Imax Corporation Announces Multi-Theatre Agreement in Australia - Australian Licensee Cinema Plus Signs for Three Additional Theatres

Business Wire, March 5, 1997

TORONTO--(BUSINESS WIRE)--March 5, 1997-- IMAX CORPORATION(NASDAQ IMAXF, TSE IMX ) Imax Corporation today announced the signing of an agreement for three IMAX theatres with its Australian licensee Cinema Plus Limited (ASX:CIA). This signing was sparked by the very successful opening of Cinema Plus' Panasonic IMAX Theatre at Sydney's Darling Harbour which has reported attendance of more than 300,000 people in its first four months of operation. Cinema Plus' Sydney location was the first IMAX theatre to open under an existing three theatre deal between the companies. Cinema Plus will open its second Australian location in Melbourne in November '97 and is targeting Auckland, Perth, Brisbane and Adelaide for additional theatre sites. The three theatres under this new agreement will add an aggregate value of approximately US$10 million to Imax's existing backlog which does not include recurring revenues such as additional royalties, maintenance fees or film distribution revenue to be received from the theatres. In addition to the firm commitment for three theatres, one of which will be IMAX 3D, Cinema Plus has been granted an option for two more theatres. Cinema Plus is a publicly traded company whose sole business is the operation of IMAX theatres in the Australian/New Zealand marketplace.

"Cinema Plus' renewed commitment to the drawing power of the IMAX brand replicates a worldwide trend we have been experiencing," stated Richard L. Gelfond, Imax's Vice Chairman and Co-CEO. "Successful theatre launches have fueled additional interest in IMAX theatres, seeding the market for increased growth and signings, followed by more successful theatre openings. We've seen this in Germany, Australia and in commercial locations in the U.S."

Keith Moremon, Chairman of Cinema Plus added, "The very strong performance of our new Sydney location validated our belief in the incredible drawing power of the IMAX brand of entertainment. These theatres have proven their ability to anchor commercial entertainment complexes around the world. The objective for Cinema Plus in Australia is market leadership. IMAX technology represents that and we intend to repeat this success in other markets throughout Australia and New Zealand."

Founded in 1967, Imax Corporation has consistently delivered the world's premiere cinematic experiences. As of December 31, 1996, there were 149 IMAX theatres in operation in 22 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 media and entertainment corporations in the world, including Sony Corporation, ABC Inc. (a Walt Disney Company subsidiary), Caesars World (an ITT Corporation subsidiary), Sega Enterprises, Circus Circus Enterprises and Ogden Corporation. An estimated 510 million people have seen an IMAX film since the medium premiered in 1970. In 1996 alone, more than 65 million people worldwide enjoyed the IMAX experience.

This press release may contain forward looking statements that 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 effect 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, and foreign currency fluctuations. 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, 1995 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

CONTACT: Imax Corporation - Toronto

Victoria Dinnick, 905/ 403-6366

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Imax Corporation - New York

Brian Weisfeld, 212/ 821-0121

or

Imax Corporation - Los Angeles

Al Newman, 310/ 979-5603

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Edelman Financial - New York

Kerry O'Brien, 212/ 704-8292