HIGHLIGHTS , Apr 28, 2011 (GlobeNewswire via COMTEX) --

Company Reports First Quarter 2011 Revenues of $45.2 million; Adjusted Earnings Per Diluted Share of $0.04 -- Company Increases 2011 Outlook for New Theatre Installations by Approximately 40% Reflecting 101 Theatre Signings in the First Quarter -- Quarter Ending Theatre Backlog Stands at a Record 283 Systems -- Company Receives Commitment Letter for Expansion of Credit Facility to Up to $110 Million -- Summer Film Slate Kicks into Gear Tomorrow with Universal Pictures' Fast Five: The IMAX Experience

NEW YORK, April 28, 2011 (GLOBE NEWSWIRE) -- IMAX Corporation (NYSE:IMAX) (TSX:IMX) today reported its first quarter 2011 financial results and increased its fiscal 2011 outlook for new theatre installations by approximately 40%, after signing agreements for 101 IMAX(R) theatre systems in the first quarter.

"The first quarter lacked event films, particularly compared to the phenomenal strength of last year's Avatar, and our financial results as compared to last year reflect this," said IMAX Chief Executive Officer Richard L. Gelfond. "At the same time, we signed agreements for 101 theatre systems in the quarter, allowing us to surpass our signings goal for the full year of 2011 in just three months. As a result, we are increasing our 2011 outlook for new theatre installations by 40 percent, and we now expect our commercial theatre network to grow by at least 30 percent in 2011 for the third consecutive year, which we believe will yield significant long-term benefits for our shareholders."

The Company reported total revenue for the first quarter ended March 31, 2011 of $45.2 million. Last year's first quarter revenue was $72.8 million. Fiscal 2011 adjusted net income, excluding a charge related to the change in the value of the Company's variable stock compensation, a non-cash tax benefit, and a one-time charge of $2.1 million, or $0.03 per diluted share, related to an arbitration proceeding arising from a discontinued subsidiary, was $2.5 million, or $0.04 per diluted share, versus adjusted net income of $35.3 million, or $0.53 per diluted share in the same period last year. The Company reported a net loss for the first quarter of 2011 of $1.0 million, or $0.02 per diluted share. First quarter 2010 reported net income was $26.6 million, or $0.40 per diluted share. First quarter adjusted EBITDA was $9.0 million. For a reconciliation of adjusted net income to reported net income and to adjusted EBITDA, please see the tables at the end of this press release.

Theatres Signings/Network Growth Outlook

The Company signed contracts for 101 theatre systems in the first quarter of 2011, compared to 41 theatre systems signed in the first quarter of 2010. As a result, the Company now expects to install between 115 and 125 new theatres this year, compared to its previous expectations for 80 to 90 theatre installations in 2011. This implies year-over-year commercial multiplex network growth of more than 30 percent. Of the 115 to 125 new theatres to be installed in 2011, it is expected that between 25 and 35 (20 to 25 new joint revenue sharing systems and 5 to 10 new sales-type lease systems, excluding upgrades) will be installed in the second quarter of 2011. The Company's current outlook for network growth is only based on theatres currently in backlog and does not account for any theatres that may both sign and install during the remainder of 2011. The Company cautions that installations can slip from period to period, usually for reasons beyond its control. For a breakdown of first quarter system signings by type, please see the end of this press release.

"The types of theatre deals signed recently are strategically significant as they highlight two of the growth paths we are pursuing - international and small- to mid-tier domestic markets," said Mr. Gelfond. "We made significant inroads in several of the BRIC nations, particularly in China, where we signed our first full joint revenue sharing arrangement for 75 theatres with Wanda Cinema Line, the largest international theatre deal in our history. Domestically, we continued to penetrate small to mid-tier domestic markets with new theatre agreements with prominent regional exhibitors like Premiere Cinema Corp. and Warren Theatres."

Theatre System Installations

During the first quarter of 2011, the Company installed 43 theatre systems, compared to a total of 19 system installations in the first quarter of 2010. Total installations include new IMAX theatre locations, as well as the upgrade of existing IMAX film-based theatre systems to digital. For a breakdown of system installations by type, please see the end of this press release.

"In addition to our theatre signings momentum, we focused heavily on operational execution this quarter so that we will be in position to capitalize on the remainder of our 2011 film slate, which includes IMAX versions of some of the most highly anticipated films of the year," added Mr. Gelfond. "The summer 2011 movie season kicks off tomorrow with Fast Five domestically and Thor internationally, and will feature the latest installments of the popular Pirates of the Caribbean, Transformers and Harry Potter series. As a result, we installed IMAX digital theatre systems, in both new and existing locations, at an aggressive pace of more than three systems per week, making the first quarter one of our busiest periods ever for theatre installations."

Theatre System Backlog

As of March 31, 2011, the Company's backlog consisted of a record 283 theatre systems, including 125 systems under joint revenue sharing arrangements and 158 systems under sales and sales-type lease arrangements, five of which were systems designated for digital upgrades. This compares to a theatre backlog of 156 systems as of March 31, 2010, which included 56 theatres under joint revenue sharing arrangements and 100 theatres under sales and sales-type lease arrangements, seven of which were designated for digital upgrades.

First Quarter Segment Results

In the first quarter of 2011, IMAX systems revenue was $22.3 million, compared to $11.0 million in the first quarter of 2010, primarily reflecting the installation of 11 new theatre systems in the most recent first quarter, compared to four systems in the first quarter of 2010. The Company also installed 22 digital upgrades in the first quarter of 2011, compared to nine in the same year-ago period.

In the first quarter of 2011, revenue from joint revenue sharing arrangements was $4.0 million, compared to $18.9 million in the prior year period. During the quarter, the Company installed 10 new joint revenue sharing theatres, compared to five in the year-ago period. As of March 31, 2011, there were a total of 181 theatres under joint revenue sharing arrangements, a 48% increase compared to 122 joint revenue sharing theatres open as of the year-ago period.

First quarter 2011 total film revenue was $11.5 million, compared to $29.3 million in the first quarter of 2010. Production and IMAX DMR(R) revenues were $7.3 million in the first quarter of 2011. Production and IMAX DMR revenues were $23.5 million in the year-ago period, $16.2 million of which was generated by Avatar: An IMAX 3D Experience. Gross box office from DMR titles was $62.1 million in the first quarter of 2011, compared to $232.2 million in the first quarter of 2010. The average DMR box office per screen in the first quarter was $175,000 ($133,000 domestic, $266,000 international) versus $844,000 ($695,000 domestic, $1.2 million international) in the first quarter of 2010.

Mr. Gelfond continued, "While our first quarter box office was disappointing, we maintained above average market share across a broad film slate, demonstrating the strong consumer appetite for The IMAX Experience(R). Our theatre backlog is at record levels and the 2011 summer movie season, which kicks off tomorrow, will feature more IMAX releases than in any year prior, on our rapidly growing network of screens. We continue to anticipate growth in revenues and adjusted EBITDA in 2011 as compared to 2010."

New Credit Facility Commitment Letter

In a separate release today, the Company announced that it has received a commitment letter from its commercial lender, Wells Fargo Capital Finance Corporation Canada ("Wells Fargo Capital Finance"), pursuant to which Wells Fargo Capital Finance and Export Development Canada (EDC) will expand its credit facility to up to $110 million. Upon execution of definitive documents, the new expanded facility will replace the Company's current facility and extend the maturity to October 2015. Consistent with the Company's strong credit statistics, borrowings under the credit facility will bear interest at the reduced spread of 2.00% above LIBOR, versus previous interest rates of LIBOR plus 3.75% and 2.75% for the current term loan and revolving asset-based loan, respectively.

"Upon completion, this newly expanded and extended credit agreement reflects the positive growth trends our Company is experiencing, and we are pleased to continue our strong relationship with Wells Fargo Capital Finance and Export Development Canada," said Mr. Gelfond. "This larger facility, coupled with the strong cash-generating nature of our business, will be used for general corporate purposes, as well as allow us to pursue our strategic initiatives and the continued global expansion of our Company."

Conference Call

The Company will host a conference call today at 8:30 AM ET to discuss its first quarter 2011 financial results. To access the call via telephone, interested parties should dial (800) 901-5217 approximately 5 to 10 minutes before it begins. International callers should dial (617) 786-2964. The participant passcode for the call is 76417399. This call is also being webcast by Thomson Financial and can be accessed on the 'Investor Relations' section of www.imax.com. A replay of the call will be available via webcast on the 'Investor Relations' section of www.imax.com or via telephone by dialing (888) 286-8010, or (617) 801-6888 for international callers. The participant passcode for the telephone replay is 34167967.

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment and technology companies, specializing in the creation and delivery of premium, awe-inspiring entertainment experiences. With a growing suite of cutting-edge motion picture and sound technologies, and a globally recognized entertainment brand, IMAX is singularly situated at the convergence of the entertainment industry, innovation and the digital media world. The industry's top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and as such, the IMAX network is among the most important and successful theatrical distribution platforms for major event films around the globe. The Company's new digital projection and sound systems - combined with a growing blockbuster film slate - are fueling the rapid expansion of the IMAX network in established markets such as North America, Western Europe, and Japan, as well as emerging markets such as China and Russia. IMAX theaters deliver the world's best cinematic presentations using proprietary IMAX(R), IMAX 3D(R), and IMAX DMR(R) (Digital Re-Mastering) technologies. IMAX DMR enables virtually any motion picture to be transformed into the unparalleled image and sound quality of The IMAX Experience(R).

IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo and Shanghai. As of March 31, 2011, there were 528 IMAX theatres (408 commercial, 120 institutional) operating in 46 countries.

The IMAX Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6469

IMAX(R), IMAX(R) 3D, IMAX DMR(R), Experience It In IMAX(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/imax) 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, but are not limited to, general economic, market or business conditions, including the length and severity of the current economic downturn, the opportunities that may be presented to and pursued by the Company, competitive actions by other companies, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes in law or regulations, conditions, changes and developments in the commercial exhibition industry, the failure to convert theatre system backlog into revenue, new business initiatives, investments and operations in foreign jurisdictions and any future international expansion, foreign currency fluctuations and the Company's prior restatements and the related litigation and investigation by the SEC and the ongoing inquiry by the OSC. 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.

                         Additional Information

Gross Box Office from DMR

The primary drivers of gross box office in the first quarter of 2011 were Walt Disney Pictures' TRON: Legacy: An IMAX 3D Experience, Sony Pictures' The Green Hornet: An IMAX 3D Experience, and DreamWorks' and Disney's I Am Number Four: The IMAX Experience. TRON has generated approximately $60.2 million in worldwide IMAX box office to date, $25.3 million of which was captured in the first quarter. The Green Hornet has generated approximately $10.7 million in worldwide IMAX box office to date. I Am Number Four has generated approximately $10.8 million in worldwide IMAX box office to date.

2011 Film Slate

To date, the Company has signed contracts for 22 DMR films that will play in the IMAX theatre network in 2011. The Company remains in active discussions with every major Hollywood studio regarding future titles. Films to be released throughout the remainder of 2011 include:

  --  Fast Five: The IMAX Experience (Universal, April 2011);
  --  Thor: An IMAX3D Experience (Marvel, Paramount, May 2011);
  --  Pirates of the Caribbean: On Stranger Tides: An IMAX3D Experience
      (Disney, May 2011);
  --  Kung Fu Panda 2: An IMAX3D Experience (Paramount, May 2011, to be
      released in select international markets);
  --  Super 8: The IMAX Experience (Paramount, June 2011);
  --  The Founding of a Party: The IMAX Experience (China Film Group, June
      2011, to be released in the People's Republic of China);
  --  Cars 2: An IMAX3D Experience (Disney, June 2011);
  --  Transformers 3: Dark of the Moon: An IMAX 3D Experience (Paramount, July
      2011);
  --  Harry Potter and the Deathly Hallows: Part II: An IMAX3D Experience (WB,
      July 2011);
  --  Real Steel: The IMAX Experience (DreamWorks Studios Disney, October
      2011);
  --  Contagion: The IMAX Experience (WB, October 2011);
  --  Puss in Boots: An IMAX3D Experience (Paramount, November 2011);
  --  Happy Feet 2: An IMAX3D Experience (WB, November 2011);
  --  Mission: Impossible -- Ghost Protocol: The IMAX Experience (Paramount,
      December 2011); and
  --  The Adventures of Tintin: The Secret of the Unicorn: An IMAX3D
      Experience (Paramount, December 2011).

Theatre System Signings

During the first quarter of 2011, the Company signed contracts for 101 theatre systems (76 joint venture systems; and 25 sales/sales-type lease systems, including two digital upgrades), compared to contracts for 41 theatre systems (19 joint venture systems; and 22 sales/sales-type lease systems, including 14 digital upgrades) in the first quarter of 2010.

Theatre System Installations

In the first quarter of 2011, the Company installed a total of 43 theatre systems (10 joint venture systems; and 33 sales/sales-type lease systems, including 22 digital upgrades), compared to having installed 19 theatre systems (6 joint venture systems, including one digital upgrade; and 13 sales/sales-type lease systems, including nine digital upgrades) in the first quarter of 2010.

                      IMAX CORPORATION
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     In accordance with United States Generally Accepted
                    Accounting Principles
  (In thousands of U.S. dollars, except per share amounts)
                         (Unaudited)

                                          Three Months

                                         Ended March 31,
                                      --------------------

                                         2011       2010
                                      ---------  ---------
  Revenues
  Equipment and product sales          $ 20,231   $ 11,608
  Services                               18,274     40,231
  Rentals                                 5,051     19,875
  Finance income                          1,354      1,070

  Other                                     250         --
                                      ---------  ---------

                                         45,160     72,784
                                      ---------  ---------
  Costs and expenses applicable to
   revenues
  Equipment and product sales            10,851      8,134
  Services                               11,377     13,967
  Rentals                                 2,266      2,383

  Other                                      20         --
                                      ---------  ---------

                                         24,514     24,484
                                      ---------  ---------
  Gross margin                           20,646     48,300
  Selling, general and
   administrative expenses               16,868     19,530
   (including share-based
    compensation expense of $3.9
    million for the three months
    ended March 31, 2011 (2010 --
    $9.3 million))
  Provision for arbitration award         2,055         --
  Research and development                1,868      1,243
  Amortization of intangibles               112        130
  Receivable provisions, net of
   recoveries                               208         13
                                      ---------  ---------
  (Loss) income from operations           (465)     27,384
  Interest income                            18        284

  Interest expense                        (443)      (652)
                                      ---------  ---------
  (Loss) income from operations
   before income taxes                    (890)     27,016
  Recovery of (provision for) income
   taxes                                    309      (436)
  Loss from equity-accounted
   investments                            (422)         --
                                      ---------  ---------

  Net (loss) income                   $ (1,003)   $ 26,580
                                      ---------  =========
  Net (loss) income per share -
   basic and diluted:
   Net (loss) income per share from
    operations - basic                  $(0.02)     $ 0.42
                                      =========  =========


   Net (loss) income per share from
    operations - diluted                $(0.02)     $ 0.40
                                      =========  =========
  Weighted average number of shares
   outstanding (000's):
   Basic                                 64,187     63,056
   Fully Diluted                         64,187     66,108

  Additional Disclosure:

  Depreciation and amortization(1)      $ 5,247    $ 5,158


  ----------------------------------
   (1)  Includes $0.1 million of amortization of deferred
    financing costs charged to interest expense for the
    three months ended March 31, 2011 (March 31, 2010 --
    less than $0.1 million).

                   IMAX CORPORATION
        CONDENSED CONSOLIDATED BALANCE SHEETS
     In accordance with United States Generally
            Accepted Accounting Principles
           (in thousands of U.S. dollars)

                                As at       As at
                                           December
                              March 31,      31,

                                2011         2010
                             -----------  ---------
                             (unaudited)
  Assets
  Cash and cash equivalents     $ 17,379   $ 30,390
  Accounts receivable, net
   of allowance for
   doubtful accounts of
   $1,495 (December 31,
   2010 -- $1,988)                30,518     39,570
  Financing receivables           75,944     73,601
  Inventories                     17,146     15,275
  Prepaid expenses                 3,533      2,832
  Film assets                      2,105      2,449
  Property, plant and
   equipment                      78,313     74,035
  Other assets                    12,789     12,350
  Deferred income taxes           57,417     57,122
  Goodwill                        39,027     39,027

  Other intangible assets          2,403      2,437
                             -----------  ---------

  Total assets                 $ 336,574  $ 349,088
                             ===========  =========

  Liabilities
  Bank indebtedness             $ 17,500   $ 17,500
  Accounts payable                21,902     20,384
  Accrued liabilities             63,961     78,994

  Deferred revenue                71,319     73,752
                             -----------  ---------

  Total liabilities              174,682    190,630
                             -----------  ---------

  Commitments and
   contingencies

  Shareholders' equity
  Capital stock, common
   shares -- no par value.
   Authorized -- unlimited
   number.
   Issued and outstanding
    -- 64,254,939 (December
    31, 2010 -- 64,145,573)      294,179    292,977
  Other equity                    10,852      7,687
  Deficit                      (142,212)  (141,209)
  Accumulated other
   comprehensive loss              (927)      (997)
                             -----------  ---------
  Total shareholders'
   equity                        161,892    158,458
                             -----------  ---------
  Total liabilities and
   shareholders' equity        $ 336,574  $ 349,088
                             ===========  =========

                         IMAX CORPORATION
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
   In accordance with United States Generally Accepted Accounting
                             Principles
     (In thousands of U.S. dollars, except per share amounts)
                            (Unaudited)

                                                 Three Months

                                                Ended March 31,
                                              -------------------

                                                 2011      2010
                                              ---------  --------
  Cash (used in) provided by:
  Operating Activities
  Net (loss) income                           $ (1,003)  $ 26,580
  Items not involving cash:
   Depreciation and amortization                  5,247     5,158
   Write-downs, net of recoveries                   208       109
   Change in deferred income taxes                (315)        --
   Stock and other non-cash compensation          4,107     9,579
   Foreign currency exchange (gain) loss        (1,084)       621
   Loss on equity-accounted investments             422        --
   Gain on non-cash contribution to
    equity-accounted investees                    (404)        --
   Change in cash surrender value of life
    insurance                                        --      (23)
  Investment in film assets                     (2,250)   (2,149)
  Changes in other non-cash operating assets
   and liabilities                             (14,494)  (28,772)
                                              ---------  --------
   Net cash (used in) provided by operating
    activities                                  (9,566)    11,103
                                              ---------  --------

  Investing Activities
  Purchase of property, plant and equipment       (838)     (685)
  Investment in joint revenue sharing
   equipment                                    (3,136)     (540)
  Acquisition of other assets                        --     (203)

  Acquisition of other intangible assets          (232)     (131)
                                              ---------  --------

   Net cash used in investing activities        (4,206)   (1,559)
                                              ---------  --------

  Financing Activities
  Repayment of bank indebtedness                     --  (10,000)
  Common shares issued - stock options
   exercised                                        831     3,945
                                              ---------  --------
   Net cash provided by (used in) financing
    activities                                      831   (6,055)
                                              ---------  --------


  Effects of exchange rate changes on cash         (70)      (67)
                                              ---------  --------

  (Decrease) increase in cash and cash
   equivalents during the period               (13,011)     3,422

  Cash and cash equivalents, beginning of
   period                                        30,390    20,081
                                              ---------  --------

  Cash and cash equivalents, end of period     $ 17,379  $ 23,503
                                              =========  ========

                 IMAX CORPORATION
             SELECTED FINANCIAL DATA
    In accordance with United States Generally
          Accepted Accounting Principles
          (in thousands of U.S. dollars)

  The Company has eight reportable segments
   identified by category of product sold or
   service provided: IMAX systems; theater
   system maintenance; joint revenue sharing
   arrangements; film production and IMAX DMR;
   film distribution; film post-production;
   theater operations; and other. The IMAX
   systems segment designs, manufactures, sells
   or leases IMAX theater projection system
   equipment. The theater system maintenance
   segment maintains IMAX theater projection
   system equipment in the IMAX theater network.
   The joint revenue sharing arrangements
   segment provides IMAX theater projection
   system equipment to an exhibitor in exchange
   for a share of the box-office and concessions
   revenue. The film production and IMAX DMR
   segment produces films and performs film
   re-mastering services. The film distribution
   segment distributes films for which the
   Company has distribution rights. The film
   post-production segment provides film
   post-production and film print services. The
   theater operations segment operates certain
   IMAX theaters. The other segment includes
   camera rentals and other miscellaneous items.

                                Three Months

                               Ended March 31,
                            --------------------

                               2011       2010
                            ---------  ---------
  Revenue
  IMAX systems
   Sales and sales-type
    leases                   $ 19,309    $ 8,531
   Ongoing rent, fees, and
    finance income              2,950      2,422
                            ---------  ---------

                               22,259     10,953
                            ---------  ---------
  Theater system
   maintenance                  5,795      4,966
                            ---------  ---------
  Joint revenue sharing
   arrangements                 4,040     18,936
                            ---------  ---------
  Film
   Production and IMAX DMR      7,258     23,452
   Distribution                 2,617      3,273

   Post-production              1,624      2,592
                            ---------  ---------

                               11,499     29,317
                            ---------  ---------

  Theater operations              981      5,949
                            ---------  ---------

  Other                           586      2,663
                            ---------  ---------

  Total                      $ 45,160   $ 72,784
                            =========  =========

  Gross margins
  IMAX systems(1)
   Sales and sales-type
    leases                    $ 8,942    $ 2,063
   Ongoing rent, fees, and
    finance income              2,793      2,437
                            ---------  ---------

                               11,735      4,500
                            ---------  ---------
  Theater system
   maintenance                  2,587      2,309
                            ---------  ---------
  Joint revenue sharing
   arrangements(1)              2,178     16,812
                            ---------  ---------
  Film
   Production and IMAX
    DMR(1)                      2,759     19,501
   Distribution(1)                626        742

   Post-production              1,689      2,054
                            ---------  ---------

                                5,074     22,297
                            ---------  ---------

  Theater operations            (763)      1,658
                            ---------  ---------

  Other                         (165)        724
                            ---------  ---------

  Total                      $ 20,646   $ 48,300
                            =========  =========

  _________
   (1) IMAX systems include commission costs of
    $0.7 million for the three months ended
    March 31, 2011 (2010 -- $0.2 million). Joint
    revenue sharing arrangements segment margins
    include advertising, marketing and
    commission costs of $0.5 million for the
    three months ended March 31, 2011 (2010 --
    $0.6 million). Production and DMR segment
    margins include marketing costs of $0.4
    million for the three months ended March 31,
    2011 (2010 -- $0.2 million). Distribution
    segment margins include marketing costs of
    $0.2 million for the three months ended
    March 31, 2011 (2010 -- $0.5 million).

           IMAX CORPORATION
           OTHER INFORMATION
     (in thousands of U.S. dollars)


  Non-GAAP Financial Measures:

  In this release, the Company
  presents adjusted EBITDA, adjusted
  net income and adjusted net income
  per diluted share as supplemental
  measures of performance of the
  Company, which are not recognized
  under United States generally
  accepted accounting principles
  ("GAAP"). The Company presents
  adjusted EBITDA, adjusted net
  income and adjusted net income per
  diluted share because it believes
  that it is an important
  supplemental measure of our
  performance and that it is
  frequently used by securities
  analysts, investors and others in
  the evaluation of companies in our
  industry. However, it may not be
  comparable to similarly titled
  amounts reported by other
  companies. Adjusted EBITDA,
  adjusted net income and adjusted
  net income per share should be
  considered in addition to, and not
  as a substitute for, net (loss)
  income, cash flows and other
  measures of financial performance
  reported in accordance with GAAP.

  Adjusted EBITDA is calculated on a
  basis consistent with the Company's
  Credit Facility, which refers to
  Adjusted EBITDA as EBITDA. The
  Credit Facility provides that so
  long as the term loan remains
  outstanding, the Company will be
  required to maintain: (i) a ratio
  of funded debt (as defined in the
  Credit Agreement) to EBITDA (as
  defined in the Credit Agreement) of
  not more than 2:1 through December
  31, 2010, and (ii) a ratio of
  funded debt to EBITDA of not more
  than 1.75:1 thereafter. If the
  Company repays the term loan in
  full, it will remain subject to
  such ratio requirements only if
  Excess Availability (as defined in
  the Credit Agreement) is less than
  $10.0 million or Cash and Excess
  Availability (as defined in the
  Credit Agreement) is less than
  $15.0 million. The ratio of funded
  debt to EBITDA was 0.26:1 at March
  31, 2011, where Funded Debt (as
  defined in the Credit Agreement) is
  the sum of all obligations
  evidenced by notes, bonds,
  debentures or similar instruments
  and was $17.5 million.

                 For the    For the
                 3 Months   12 Months
                  Ended       Ended

                March 31,   March 31,
                   2011     2011(1)
                ---------  ----------

  Net (loss)
  income        $ (1,003)    $ 73,196
  Add
  (subtract):
   Loss from
   equity
   accounted
   investments        422         915
   Recovery of
   income
   taxes            (309)    (52,529)
   Interest
   expense net
   of interest
   income             425       1,542
   Depreciatio
   n and
   amortizatio
   n including
   film asset
   amortizatio
   n                5,161      20,281
   Write-downs
   net of
   recoveries
   including
   asset
   impairments
   and
   receivable
   provisions         208       2,650
   Stock and
   other
   non-cash
   compensatio
   n                4,107      22,723

   Other, net          --       (356)
                ---------  ----------
   Adjusted
   EBITDA         $ 9,011    $ 68,422
                =========  ==========


  ------------
  (1) Ratio of funded debt calculated
  using twelve months ended EBITDA.

                     IMAX CORPORATION
                    OTHER INFORMATION
             (in thousands of U.S. dollars)


  Adjusted Net Income:

  Adjusted net income excludes a charge related to the
   change in the value of the Company's variable stock
   compensation, a non-cash tax benefit, and a one-time
   charge related to an arbitration proceeding arising
   from a discontinued subsidiary. In the first quarter
   of 2011, the Company incurred a $1.8 million charge
   in SG&A resulting primarily from the increased value
   of the Company's variable stock compensation at the
   end of the period (primarily driven by the $3.91
   increase in the Company's stock price over the
   course of the first quarter), as compared to an $8.7
   million charge from variable stock compensation in
   the first quarter of 2010. As of March 31, 2011,
   there were approximately 605,000 variable stock
   awards outstanding, compared to 1,960,000 as of
   March 31, 2010. The Company anticipates that by June
   30, 2011, less than 200,000 variable stock awards
   will remain outstanding. First quarter 2011 adjusted
   net income also excludes the impact of a non-cash
   tax benefit of $0.3 million and a $2.1 million
   one-time provision for an arbitration award.

  Adjusted Diluted Earnings Per Share Calculation:

                                   For the Three Months
                                      Ended March 31,

                                      2011       2010
                                   ---------  ---------

  Net (loss) income                $ (1,003)   $ 26,580
  Add:
   Variable stock compensation         1,803      8,747
   Provision for arbitration
    award                              2,055         --
  Less:

   Non-cash tax benefit                (315)         --
                                   ---------  ---------

  Adjusted net income                $ 2,540   $ 35,327
                                   =========  =========


  Diluted shares outstanding          68,224     66,108
                                   =========  =========
  Adjusted net income per diluted
   share                              $ 0.04     $ 0.53
                                   =========  =========

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: IMAX Corporation

CONTACT: Investors:
IMAX Corporation, New York
Heather Anthony/Blaire Lomasky
212-821-0100
hanthony@imax.com
blomasky@imax.com
Business Media:
Sloane & Company, New York
Whit Clay
212-446-1864
wclay@sloanepr.com
Media:
IMAX Corporation, New York
Ann Sommerlath
212-821-0155
asommerlath@imax.com
Entertainment Media:
Principal Communications Group, Los Angeles
Melissa Zuckerman/Paul Pflug
323-658-1555
melissa@pcommgroup.com
paul@pcommgroup.com