TORONTO, April 9 /PRNewswire/ -- IMAX Corporation (Nasdaq: IMAX; TSE: IMX) today announced a strategic partnership which will expand IMAX's market-leading digital projection technology into the realm of digital electronic billboards and result in the largest single order in the history of IMAX's Digital Projection International Limited (DPI) subsidiary. Specifically, IMAX signed an agreement with Sweden's DHJ Media AB to develop and install digital media network systems that will replace traditional poster advertising with high revenue digital billboards. The companies announced today that the London Underground is the first location to enter into a definitive agreement for the installation of such a digital billboard system.

To be marketed under DHJ's trademarked "Outdoor Evolution Systems," the IMAX-DHJ networked digital billboard system will allow billboard owners the ability to dramatically increase revenues per billboard and will allow advertisers to target their audience on an hourly basis. Digital billboards are designed to maximize the impact of advertising dollars by allowing ads to be directed to any given location at any designated time of the day, thus allowing for better timeliness of messages, flexibility, and the ability to purchase the entire billboard network. IMAX's expertise in image projection, reliability and commitment to excellence should ensure only the highest-quality presentation of the advertiser's image and message.

Under the terms of IMAX's agreement with DHJ, IMAX will sell the digital projectors that will display the images, and DHJ will provide the network functions as well as the billing, scheduling and distribution of ads. IMAX and DHJ agreed to market the Outdoor Evolution System to five potential locations in Europe. As a result, the London Underground has placed an order with IMAX for 400 digital projectors with a value of close to $15 million, the largest order ever for IMAX's DPI subsidiary. The first 100 systems are expected to be installed by the end of 2001, with the balance expected to be delivered over the following 12 to 24 months. TDI Outdoor, a subsidiary of Viacom Inc., will handle the advertising sales for the London Underground system. IMAX and DHJ also announced that they have entered into a marketing co-venture to target the sale of Outdoor Evolution Systems to five potential customers in North America including transit systems, shopping malls and movie theatre chains.

IMAX co-CEOs Richard L. Gelfond and Bradley J. Wechsler said, "This new technology has the potential to revolutionize the world of billboard advertising in terms of message presentation, target marketing, audience impact, enhanced revenue generation and return on advertising investment. Whereas a billboard advertisement now is confined to a still picture that is changed sporadically, a digital billboard can display moving images such as movie trailers, and show multiple advertisements every hour. Such a billboard can advertise coffee in the morning, retail shopping in the afternoon, and show a preview of that night's television line-up during the evening rush hour. The result suggests a win-win for everyone; with advertisers able to buy just the demographics they want and billboard companies able to sell the same space multiple times in a day."

Messrs. Gelfond and Wechsler continued, "We believe that our partnership with DHJ and the Outdoor Evolution digital billboard system create a significant opportunity for DPI and we are excited to enter this market with DHJ. The first order under this agreement for the London Underground is the largest single order in our DPI subsidiary's history and represents the first of hopefully many such contracts."

Per Johnson, CEO of DHJ, said, "We are excited to be working with IMAX. IMAX's strong history of reliably providing the highest quality images made them an obvious partner for this venture where the quality of the image is so important. We expect that the Outdoor Evolution system will dramatically increase the productivity and market size of the billboard advertising industry. With this partnership, we are well-positioned to help create and capitalize on this highly-attractive emerging market."

DHJ Media AB, a new media company with headquarters in Stockholm and offices in London and New York, designed and patented the unique projected advertising system called 'Outdoor Evolution.' Among the principal external shareholders of DHJ are AB Industrivarden, Sweden's second largest investment company.

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 December 31, 2000. IMAX's subsidiaries include 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, 2000 and in the subsequent reports filed by the Company with the Securities and Exchange Commission. SOURCE IMAX Corporation

CONTACT: Victoria Dinnick of IMAX Corporation, Toronto, 905-403-6366, or vdinnick@imax.com, or Analysts, Stephen Abraham of IMAX Corporation, New York, 212-821-0140, or sabraham@imax.com; or Entertainment Media, Al Newman of Newman & Company, Los Angeles, 310-777-5252, or asn@newman-co.com, for IMAX Corporation.