TORONTO, March 1 /PRNewswire-FirstCall/ -- IMAX Corporation (Nasdaq: IMAX - news; TSE: IMX - news) today reported its results for the fourth quarter and fiscal year ended December 31, 2001. The Company reported earnings, after extraordinary and unusual items, of $0.63 per share for the fourth quarter on a fully diluted basis, versus a loss, also after extraordinary and unusual items, of $1.08 in the prior year period. For the fiscal year ended December 31, 2001, the Company reported losses, after extraordinary and unusual items, of $4.69 per share on a fully diluted basis. The Company reported cash of $26.4 million at December 31, 2001.

"Our fourth quarter results reflect the beginning of an upturn in our business and an increasing momentum which we expect to continue in 2002," said IMAX Co-Chief Executive Officers Richard L. Gelfond and Bradley J. Wechsler. "In 2001, we achieved significant objectives, including implementing and completing our restructuring plan, retiring a significant amount of debt and laying the foundation to return IMAX to growth. We expect to be profitable in 2002."

During the fourth quarter the Company signed leases for eight new theatre systems versus four in the first nine months of 2001 and three in the fourth quarter of 2000. These signings include the Company's first theatre system with National Amusements, a third system and a 3D system upgrade with the Smithsonian Institution and an additional two system deal with IT International Theatres.

Messrs. Gelfond and Wechsler continued, "2002 is off to a good start with the strong performance of Disney's Beauty and the Beast. The year should continue to be strong as Beauty is followed by our 3D film SPACE STATION, which has signed more leases prior to release than an other film in our history, Disney's Ultimate-X in the spring and James Cameron's Ghosts of the Abyss in the fall. We are particularly excited by Disney's decision to simultaneously release its 2002 holiday animated film Treasure Planet to 35mm and IMAX® theatres. We believe that this unprecedented film slate coupled with our emergence as a new release window for Hollywood product should lead to significant new theatre system sales in the future."

Shortly after the conclusion of the fourth quarter, the Company retired an additional $20 million of its 5.75% Convertible Subordinated Notes due April 2003. In total the Company has retired approximately $90 million of the total $100 million in principal of these Notes at a cost of less than 24% of face value.

In the fourth quarter, the Company's revenues were $33.9 million as compared to $46.3 million in the prior year. Systems revenue was $24.6 million versus $32.8 million in the prior year as the Company recognized revenues on six theatre systems in the fourth quarter of 2001 versus eight theatre systems in the fourth quarter of 2000. Film revenue was $6.6 million versus $10.3 million in the prior year. Other revenue was $2.6 million as compared to $3.3 million in the prior year. The Company had a reported profit of $0.63 per share for the fourth quarter on a fully diluted basis after extraordinary and unusual items as compared to losses of $1.08 per share in the fourth quarter of 2000. The Company's sales backlog was approximately $157 million at December 31, 2001, representing contracts for 60 theatre systems.

For the fiscal year ended December 31, 2001, the Company's revenues were $118.7 million as compared to $173.1 million in the prior-year period. Systems revenue was $76.6 million versus $113.2 million in the prior-year period as the Company recognized revenues on 15 theatre systems, one of which was an operating lease, as compared to 24 theatre systems in the prior-year period. Film revenue was $29.9 million as compared to $41.7 million in the prior year. Other revenue was $12.2 million versus $18.2 million in the prior year in part due to the strong Company-owned theatre revenue in the first four months of 2000 as a result of the release of Fantasia/2000: The IMAX Experience®. For the fiscal year ended December 31, 2001, the Company reported a loss of $4.69 per share on a fully diluted basis after extraordinary and unusual items. The Company's comparative results for the fiscal year ended December 31, 2000 were losses of $3.11 per share, after giving effect to the cumulative effect of changes in accounting principles related to SAB 101 and SOP 00-2.

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 December 2001, 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® 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 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 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, 2000 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

                               IMAX CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
   Amounts in Accordance with United States. Generally Accepted Accounting
                                  Principles
            (in thousands of U.S. dollars, except per share data)
                                 (unaudited)

                              Three months ended              Years ended
                                 December 31,                 December 31,
                              2001          2000         2001          2000
    Revenue
    IMAX systems           $24,628       $32,753      $76,582      $113,226
    Films                    6,611        10,282       29,923        41,711
    Other                    2,619         3,289       12,154        18,179
                            33,858        46,324      118,659       173,116
    Cost of goods and
     services               24,260        37,165       97,391       112,655
    Gross margin             9,598         9,159       21,268        60,461

    Selling, general and
     administrative
     expenses               12,786        22,911       48,962        53,384
    Research and development   376         2,706        3,385         6,497
    Amortization of
     intangibles               733           829        3,005         2,948
    Loss (income) from
     equity-accounted
     investees               (396)         4,320         (73)         4,811
    Restructuring costs and
     asset impairments         189        11,152       59,868        11,152
    Loss from operations   (4,090)      (32,759)     (93,879)      (18,331)

    Interest income            122           320          847         3,285
    Interest expense       (5,523)       (5,686)     (22,020)      (21,961)
    Impairment of
     long-term investments      --       (4,133)      (5,584)       (4,133)
    Foreign exchange
     gain (loss)             (137)           103      (1,357)       (1,781)
    Loss from continuing
     operations before
     income taxes          (9,628)      (42,155)    (121,993)      (42,921)
    Recovery of
     (provision for)
     income taxes          (9,809)        13,080     (11,005)        13,139
    Net loss from
     continuing
     operations           (19,437)      (29,075)    (132,998)      (29,782)
    Net earnings (loss)
     from discontinued
     operations              7,862       (3,471)     (50,850)       (2,055)
    Net loss before
     cumulative effect of
     changes in accounting
     principles and
     extraordinary items  (11,575)      (32,546)    (183,848)      (31,837)
    Cumulative effect of
     changes in accounting
     principles, net of
     income tax benefit
     of $37,286                 --            --           --      (61,110)
    Extraordinary gain
     on repurchase of
     convertible
     subordinated notes,
     net of income tax
     expense of $16,843     31,209            --       38,734            --
    Net earnings (loss)    $19,634     $(32,546)   $(145,114)     $(92,947)

    Per share data :
    Earnings (loss) per
     share - basic
     and diluted:

    Net loss from
     continuing operations
     before income taxes   $(0.31)       $(1.40)      $(3.95)       $(1.44)


    Net loss from
     continuing
     operations            $(0.62)       $(0.97)      $(4.30)       $(1.00)
    Net earnings (loss)
     from discontinued
     operations              $0.25       $(0.11)      $(1.64)       $(0.07)
    Net loss before
     cumulative effect
     of changes in
     accounting principles
     and extraordinary
     items                 $(0.37)       $(1.08)      $(5.94)       $(1.07)
    Cumulative effect of
     changes in accounting
     principles                $--           $--          $--       $(2.04)
    Extraordinary items      $1.00           $--        $1.25           $--
    Net earnings (loss)      $0.63       $(1.08)      $(4.69)       $(3.11)
    Weighted average number
     of shares
     outstanding (000's)
    Basic and diluted       31,286        30,039       30,916        29,874