2525 Speakman Drive
Mississauga, Ontario, Canada L5K 1B1
Tel: (905) 403-6500 Fax: (905) 403-6450
www.imax.com

Imax Corporation Cancels Strategic Alternative Process

Toronto, Canada – October 13, 2000 -- IMAX Corporation (Nasdaq:IMAX; TSE:IMX) today announced that due to the recent decline in its stock price, the Company has decided to end the formal process of examining strategic alternatives including a potential sale of the Company.

“We and the Board of Directors believe that the Company’s stock price does not accurately reflect the Company’s long-term value,” said IMAX’s co-Chief Executive Officers Richard L. Gelfond and Bradley J. Wechsler. “As a result, we do not believe that in the current environment it makes sense to move forward with a formal strategic alternative process though we will continue to look for ways to maximize shareholder value.”

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 26 countries around the world as of June 30, 2000. IMAX’s subsidiaries include Digital Projection International, whose primary business is the design and manufacture of high-end digital image delivery devices, and Sonics Associates, a designer and manufacturer of high-end sound systems. IMAX has forged strategic alliances and relationships with some of the most prominent corporations in the world including Famous Players Inc. (a subsidiary of Viacom Inc.), America Online Inc. and Texas Instruments Inc. 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 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 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, 1999 and in the subsequent reports filed by the Company with the Securities and Exchange Commission. For additional information, please contact:

IMAX Corporation, Toronto
Victoria Dinnick
905-403-6366

IMAX Corporation, New York
Stephen Abraham (Analysts)
212-821-0140