TORONTO, May 9, 2002 /PRNewswire-FirstCall via COMTEX/ --

HIGHLIGHTS * IMAX reports first quarter net earnings of $0.32 per share and earnings from continuing operations of $0.06 per share, and remains on track for a return to profitability in 2002 * New IMAX(R) DMR(TM) technology will bring live-action Hollywood films to IMAX(R) theatres * Beauty and the Beast drives 63% improvement in revenue at owned and operated theatres

IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today reported net earnings of $0.32 per share for the first quarter ended March 31, 2002. The earnings from continuing operations were $0.06 per share versus a loss from continuing operations of $0.42 per share in the prior-year period.

"Our first quarter results reflect the continued improvement in our business and the effects of our lowered cost structure," said IMAX Co-Chief Executive Officers Richard L. Gelfond and Bradley J. Wechsler. "We are particularly pleased with the turnaround in attendance at our owned and operated theatre group which achieved a 63% improvement in revenues versus the first quarter of 2001 on the strength of The Walt Disney Company's Beauty and the Beast. We remain on track for a return to profitability for all of 2002 based on the improved film slate for IMAX theatres this year and our internal focus on costs."

In late March the Company introduced a technology that can convert live-action 35mm films to IMAX's 15/70 film format, transforming it into the unparalleled image and sound quality of The IMAX Experience(R). This proprietary system, known as IMAX(R) Digital Re-Mastering(TM) (IMAX(R) DMR(TM)), positions IMAX theatres to become a release window for Hollywood event films. Apollo 13: The IMAX Experience, to be released in conjunction with Universal Pictures and Imagine Entertainment in August, will be the first film to use this revolutionary technology.

Messrs. Gelfond and Wechsler continued, "The introduction of IMAX DMR, which enables any live-action 35mm film to be converted into IMAX's 15/70 film format, will help IMAX theatres become the place to see Hollywood event films and positions IMAX as the newest release window for these films. Apollo 13: The IMAX Experience will demonstrate the viability of an IMAX DMR re-release of a film and pave the way for simultaneous releases of event blockbuster films in both conventional 35mm and IMAX theatres. Our financial results, the improving health of the commercial exhibition market and the development of our breakthrough IMAX DMR technology continues to bolster our confidence in the Company's future."

During the first quarter, the Company signed leases for three new theatre systems versus none in the first quarter of 2001. In April, IMAX's first 3D space film SPACE STATION, narrated by Tom Cruise and filmed by 25 astronauts and cosmonauts, was launched with more film leases signed than any other film in the Company's 35-year history.

In the first quarter, the Company's revenues were $31.3 million as compared to $28.7 million in the prior year. Systems revenue was $20.4 million versus $16.3 million in the prior year as the Company recognized revenues on six theatre systems in the first quarter of 2002 versus three theatre systems in the first quarter of 2001. Film revenue was $6.1 million versus $9.3 million in the prior year. Other revenue was $4.8 million as compared to $3.1 million in the prior year. The Company had a reported profit of $0.32 per share for the first quarter on a fully diluted basis after extraordinary items as compared to losses of $0.45 per share in the first quarter of 2001. The Company's sales backlog was approximately $155 million at March 31, 2002, representing contracts for 58 theatre systems.

The above numbers treat the Company's former subsidiary Digital Projection International as a discontinued operation for all reported periods.

Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies. IMAX's businesses include the world's best cinematic presentations together with IMAX, IMAX 3D and the development of the highest quality digital production and presentation. The IMAX brand is recognized throughout the world for extraordinary and immersive family experiences. As of March 2002, there were more than 225 IMAX theatres operating in 30 countries. More than 700 million people have seen an IMAX presentation since the medium premiered in 1970. IMAX Corporation is a publicly traded company listed on both the Toronto and Nasdaq stock exchanges. IMAX(R) is a registered trademark of IMAX Corporation. 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 affect these statements include the timing of theatre system signings and installations, 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 technologies 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 for the year ended December 31, 2001 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

                               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 data)
                                 (unaudited)

                                                  Three months ended March 31,
                                                       2002           2001
    Revenue
    IMAX systems                                     $20,385        $16,278
    Films                                              6,067          9,256
    Other                                              4,823          3,145
                                                      31,275         28,679
    Costs of goods and services                       17,868         18,902
    Gross margin                                      13,407          9,777

    Selling, general and administrative expenses       9,842          9,578
    Research and development                             204          1,195
    Amortization of intangibles                          388            752
    Loss from equity-accounted investees                  56             93
    Restructuring costs                                   --         10,942
    Earnings (loss) from operations                    2,917        (12,783)

    Interest income                                       85            344
    Interest expense                                  (4,319)        (5,303)
    Foreign exchange loss                               (360)        (1,915)
    Loss from continuing
     operations before income taxes                   (1,677)       (19,657)
    Recovery of income taxes                           3,682          6,898
    Net earnings (loss) from continuing operations     2,005        (12,759)
    Net loss from discontinued operations                 --         (1,012)
    Net earnings (loss) before extraordinary items     2,005        (13,771)
    Extraordinary gain on repurchase of
     convertible subordinated notes, net
     of income tax expense of $3,682                   8,542             --
    Net earnings (loss)                              $10,547       $(13,771)

    Earnings (loss) per share data:
    Earnings (loss) per share - basic and diluted:
      Net earnings (loss) from continuing operations   $0.06         $(0.42)
      Net loss from discontinued operations              $--         $(0.03)
      Net earnings (loss) before extraordinary items   $0.06         $(0.45)
      Extraordinary items                              $0.26            $--
      Net earnings (loss)                              $0.32         $(0.45)

    Weighted average number of shares outstanding (000's)
    Basic and diluted                                 32,913         30,114

SOURCE IMAX Corporation

CONTACT:
Liam Romalis of IMAX Corporation, Toronto, +1-905-403-6392,
lromalis@imax.com; or Analysts - Stephen G. Abraham of IMAX Corporation, New
York, +1-212-821-0140, sabraham@imax.com; or Entertainment Media - Al Newman
of Newman & Company, Los Angeles, +1-818-784-2130, asn@newman-co.com, for
IMAX
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URL: http://www.imax.com