LAS VEGAS, March 5 /PRNewswire/ -- IMAX Corporation (Nasdaq: IMAX; TSE: IMX) today announced its plans to build DLP Cinema(TM) projectors capable of projecting the largest high-quality digital image available anywhere in the world. This new Super Digital Cinema(TM) projector will have twice the performance of D-Cinema and will be the only system capable of filling the largest stadium-style theatres with screens as large as 80 feet wide. The projector will use proprietary and patent-pending technology in addition to Texas Instruments Inc.'s (TI) DLP Cinema(TM) technology.

Speaking at a luncheon at the exhibition industry's ShoWest forum, IMAX co-CEOs Richard L. Gelfond and Bradley J. Wechsler said: "IMAX is the leader in high-end visual presentations and has provided the world's best cinematic images for 30 years. We plan to leverage our expertise to deliver a DLP Cinema(TM) presentation product that is superior in quality to any other digital-based product in existence. To date we have built early stage working prototypes of the projector and our intention is to roll out a production version late this year."

This announcement follows on the heels of the sale by IMAX subsidiary Digital Projection International (DPI) sale of the first DLP Cinema(TM) projector to a commercial exhibition chain in December 2000. The DIGIMAX(TM) projector located at T-Joy's multiplex in Hiroshima, Japan, is the first to be in operation outside of the prototype network established by TI. Attendance is reported to be higher than at comparable theatres in the multiplex that are non-digital.

In September '99, DPI was acquired by IMAX and currently operates as a wholly owned subsidiary. In June 1998, DPI was awarded an Emmy(C) for technical achievements in broadcast engineering by the Academy of Television Arts and Sciences, Los Angeles. POWER Displays are the first and only projector to win this coveted award. DPI was founded in 1989, originally as a division of The Rank Group and has been instrumental in the development and application of the Texas Instruments Digital Light Processing(TM) (DLP(TM)) technology for projection systems. DPI's worldwide presence includes offices in North America, England, Europe and the Far East. More information on the Company can be found at http://www.digitalprojection.com.

IMAX Corporation and its subsidiaries comprise one of the world's leading entertainment technology companies, with particular emphasis on film and digital imaging technologies, including giant-screen images, 3D presentations, digital post-production and digital projection. There were more than 220 IMAX theatres operating in 28 countries around the world as of September 30, 2000. IMAX has a number of subsidiaries including Digital Projection International, whose primary business is the design and manufacture of high-end digital image delivery devices and DKP/70MM Inc., award-winning specialists in image quality control and post-production. IMAX Corporation is a publicly traded company listed on both the Toronto and Nasdaq stock exchanges. More information on the Company can be found at http://www.imax.com.

This press release contains forward looking statements that are based on management 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 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, the viability of new businesses and fluctuations in foreign currency and in the commercial exhibition market. 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, 1999 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

Digital Light Processing(TM) (DLP(TM)) and DLP Cinema(TM) are trademarks of Texas Instruments Inc. SOURCE IMAX Corporation

CONTACT: Victoria Dinnick of IMAX Corporation, Toronto, 905-403-6366, vdinnick@imax.com, or Analysts - Stephen Abraham of IMAX Corporation, New York, 212-821-0140, sabraham@imax.com; entertainment media - Al Newman of Newman & Company, Los Angeles, 310-777-5252, asn@newman-co.com, for IMAX Corporation; or Tim Butler of Digital Projection International, 770-420-1350, tbutler@digitalprojection.com/