IMAX Signs Two-Theatre Deal in Philippines

Tue Jan 22, 2008 7:30am EST

* Reuters is not responsible for the content in this press release.

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

    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

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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