HIGHLIGHTS , Oct 28, 2010 (GlobeNewswire via COMTEX) -- Third Quarter 2010 Adjusted Earnings Per Diluted Share Increased 128% to $0.15; Nine Month 2010 Adjusted Earnings Per Share Increased 442% to $0.81 -- Company Reports Record Third Quarter Revenues of $51.1 million -- 100 Theatre System Signings in Quarter Leads to Increased Network Growth Outlook

TORONTO, Oct. 28, 2010 (GLOBE NEWSWIRE) -- IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) today reported that adjusted net income, which excludes the impact of the change in the value of the Company's variable stock compensation, increased 151% to $9.8 million, or $0.15 per diluted share, in the third quarter of 2010, compared to adjusted net income of $3.9 million, or $0.06 per diluted share, on the same basis in the third quarter of 2009. Total revenue for the third quarter 2010 increased 17% to $51.1 million, compared to $43.5 million in the third quarter of 2009. Reported net income for the third quarter 2010 increased to $6.7 million, or $0.10 per diluted share, from $1.1 million or $0.02 per diluted share in last year's third quarter.

"We are very pleased with our third quarter financial results, which exceeded our expectations and demonstrated the operating leverage that can come with our growing theatre network and a diversified film slate," said IMAX Chief Executive Officer Richard L. Gelfond. "Today, our Company is uniquely positioned at the intersection of the entertainment industry, innovation, and the digital age, which have come together to reinvent the IMAX business in many important ways. We believe the combination of continued consumer enthusiasm for the IMAX brand worldwide, increasing demand from our exhibitor partners and film commitments from studios as far out as 2013 is setting the stage for long-term growth."

For the nine month period ended September 30, 2010, adjusted net income, as defined above, increased to $53.5 million, or $0.81 per diluted share, compared to adjusted net income of $7.6 million, or $0.15 per share on the same basis last year. Total revenues increased 53% to $179.5 million for the nine month period ended September 30, 2010, compared to $117.0 million for the same period last year. Reported net income for the nine month period increased to $46.6 million, or $0.70 per diluted share, compared to $1.0 million, or $0.02 per share in the same period in 2009. For a reconciliation of adjusted net income to reported net income, please see the end of this press release.

Adjusted EBITDA (as defined by the Company's credit facility) increased to $17.3 million and $96.5 million for the third quarter 2010 and last twelve months ended September 30, 2010, respectively, from $13.5 million and $40.3 million for the third quarter 2009 and last twelve months ended September 30, 2009, respectively. For a reconciliation to adjusted EBITDA, please see the tables at the end of this press release.

Theatre System Signings

During the third quarter, the Company signed contracts for 100 theatre systems, compared to 13 theatre systems in the third quarter of 2009. Through the first nine months, the Company has signed contracts for 198 theatre systems, compared to 23 theatre systems for the same period in 2009. For a breakdown of system signings by type, please see the back of this press release. IMAX signed contracts for 35 theatre systems during the full year of 2009.

"This quarter not only reflected the strong demand for The IMAX Experience(R) from moviegoers, but also from exhibitors around the globe," added Mr. Gelfond. "Our international theatres continue to enjoy significant box office growth, with year-to-date per theatre averages that are tracking 25 percent higher than that of our domestic theatres, even excluding Avatar from our results. This is very encouraging as we continue to expand overseas."

Third Quarter Segment Results

For the third quarter of 2010, total film revenue increased 68% to $21.0 million, compared to $12.5 million in the third quarter of 2009. Production and IMAX DMR(R) revenues increased 58% to $12.4 million, compared to $7.8 million in the year ago period. Third quarter DMR revenues were driven by a broader film slate in 2010 versus the same quarter in 2009, as well as by the increased number of IMAX(R) theatres in operation as compared to a year ago.

Gross box office from DMR titles increased 70% to $97.7 million in the third quarter of 2010, compared to $57.6 million in the third quarter of 2009. The per screen average for IMAX DMR titles in the third quarter increased 26% to $320,500 ($262,500 domestic, $450,800 international) versus $253,900 ($235,300 domestic, $290,600 international) in the third quarter of 2009. For title by title detail, please see the end of this press release.

Mr. Gelfond added, "We experienced another strong quarter of box office growth, lead by Christopher Nolan and Warner Bros. Pictures' 2D sci-fi actioner, Inception, which grossed over $50 million in IMAX theatres, making it our fourth highest grossing DMR title of all time. The performance of Inception demonstrated how our fans seek out IMAX because it is the best way to experience a movie, whether in 2D or 3D. As we look ahead to the fourth quarter, we are excited about our coming line-up of titles, which includes DreamWorks Animation's Megamind, part one of Harry Potter and the Deathly Hallows from Warner Bros. and Disney's TRON: Legacy."

For the third quarter of 2010, revenue from joint revenue sharing arrangements increased 89% to $6.5 million, compared to $3.4 million in the prior year period, reflecting an increase in the number of joint revenue sharing theatres in operation as well as higher year-over-year gross box office per screen averages. The Company installed 19 systems under joint revenue sharing arrangements in the quarter, versus six in the same quarter last year. As of September 30, 2010, a total of 144 theatres under joint revenue sharing arrangements were in operation, compared to 96 joint revenue sharing theatres as of September 30, 2009. In the third quarter 2010, joint revenue sharing theatres generated gross box office per screen averages of approximately $268,800, a 44% increase compared to $186,500 in last year's period.

Third quarter IMAX systems revenue decreased 26% to $14.8 million from $20.1 million in the third quarter of 2009, primarily reflecting the installation of three fewer sales-type lease systems versus the year-ago period. The decrease also reflects the lower average revenue recognized per system due to the change in mix of sales-type lease theatres installed this year versus last year. The Company installed and recognized revenue on seven full, new theatre systems with an average value of $1.4 million in the third quarter of 2010, compared to eight full, new systems with an average value of $1.5 million in the third quarter of 2009. The Company also installed three digital upgrades in the third quarter of 2010 compared to five in the same year-ago period.

Third quarter 2010 gross margin increased 38% to $25.9 million from $18.8 million in the third quarter of 2009, and as a percentage of revenues, gross margin increased to 50.8% from 43.2% in the same year-ago period. The increase was largely driven by margin expansion across all of the Company's key business segments, such as DMR, joint revenue sharing arrangements and sales-type lease systems. Gross margin also benefited from increased distribution margin, which primarily reflects the expanded release of Hubble 3D and content licensing revenues.

Theatre System Installations

During the third quarter 2010, the Company installed a total of 29 theatre systems (including upgrades), compared to a total of 19 system installations (including upgrades) in the third quarter of 2009. For a breakdown of system installation by type, please see the back of this press release.

Theatre System Backlog

As of September 30, 2010, the Company's backlog consisted of 257 theatre systems, compared to 163 theatre systems in backlog as of September 30, 2009. Included in the 2010 and 2009 system backlog totals were 82 and 61 theatres, respectively, under joint revenue sharing arrangements and 175 and 102 theatres, respectively, under sales and sales-type lease arrangements.

Network Growth

As a result of the significant level of theatre signing activity in the third quarter, the Company is increasing its expectation for theatre network growth. For the fourth quarter of 2010, the Company now expects to install between 22 to 24 joint revenue sharing systems and 15 and 20 new sales-type lease systems (excluding upgrades).

Reflecting the increased level of expected installation activity in the fourth quarter, the Company now expects to install between 81 and 88 new theatres in fiscal 2010, including 49 to 51 under joint revenue sharing arrangements and 32 to 37 under sales and sales-type lease arrangements, which implies year-over-year commercial multiplex network growth of approximately 30 percent. The Company cautions that installations can slip from period to period, usually for reasons beyond its control.

Conference Call

The Company will host a conference call today at 8:30 AM ET to discuss its third quarter 2010 financial results. To access the call via phone, interested parties should dial (866) 321-8231 approximately 10 minutes before it begins. International callers should dial (416) 642-5213. A recording of the call will be available by dialing (888) 203-1112 or (647) 436-0148. The code for both the live call and the replay is 9454888. The Company will also host a webcast of the conference call, which can be accessed on www.imax.com by clicking on 'Investor Relations.'

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies. The worldwide IMAX network is among the most important and successful theatrical distribution platforms for major event films around the globe, with IMAX theatres delivering the world's best cinematic presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR technology. IMAX DMR is the Company's groundbreaking digital re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of September 30, 2010, there were 470 IMAX theatres (348 commercial, 122 institutional) operating in 45 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, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, 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, 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

Adjusted Net Income

Adjusted net income in third quarter 2010 and third quarter 2009 excludes the impact of the changes in value of the Company's variable stock compensation. The third quarter of 2010 included a $3.1 million increase 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 $2.26 increase in the Company's stock price over the course of the third quarter, which impacts variable stock compensation), as compared to a $2.8 million charge from variable stock compensation in the third quarter of 2009. For a reconciliation of reported net income to adjusted results, please see the tables at the end of this press release.

Gross Box Office from DMR

The primary driver of gross box office in the third quarter was Warner Brothers' Inception: The IMAX Experience, which has generated approximately $51.9 million in worldwide box office to date ($50.4 million of which was captured in the third quarter), for a domestic per screen average of $160,400 and an international per screen average of $204,300. Disney's Toy Story 3: An IMAX 3D Experience, which was released in several international territories this quarter, has generated approximately $31.4 million in worldwide box office to date ($10.0 million of which was captured in the third quarter), for a domestic per screen average of $100,900 and an international per screen average of $136,900. Summit Entertainment's The Twilight Saga: Eclipse: The IMAX Experience has generated approximately $12.6 million in worldwide box office to date ($9.4 million of which was captured in the third quarter), for a domestic per screen average of $60,900 and an international per screen average of $36,800. Sony Pictures' Resident Evil: Afterlife: An IMAX 3D Experience was released to digital IMAX theatres and has generated approximately $9.8 million in worldwide box office to date ($8.9 million of which was captured in the third quarter), for a domestic per screen average of $30,600 and an international per screen average of $111,400. Fourth quarter 2010 gross box office to date is $12 million, an increase of 17% from the same period last year.

2010 Film Slate

Turning to the 2010 film slate,on October 22nd, Paramount Pictures released Paranormal Activity 2: The IMAX Experience to digital IMAX theatres. The remainder of the Company's announced 2010 film slate includes:

DreamWorks Animation's Megamind: An IMAX 3D Experience (November 5th)
Warner Bros. Pictures' Harry Potter and the Deathly Hallows: Part I: The IMAX Experience (November 19th)

Walt Disney Pictures' TRON: Legacy: An IMAX 3D Experience (December 17th)

2011 Film Slate

To date, IMAX has announced nine DMR titles to be exhibited in 2011, including:

TRON: Legacy: An IMAX 3D Experience (Walt Disney Pictures, continued from 2010)
The Green Hornet: An IMAX 3D Experience (Sony Pictures, January 14th)
Mars Needs Moms: An IMAX 3D Experience (Walt Disney Pictures, March 11th)
Sucker Punch: The IMAX Experience (Walt Disney Pictures, March 25th)
Pirates of the Caribbean: On Stranger Tides: An IMAX 3D Experience (Walt Disney Pictures, May 20th)
Fast Five: The IMAX Experience (Universal Pictures, June 10th)
Cars 2: An IMAX 3D Experience (Walt Disney Pictures, June 24th)
Harry Potter and the Deathly Hallows: Part II: An IMAX 3D Experience (Warner Bros. Pictures, July 15th)
Happy Feet 2: An IMAX 3D Experience (Warner Bros. Pictures, November 18th)

The Company remains in active negotiations with every studio regarding future titles.

Theatre System Signings

During the third quarter of 2010, the Company signed contracts for 100 theatre systems (30 joint venture systems, 51 sales/sales-type lease systems and 19 digital upgrades), compared to contracts for 13 theatre systems (11 sales/sales-type lease systems and two digital upgrades) in the third quarter of 2009. Through the first nine months of 2010, the Company has signed contracts for 198 theatre systems (67 joint venture systems, 90 sales/sales-type lease systems and 41 digital upgrades), compared to 23 theatre systems (17 sales/sales-type lease systems and six digital upgrades) during the same period in 2009.

Theatre System Installations

In the third quarter of 2010, the Company installed a total of 29 theatre systems (19 joint venture systems, including one digital upgrade; and 10 sales/sales-type lease systems, including three digital upgrades), compared to having installed 19 theatre systems (six joint venture systems, including one digital upgrade; and 13 sales/sales-type lease systems, including five digital upgrades) in the third quarter of 2009. Through the first nine months of 2010, the Company has installed a total of 69 theatre systems (29 joint venture systems, including two digital upgrades; and 40 sales/sales-type lease systems, including 23 digital upgrades), compared to having installed 80 theatre systems (52 joint venture systems, including eight digital upgrades; and 28 sales/sales-type lease systems, including 10 digital upgrades) during the same period in 2009.

                                  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           Nine Months
                                         Ended September 30,   Ended September 30,
                                        --------------------  --------------------
                                           2010       2009       2010       2009
                                        ---------  ---------  ---------  ---------
  Revenues
  Equipment and product sales            $ 13,539   $ 18,217   $ 41,533   $ 38,714
  Services                                 28,499     19,278     97,522     57,744
  Rentals                                   7,420      4,283     36,623     15,528
  Finance income                            1,211      1,052      3,372      3,125
  Other                                       400        646        400      1,862
                                        ---------  ---------  ---------  ---------
                                           51,069     43,476    179,450    116,973
                                        ---------  ---------  ---------  ---------
  Costs and expenses applicable to
   revenues
  Equipment and product sales               6,673      8,727     22,825     19,793
  Services                                 15,776     13,619     47,953     35,583
  Rentals                                   2,691      1,961      7,403      7,293
  Other                                        --        390         --        635
                                        ---------  ---------  ---------  ---------
                                           25,140     24,697     78,181     63,304
                                        ---------  ---------  ---------  ---------
  Gross margin                             25,929     18,779    101,269     53,669
  Selling, general and administrative
   expenses                                16,051     12,756     46,713     35,917
   (including share-based compensation
    expense of $4.1 million and
   $9.7 million for the three and nine
    months ended September 30, 2010,
   respectively (2009 -- $3.2 million
    and $7.8 million, respectively))
  Research and development                  1,509        998      3,971      2,731
  Amortization of intangibles                 106        144        351        424
  Receivable provisions, net of
   recoveries                                  70         89        436      1,078
                                        ---------  ---------  ---------  ---------
  Income from operations                    8,193      4,792     49,798     13,519
  Interest income                              77         23        374         49
  Interest expense                          (374)    (3,094)    (1,561)   (11,592)
  Gain (loss) on repurchase of Senior
   Notes due December 2010                     --      (220)         --        224
                                        ---------  ---------  ---------  ---------
  Income from continuing operations
   before income taxes                      7,896      1,501     48,611      2,200
  Provision for income taxes              (1,160)      (344)    (1,991)      (885)
                                        ---------  ---------  ---------  ---------
  Income from continuing operations         6,736      1,157     46,620      1,315
  Loss from discontinued operations            --       (95)         --      (333)
                                        ---------  ---------  ---------  ---------
  Net Income                              $ 6,736    $ 1,062   $ 46,620      $ 982
                                        =========  =========  =========  =========
  Net income per share - Basic:
   Net income per share from
    continuing operations                  $ 0.11     $ 0.02     $ 0.73     $ 0.03
   Net income per share from
    discontinued operations                    --         --         --     (0.01)
                                        ---------  ---------  ---------  ---------
                                           $ 0.11     $ 0.02     $ 0.73     $ 0.02
                                        =========  =========  =========  =========
  Net income per share - Diluted:
   Net income per share from
    continuing operations - diluted        $ 0.10     $ 0.02     $ 0.70     $ 0.03
   Net income per share from
    discontinued operations - diluted          --         --         --     (0.01)
                                        ---------  ---------  ---------  ---------
                                           $ 0.10     $ 0.02     $ 0.70     $ 0.02
                                        =========  =========  =========  =========
  Weighted average number of shares
   outstanding (000's):
   Basic                                   63,731     58,390     63,450     49,574
   Fully Diluted                           66,654     60,710     66,497     50,934
  Additional Disclosure:
  Depreciation and amortization(1)        $ 4,812      5,567   $ 15,508     14,629
  (1) Includes $0.1 million of amortization of deferred financing costs charged to
   interest
  expense for the three months ended September 30, 2010 (September 30, 2009 --
   $0.2 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
                              September    December
                                 30,         31,
                                2010         2009
                             -----------  ----------
                             (unaudited)
  Assets
  Cash and cash equivalents     $ 45,494    $ 20,081
  Accounts receivable, net
   of allowance for
   doubtful accounts of
   $2,547
  (December 31, 2009 --
   $2,770)                        35,700      37,652
  Financing receivables           65,476      62,585
  Inventories                     17,630      10,271
  Prepaid expenses                 3,153       2,609
  Film assets                      2,700       3,218
  Property, plant and
   equipment                      64,102      54,820
  Other assets                    10,061      15,140
  Goodwill                        39,027      39,027
  Other intangible assets          2,238       2,142
                             -----------  ----------
  Total assets                 $ 285,581   $ 247,545
                             ===========  ==========
  Liabilities
  Bank indebtedness             $ 21,875    $ 50,000
  Accounts payable                24,837      16,803
  Accrued liabilities             66,259      77,853
  Deferred revenue                72,152      57,879
                             -----------  ----------
  Total liabilities            $ 185,123   $ 202,535
                             -----------  ----------
  Shareholders' equity
  Capital stock, common
   shares -- no par value.
   Authorized -- unlimited
   number.
   Issued and outstanding
    -- 63,811,797 (December
    31, 2009 -- 62,831,974)    $ 287,722   $ 280,048
  Other equity                     7,264       6,044
  Deficit                      (195,368)   (241,988)
  Accumulated other
   comprehensive income              840         906
                             -----------  ----------
  Total shareholders'
   equity                        100,458      45,010
                             -----------  ----------
  Total liabilities and
   shareholders' equity        $ 285,581   $ 247,545
                             ===========  ==========

                           IMAX CORPORATION
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
   In accordance with United States Generally Accepted Accounting
                              Principles
                   (In thousands of U.S. dollars)
                             (Unaudited)
                                                    Nine Months
                                                Ended September 30,
                                               --------------------
                                                  2010       2009
                                               ---------  ---------
  Cash provided by (used in):
  Operating Activities
  Net income                                    $ 46,620      $ 982
   Net loss from discontinued operations              --        333
  Items not involving cash:
   Depreciation and amortization                  15,508     14,629
   Write-downs, net of recoveries                    982      1,712
   Change in deferred income taxes                   517        158
   Stock and other non-cash compensation          10,116      9,030
   Foreign currency exchange gain                  (395)    (1,078)
   Gain on repurchase of Senior Notes due
    December 2010                                     --      (224)
   Change in cash surrender value of life
    insurance                                      (107)      (306)
  Investment in film assets                      (7,648)    (6,881)
  Changes in other non-cash operating assets
   and liabilities                              (11,892)    (4,687)
  Net cash provided by operating activities
   from discontinued operations                       --      (389)
                                               ---------  ---------
   Net cash provided by operating activities      53,701     13,279
                                               ---------  ---------
  Investing Activities
  Purchase of property, plant and equipment      (3,898)      (754)
  Investment in joint revenue sharing
   equipment                                     (6,550)   (18,147)
  Investment in new business ventures            (2,167)         --
  Cash surrender value of life insurance           7,797         --
  Acquisition of other assets                      (691)      (561)
  Acquisition of other intangible assets           (450)      (208)
                                               ---------  ---------
   Net cash used in investing activities         (5,959)   (19,670)
                                               ---------  ---------
  Financing Activities
  Repayment of bank indebtedness                (28,125)         --
  Repurchase of Senior Notes Due December
   2010                                               --   (54,692)
  Common shares issued - public offerings,
   net of offering expenses paid                      --    130,850
  Shelf registration fees paid                        --      (150)
  Common shares issued - stock options
   exercised                                       5,871      3,288
                                               ---------  ---------
   Net cash (used in) provided by financing
    activities                                  (22,254)     79,296
                                               ---------  ---------

  Effects of exchange rate changes on cash          (75)    (1,230)
                                               ---------  ---------
  Increase in cash and cash equivalents
   during the period                              25,413     71,675
  Cash and cash equivalents, beginning of
   period                                         20,081     27,017
                                               ---------  ---------
  Cash and cash equivalents, end of period      $ 45,494   $ 98,692
                                               =========  =========

                            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 owns and operates certain IMAX theaters. The other segment includes camera rentals and other miscellaneous items.

                               Three Months           Nine Months
                            Ended September 30,   Ended September 30,
                           --------------------  ----------------------
                              2010       2009       2010        2009
                           ---------  ---------  ----------  ----------
  Revenue
  IMAX systems
   Sales and sales-type
    leases                  $ 12,344   $ 17,639    $ 35,303    $ 37,455
   Ongoing rent, fees,
    and finance income         2,502      2,431       7,825       7,406
                           ---------  ---------  ----------  ----------
                              14,846     20,070      43,128      44,861
                           ---------  ---------  ----------  ----------
  Theater system
   maintenance                 5,274      4,502      15,342      13,295
                           ---------  ---------  ----------  ----------
  Joint revenue sharing
   arrangements                6,484      3,432      33,914      12,532
                           ---------  ---------  ----------  ----------
  Film
   Production and IMAX
    DMR                       12,377      7,822      50,369      23,658
   Distribution                7,137      3,339      14,279      10,075
   Post-production             1,529      1,368       6,447       2,755
                           ---------  ---------  ----------  ----------
                              21,043     12,529      71,095      36,488
                           ---------  ---------  ----------  ----------
  Theater operations           2,182      2,247      11,085       7,961
                           ---------  ---------  ----------  ----------
  Other                        1,240        696       4,886       1,836
                           ---------  ---------  ----------  ----------
  Total                     $ 51,069   $ 43,476   $ 179,450   $ 116,973
                           =========  =========  ==========  ==========

  Gross margins
  IMAX systems(1)
   Sales and sales-type
    leases                   $ 6,885    $ 9,027    $ 16,165    $ 18,504
   Ongoing rent, fees,
    and finance income         2,354      2,163       7,493       6,116
                           ---------  ---------  ----------  ----------
                               9,239     11,190      23,658      24,620
                           ---------  ---------  ----------  ----------
  Theater system
   maintenance                 2,502      2,109       6,862       6,740
                           ---------  ---------  ----------  ----------
  Joint revenue sharing
   arrangements(1)             4,031      1,749      27,343       6,729
                           ---------  ---------  ----------  ----------
  Film
   Production and IMAX
    DMR(1)                     7,632      2,840      33,956      12,524
   Distribution(1)             2,788        675       4,249       1,664
   Post-production                55        211       2,946         906
                           ---------  ---------  ----------  ----------
                              10,475      3,726      41,151      15,094
                           ---------  ---------  ----------  ----------
  Theater operations           (255)      (176)       1,556         326
                           ---------  ---------  ----------  ----------
  Other                         (63)        181         699         160
                           ---------  ---------  ----------  ----------
  Total                     $ 25,929   $ 18,779   $ 101,269    $ 53,669
                           =========  =========  ==========  ==========

  -----------------------
  (1) IMAX systems include commission costs of $0.4 million and $1.0
   million for the three and nine months ended September 30, 2010,
   respectively (2009 -- $0.8 million and $1.4 million, respectively).
   Joint revenue sharing arrangements segment margins include
   advertising, marketing and commission costs of $1.1 million and $2.4
   million for the three and nine months ended September 30, 2010,
   respectively (2009 -- $0.3 million and $2.5 million, respectively).
   Production and DMR segment margins include marketing costs of $0.6
   million and $1.4 million for the three and nine months ended
   September 30, 2010, respectively (2009 -- $0.5 million and $1.1
   million, respectively). Distribution segment margins include
   marketing costs of less than $0.1 million and $0.3 million for the
   three and nine months ended September 30, 2010, respectively (2009
   -- $0.2 million and $0.6 million, respectively).

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

Credit Facility Requirements:

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 0.23:1 at September 30, 2010, 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 $21.9 million. EBITDA is calculated as follows:

                                                 3 Months  12 Months
                                                  ended      ended
                                                September  September
                                                   30,        30,
                                                   2010     2010(1)
                                                ---------  ---------
  Net earnings                                    $ 6,736   $ 50,659
  Add (subtract):
   Provision for income taxes                       1,160      1,380
   Interest expense net of interest income            297      3,390
   Depreciation and amortization including
    film asset amortization                         4,726     19,471
   Write-downs net of recoveries including
    asset impairments and receivable
    provisions                                        404      1,851
   Stock and other non-cash compensation            4,066     20,269
   Other, net                                        (89)      (541)
                                                ---------  ---------
                                                 $ 17,300   $ 96,479
                                                =========  =========
  (1) Ratio of funded debt calculated using twelve months ended
   EBITDA.

Adjusted Diluted Earnings Per Share Calculation:

                                    Q3 2010   Q3 2009   YTD 2010  YTD 2009
                                   --------  --------  ---------  --------
  Net earnings                      $ 6,736   $ 1,062   $ 46,620     $ 982
  Add:
   Variable stock compensation        3,066     2,847      6,914     6,585
                                   --------  --------  ---------  --------
  Adjusted net earnings             $ 9,802   $ 3,909   $ 53,534   $ 7,567
                                   ========  ========  =========  ========

  Diluted shares outstanding         66,654    60,710     66,497    50,934
                                   ========  ========  =========  ========
  Adjusted earnings per share        $ 0.15    $ 0.06     $ 0.81    $ 0.15
                                   ========  ========  =========  ========

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

SOURCE: IMAX Corporation

CONTACT: IMAX Corporation, New York
Investors:
Heather Anthony
212-821-0121
hanthony@imax.com
Media:
Sarah Gormley
212-821-0155
sgormley@imax.com
Sloane & Company, New York
Business Media:
Whit Clay
212-446-1864
wclay@sloanepr.com
Principal Communications Group, Los Angeles
Entertainment Media:
Melissa Zuckerman
melissa@pcommgroup.com
Paul Pflug
paul@pcommgroup.com
323-658-1555