growth remains an important part of our commercial strategy, and we couldn't be happier with SM Prime Holding's decision to expand its IMAX network in the Philippines following the success of its first theatre," said IMAX Co-Chairmen and Co-CEOs Richard L. Gelfond and Bradley J. Wechsler. "SM Prime Holdings is the largest mall operator and commercial developer in the country, and we believe our partnership with them provides a great opportunity to reach the widest possible audience in this important market."

Located in Manila, the SM IMAX Theatre is an anchor attraction at the SM Mall of Asia, and attendance has already surpassed 175,000 individual ticket sales. Hollywood movies that have been digitally re-mastered into IMAX's format have consistently performed very well, with moviegoers paying as much as a 100 percent premium for select shows.

SM's new locations will utilize the new digital projection system being developed by IMAX. The system is configured for an IMAX MPX(R)-style auditorium, which is designed specifically to enable multiplex operators to more cost effectively enter into the IMAX theatre business. The theatres will be capable of playing Hollywood movies that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience(R), as well as original IMAX productions in 2D and IMAX(R) 3D.

IMAX has already secured important parts of its film slate for 2008, 2009 and 2010 through agreements with major Hollywood studios including: The Spiderwick Chronicles (February 2008), Shine A Light (April 2008), Kung Fu Panda (June 2008), The Dark Knight (July 2008), Under the Sea 3D (working title, February 2009), Monsters vs. Aliens 3D (March 2009), How to Train Your Dragon 3D (November 2009), Hubble 3D (working title, February 2010) and Shrek Goes Forth 3D (May 2010).

About SM Prime Holdings

The SM Group was founded in 1958 by Henry Sy, Sr. and is now the largest mall operator in the Philippines. The Mall of Asia is the SM Group's 24th mall out of 30, and it is the largest and finest to date.

Opened in the first quarter of 2006, the mall brings to the Philippines a new standard of shopping and entertainment. With over 380,000 square meters of gross floor area, it includes such attractions as an Olympic-size skating rink, nine 35-mm theatres, a large live theatre and the biggest array of retail, dining and entertainment options ever assembled under one roof in the Philippines.

The Mall of Asia is the perfect "Ultimate Movie Experience" venue for Filipinos. Although IMAX is regarded as the world's premium cinematic experience, the SM Group will price tickets to be affordable for most Filipinos, consistent with the SM Group's philosophies for all its new innovations.

About IMAX Corporation

IMAX Corporation is one of the world's leading digital entertainment and technology companies. 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(R) 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(R). IMAX's renowned projectors and new digital systems display crystal-clear images on the world's biggest screens. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of September 30, 2007, there were 296 IMAX theatres operating in 40 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX 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 IMAX 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 IMAX's Annual Report on Form 10-K/A for the year ended December 31, 2006, as well as IMAX's Quarterly Reports on Form 10-Q/A and Form 10-Q.

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