Seven IMAX(R) Theatres to be Open in Russia by 2008

Commercial Exhibitors in Emerging Markets Increasingly Including IMAX as Part of Development Plans

TORONTO, Oct. 12 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ: IMAX; TSX: IMX) today announced an agreement with ZAO Kompaniya Perspektiva, the largest exhibitor in Ufa, Russia, to install an IMAX MPX(R) theatre system as part of an expansion to the exhibitor's flagship multiplex. Located in central Russia, with a population of more than one million, Ufa becomes the fourth Russian city where The IMAX Experience(R) is set to debut in the coming year. Multiplex-based IMAX(R) theatres are also slated to open in Kazan, Perm and St. Petersburg next year, and the total number of IMAX theatres scheduled to be operating in the country by 2008 is now seven.

"The IMAX MPX system has tremendously expanded the growth potential of the IMAX theatre network, and we've been especially encouraged by the widespread adoption amongst leading exhibitors in emerging markets, such as ZAO Perspektiva in Ufa, Russia," said IMAX Co-Chairmen and Co-CEOs Richard L. Gelfond and Bradley J. Wechsler. "IMAX has been embraced by Russian audiences, with moviegoers in Moscow regularly paying as much as $14 to experience today's biggest blockbusters in IMAX's format, and we're excited that many more Russians will soon be able to have this amazing cinematic experience. We believe new theatre openings will drive additional awareness of IMAX in Russia and further accelerate our momentum in this rapidly developing market."

"IMAX has become synonymous with the best in moviegoing, and IMAX's digitally re-mastered blockbusters have posted strong box office returns in Russia, so we felt an IMAX theatre was an obvious choice for our flagship theatre complex in Ufa," said Konstantin Vorontsov, Owner of ZAO Perspektiva. "The IMAX Experience will differentiate our cinema from all others in Ufa, and enable us to charge a premium ticket price for a premium cinematic experience. We believe an IMAX theatre will continue to solidify our multiplex as the number one venue to experience movies in Ufa."

ZAO Kompaniya Perspektiva's IMAX theatre is scheduled to open during the fourth quarter of 2006. It will be capable of playing Hollywood event films converted into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions in 2D and IMAX (R) 3D. Ufa is the capital of Bashkortostan, a republic within the Russian Federation, located in central Russia.

About ZAO Kompaniya Perspektiva

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ZAO Kompaniya Perspektiva's Planeta Kino cinemas is the leading theatre chain in Bashkortostan, Russia, with fourteen screens in four theatre complexes in the region. Kino Iskra, where the IMAX Theatre will be located, is the top performing location in Ufa and is located directly in the heart of the city. The complex is also adding a vast array of other entertainment elements to cement its place as "the" place to go for family friendly entertainment.

About IMAX Corporation

Founded in 1967, IMAX Corporation is the newest distribution platform for Hollywood content and one of the world's leading entertainment technology companies. IMAX delivers the world's best cinematic presentations using proprietary IMAX, IMAX 3D, and IMAX DMR(R) technology. IMAX DMR (Digital Re-mastering) makes it possible for virtually any 35mm film to be transformed 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. As of June 30, 2005, there were 259 IMAX theatres operating in more than 36 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX MPX(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information on the Company can be found at 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 deliveries, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, the performance of films, the viability of new businesses and products, 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, 2004 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

SOURCE IMAX Corporation

CONTACT: Media: IMAX Corporation, New York, Romi Schutzer, (212) 821-0144, rschutzer@imax.com; Entertainment Media: Newman & Company, Los Angeles, Al Newman, (310) 278-1560, asn@newman-co.com; Analysts: IMAX Corporation, New York, Cheryl Cramer, (212) 821-0121, ccramer@imax.com; Business Media: Sloane & Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com