IMAX(R) Theatres in Hyderabad and Mumbai Outperform All Theatres in India for Spider-Man 2

Successful Film Runs Lead to Increased Exhibitor Interest in the Region

HYDERABAD and MUMBAI, India, Oct. 21 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ: IMAX; TSX: IMX) announced today that India's two commercially operated IMAX(R) theatres have the highest grossing screens in the country for Spider-Man 2. The film was converted into IMAX's format using IMAX DMR(R) (Digital Re- Mastering) technology and released in India at the same time as the conventional 35mm version. In the ten weeks since its release, nearly 130,000 people have visited the PRASADS IMAX Theatre in Hyderabad and the Adlabs IMAX Theatre in Mumbai to experience Spider-Man 2 in IMAX's format. The theatres posted nearly 8% of the film's total box office in India on less than 1% of the total number of screens, with audiences willing to pay up to three times more for tickets to Spider-Man 2: The IMAX Experience than the average ticket price of the 35mm release.

The emphatic consumer response to IMAX DMR films in India is further evidence of the worldwide appeal and staying power of The IMAX Experience(R), and it helps build additional momentum for IMAX's commercial growth strategy in one of its fastest growing markets.

"The IMAX theatre we installed just over twelve months ago has drawn hundreds of thousands of people to our multiplex and differentiated us from all the cinemas in Hyderabad," said Ramesh Prasad, Managing Director of the Prasad Group. "We have been extremely pleased with the response to Spider-Man 2: The IMAX Experience, and look forward to offering future Hollywood event films in IMAX's immersive format, as well as traditional IMAX documentary- style films, which have also performed very well."

"We were the first operator to open an IMAX theatre in India and believed early on that moviegoers here would recognize the power of The IMAX Experience - and pay a premium price for it," said Pooja Shetty, Director of Adlabs Film Ltd. "IMAX's format offers a whole new way to experience Hollywood films, and it's a major reason why more and more fans keep returning to our theatre."

"The success of our multiplex theatres with DMR in India and China has led to increased interest from exhibitors in the region," said Larry T. O'Reilly, Executive Vice President, Theatre Development of IMAX Corporation. "Potential customers are seeing the numbers and gaining increased confidence that an IMAX theatre can be profitable in these markets. We're thrilled to be working with the Prasad Group and Adlabs to offer moviegoers in India the world's most immersive cinematic experience and look forward to continued growth in the country."

The noteworthy success of Spider-Man 2: The IMAX Experience in India follows on news of strong results in China, as well. The Peace Cinema IMAX Theatre in Shanghai sold out more shows of Spider-Man 2 than any theatre in the country, helping to propel it to one of the top performing theatres in China. China and India are two of IMAX's fastest growing markets.

About Prasad Group

The Prasad Group has long been associated with high quality entertainment through successful, impactful films. Over the years, the group's focus has been to constantly innovate and diversify into several aspects of film making, with divisions, such as Prasad Productions, Prasad Film Laboratries, Prasad Video Digital, EFX, and now Prasad Media Corporation Limited. Most recently, they have made inroads into the world of large-scale entertainment with their latest venture - 'PRASADS', an integrated Family Entertainment Center in Hyderabad, a Part of the Buddha Purnima Project Area, an initiative by the Ministry of Tourism, Government of Andra Pradesh.

About Adlabs Films Limited

Adlabs Films Limited, India's award winning motion picture film processing laboratory, focuses on superior technology and quality entertainment through its leading multiplex chains in the country. The Company today processes a massive 85 per cent of the Hindi films made in the country. In the Film Exhibition segment, the Company has set up India's first and the world's largest IMAX Dome theatre, as well as Mumbai's first 4 screen multiplex theatre. Currently Adlabs owns 85 % of the multiplex business in Mumbai. In the next two years, the Company has aggressive plans to expand in the exhibition business by setting a chain of multiplex theatres under its management and envisions 30 multiplexes (120 screens) across the country.

About IMAX Corporation

Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies. IMAX's businesses include the creation and delivery of the world's best cinematic presentations using proprietary IMAX and IMAX(R) 3D technology, and the development of the highest quality digital production and presentation. IMAX has developed revolutionary technology called IMAX DMR (Digital Re-mastering) that makes it possible for virtually any 35mm film to be transformed into the unparalleled image and sound quality of The IMAX Experience. The IMAX brand is recognized throughout the world for extraordinary and immersive family entertainment experiences. As of June 30, 2004, there were 240 IMAX theatres operating in 35 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(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 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 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, 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 the Company's Annual Report on Form 10-K/A for the year ended December 31, 2003 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

SOURCE Imax Corporation

CONTACT: Media: IMAX Corporation, New York, Romi
Schutzer, (212) 821-0144, rschutzer@imax.com; Entertainment Media: Newman &
Company, Los Angeles, Al Newman, (818) 784-2130, asn@newman-co.com;
Analysts: IMAX Corporation, New York, Cheryl Cramer, (212) 821-0121,
ccramer@imax.com; Business Media: Sloane & Company, New York, Whit Clay,
(212) 446-1864, wclay@sloanepr.com
(IMX. IMAX)