--- title: IMAX Signs Deal With Russian Exhibitor Cinema Park for Up to 14 IMAX(R) Theatres publisher: "IMAX" description: "Agreement Marks IMAX's Largest European Theatre Deal in Company's History; Three Theatres to be Installed in 2010 Strong Performance of Russian IMAX(R) Theatres Drives Network Growth; Contract Signings Momentum Continues Worldwide MOSCOW, July 27, 2010 (GLOBE NEWSWIRE) -- IMAX Corporation" canonical: "https://www.imax.com/pr/imax-signs-deal-russian-exhibitor-cinema-park-14-imaxr-theatres" date: 2010-07-27 last_updated: 2010-07-27 --- IMAX Signs Deal With Russian Exhibitor Cinema Park for Up to 14 IMAX(R) Theatres ================================================================================ Tue, Jul 27, 2010 Agreement Marks IMAX's Largest European Theatre Deal in Company's History; Three Theatres to be Installed in 2010 Strong Performance of Russian IMAX(R) Theatres Drives Network Growth; Contract Signings Momentum Continues Worldwide MOSCOW, July 27, 2010 (GLOBE NEWSWIRE) -- IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) and Cinema Park, the exhibition chain owned by Russia's largest media holding company, Profmedia, today announced an agreement to install up to 14 IMAX(R) theatre systems throughout Russia, beginning in 2010. The agreement, which marks the single largest European theatre deal in IMAX's 45-year history, was signed as IMAX theatres in Russia and The Commonwealth of Independent States (CIS) continue to produce tremendous box office results. During the past nine months, the seven IMAX theatres in the region have produced some of the highest per screen box office averages in the world. Under the terms of the agreement, the first three Cinema Park IMAX locations will open prior to the end of 2010, followed by another seven by the end of 2012. The exhibitor has the option to add another four IMAX systems in addition to the ten that are committed. Most of the locations will be in regional markets throughout Russia, expanding the IMAX network beyond the areas of greater Moscow and St. Petersburg. Today's announcement brings the total number of IMAX theatres scheduled to be operating in Russia and the CIS by 2012 to 27, making that region IMAX's third largest market behind the United States and China. The Company's announced number of theatre systems signings year-to-date has increased to 114 worldwide, which compares to 35 system signings in all of 2009. "The incredible success of the current IMAX theatres in Russia and the attractive economics of IMAX's proven business model gave us more than enough incentive to start rolling out our own IMAX locations across our wide and expanding circuit," said Sergei Kitin, General Director of Cinema Park. "We're very excited to link the famous IMAX brand with our powerful Cinema Park name and to offer our customers across Russia the world's most immersive cinema experience. We look forward to opening the first three locations before the end of this year." "Signing this large deal in Russia demonstrates how IMAX box office success translates into growth in our worldwide theatre network," said IMAX CEO Richard L. Gelfond. "This new relationship significantly accelerates the growth of the IMAX network in one of our key international markets, and it builds on the momentum of theatre systems signings activity that we have experienced year to date." Mr. Gelfond continued, "So far this year we have more than tripled the total number of systems signings as compared to 2009, with many of these new locations scheduled to open in 2010 and 2011. We believe this network expansion will have a positive impact on IMAX's future revenues and EBITDA given the upfront revenues from the sales of the systems and recurring revenues from IMAX DMR(R) releases, theatre maintenance and potential box office royalties." "We see tremendous potential for growth in Russia and the CIS, where we continue to see great exhibitor and consumer enthusiasm for The IMAX Experience(R)," added Larry T. O'Reilly, IMAX's Executive Vice President, Theatre Development. "Cinema Park's expertise in the regional markets throughout Russia, combined with their well established exhibition brand, makes them an ideal partner to have as we expand our own brand and business in the region." About Cinema Park CJSC "CINEMA PARK" is a Russian 3D-multiplex chain established by "Prof-Media" Holding. Founded in 2002, CINEMA PARK operates 16 cinemas (133 screens, 24 125 seats) throughout Russia. The exhibitor features high-end, world-class technologies, well-designed multiplexes and high standards of service in all of its locations. For further information please, visit www.cinemapark.ru. About IMAX Corporation IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies. 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 re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of March 31, 2010, there were 438 IMAX theatres (316 commercial, 122 institutional) operating in 47 countries. The IMAX Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6469 IMAX(R), IMAX(R) 3D, IMAX DMR(R), An IMAX 3D Experience(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imaxnews) and YouTube (www.youtube.com/imaxmovies). This press release contains forward looking statements that are based on 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 accounting, the performance of films, the signing of theatre system agreements, the viability of new technologies, businesses and products, 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, risks arising from potential material weaknesses in internal control over financial reporting and fluctuations in foreign currency and in the large format, general commercial exhibition and out-of-home entertainment markets. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q. This news release was distributed by GlobeNewswire, www.globenewswire.com SOURCE: IMAX Corporation CONTACT: IMAX Corporation, New York Sarah Gormley 212-821-0155 sgormley@imax.com Investors: Heather Anthony 212-821-0121 hanthony@imax.com Principal Communications Group, Los Angeles Entertainment Media: Melissa Zukerman melissa@pcommgroup.com Paul Pflug paul@pcommgroup.com 323-658-1555 Sloane & Company, New York Business Media: Whit Clay 212-446-1864 wclay@sloanepr.com