Catalyst Commences Oppression Remedy Application Against IMAX and Seeks Appointment of Inspector

Business Wire, Sept 10, 2007

TORONTO -- Catalyst Fund Limited Partnership II ("Catalyst") announced today that on Friday, September 7, 2007, it commenced an application, under, among other things, the oppression remedy provisions of the Canada Business Corporations Act, in the Ontario Superior Court against IMAX Corporation ("IMAX") arising out of the restatement of IMAX's financial statements, certain debt defaults, complaints regarding the content and accuracy of IMAX's public statements and regulatory filings and concerns regarding the company's lack of both internal financial controls and a remediation plan. Catalyst is a noteholder and is a shareholder of IMAX.

The relief sought in this court application includes an order appointing an inspector to do the following for the benefit of all security holders: (i) expediting the resolution of all outstanding inquiries from the Ontario Securities Commission and United States Securities and Exchange Commission (including the public disclosure of the status of the requests from these regulators) and facilitating any further restatements of financial results arising from those inquiries; (ii) taking all necessary steps to ensure the accuracy of IMAX's financial statements as required for all the restated periods as well as going forward;(iii) reviewing the accuracy of IMAX's internal controls; (iv) overseeing the development and implementation of an appropriate remediation plan; and (v) reviewing and reporting on whether by virtue of its financial restatements, any additional indebtedness was incurred contrary to covenants (contained in the indenture which governs its outstanding notes) related to indebtedness and/or related parties transactions.

In the alternative to the appointment of an inspector, Catalyst seeks an order for the benefit of all security holders that IMAX immediately produce all relevant documentation regarding the current state of the SEC and OSC inquiries, the status of the restatement of IMAX's financial statements, all information regarding the nature and timing of the financial controls remediation plan, and full particulars of any transactions that put IMAX offside of its debt covenants or the related parties transaction provisions of the indenture.

In addition, Catalyst seeks an order declaring that the consent solicitation process commenced by IMAX in relation to certain debt defaults under the indenture was invalid and of no effect.

An initial court date of September 13 has been set for the scheduling of the hearing of the application.