Circus Circus Enterprises and Imax Corp. Announce Joint Venture

Business Wire, June 10, 1996

LAS VEGAS, Nevada--(BUSINESS WIRE)--June 10, 1996--Imax Corporation (NASDAQ: IMAXF TSE: IMX ) Circus Circus Enterprises, Inc., (NYSE: CIR) and Imax Corporation today announced the signing of a broad joint venture between the two companies. The agreement will include the first IMAX 3D theatre in Las Vegas, the installation of high-tech IMAX Ridefilm motion simulation theatres at two of Circus' Las Vegas properties, a software licensing agreement and the exploration of additional locations for IMAX attractions on a national basis. The two companies will also consider co-producing films for IMAX Ridefilm theatres.

The two companies will operate the IMAX 3D theatre at Circus' Luxor Hotel and Casino on the site of the "Theatre of Time," which is currently attracting more than 750,000 patrons per year. New IMAX 3D theatres in Irvine, California, Chicago and New Orleans have experienced strong demand.

By late 1996, Circus will install three IMAX Ridefilm systems at Circus' Las Vegas amusement park, Grand Slam Canyon and upgrade the six systems and films at the Luxor Hotel and Casino. Imax will begin to distribute In Search of the Obelisk, the highly successful movie ride created, produced and directed by Imax Vice Chairman and industry simulation pioneer, Douglas Trumbull. The ride, which premiered at Luxor in November 1993, will be distributed to the growing network of IMAX Ridefilm theatres worldwide.

"From its very inception, Circus Circus has been at the forefront in presenting the most innovative family entertainment experiences," said Circus Chairman and CEO Clyde Turner. "Imax is a leader in family entertainment and IMAX Ridefilm is clearly the highest quality, most entertaining motion simulation ride available today.

"Over 3.4 million people have experienced the In Search of the Obelisk movie ride at Luxor in the first 28 months of operation, making it the highest attended entertainment attraction in Las Vegas during that time. We are pleased to be able to bring the excitement of Imax's high-tech immersive entertainment products to Las Vegas. Both IMAX 3D and IMAX Ridefilm have a proven drawing power and, when combined with the strength of this location and the marketing skills of Circus, we're sure they'll be an unbeatable combination," Turner added.

"We are happy to be able to bring the one-of-a-kind experience of IMAX 3D to Las Vegas and also view this agreement as another giant step forward for IMAX Ridefilm," said Imax Chairman Bradley J. Wechsler. "We are delighted to be partnered with Circus Circus, and look forward to a long and successful relationship together.

"This is an important agreement for Imax Corporation. The IMAX 3D theater will be a prominent part of our owned and operated theater strategy and will be aided by the proven success of Luxor. Adding In Search of the Obelisk to our motion simulation film library and contracting for the IMAX Ridefilm systems continue the momentum that Ridefilm has been experiencing," he said.

Circus Circus Enterprises, Inc. owns and operates 12 properties in Nevada: Circus Circus, Luxor, Excalibur, Hacienda, Slots-A-Fun and Silver City in Las Vegas; Circus Circus Reno; the Colorado Belle and Edgewater in Laughlin; the Gold Strike and Nevada Landing in Jean; Railroad Pass in Henderson; owns a 50 percent interest in both the Silver Legacy in Reno and the Monte Carlo in Las Vegas. The company also owns and operates Circus Circus-Tunica, a riverboat casino in Tunica County, Mississippi; holds a 50 percent interest in and operates the Grand Victoria riverboat casino in Elgin Illinois; and owns a one-third interest in Windsor Casino Limited, which operates an interim casino in Windsor, Ontario.

Founded in 1967, Toronto-based Imax Corporation has consistently delivered the world's premiere cinematic experiences. As of March 31, 1996, there were 130 permanent IMAX theatres in 20 countries, with a backlog of 45 theatre systems scheduled to open during the next few years. Imax has forged strategic alliances and relationships with some of the largest corporations in the world, including Sony Corporation, Capital Cities/ABC, Olivetti, Caesars World (an ITT Corporation subsidiary), Twentieth Century Fox and Sega Enterprises, which will engender future growth for the Company and its products. An estimated 510 million people have seen an IMAX film since the medium premiered in 1970. In 1995 alone, more than 60 million people worldwide enjoyed the IMAX experience.

CONTACT: Imax Corporation, Toronto

Jennifer Rae, 416/960-4352

or

Imax Corporation, Toronto

Victoria Dinnick, 416/960-4366

or

Edelman Financial, New York

Kerry O'Brien (Media), 212/704-8291

or

Imax Corporation, Los Angeles

Al Newman, 310/820-1425

or

Circus Circus, Las Vegas

Sarah Ralston, 702/691-5981

or

Circus Circus, Las Vegas

Glenn Schaeffer, 702/734-0410