TORONTO, Oct 16, 2002 /PRNewswire-FirstCall via COMTEX/ -- IMAX Corporation (Nasdaq: IMAX; TSX: IMX), the world leader in large format entertainment technology, announced today its launch into South America, signing agreements for a total of four IMAX(R) theatres to be located in Chile and Ecuador. These state-of-the-art giant screen theatres providing the world's best cinematic experience, continue the company's progress on its international expansion efforts and deliver on IMAX's long-term goal to bring The IMAX Experience(R) to new and diverse communities around the globe.

"IMAX's entry into South America with these four new theatres is an exciting moment for our company and is really only the beginning for us in a market that we believe can support many more IMAX theatres in many countries," said Richard L. Gelfond and Bradley J. Wechsler, co-CEOs and co-Chairmen, IMAX Corporation. "We have found that once an IMAX theatre opens in a new region of the World, that theatre typically drives demand for even more theatres and we are optimistic that this will be the case in South America. The combination of the low, but growing, penetration of IMAX theatres around the world and the increasingly strong film slate for IMAX theatres reinforces our confidence that IMAX still has significant opportunities for continued growth."

Both Chile and Ecuador will have two IMAX theatres. In Ecuador, the Malecon 2000 Foundation will operate a theatre utilizing the IMAX(R)Dome technology to be located in Malecon 2000 in Guayaquil, the country's most complete and modern center of urban recreation; the second, an IMAX(R)3D theatre, operated by the Universidad San Francisco De Quito will be located in Cumbaya, Quito. The two IMAX theatres in Chile will be operated by MEGASCREEN S.A., with the first -- utilizing IMAX 3D technology -- to be located in Santiago. A location for the second IMAX theatre in Chile is yet to be determined. All four theatres are scheduled to open by the end of 2003.

"We are constantly looking for new ways to attract audiences to Malecon 2000," said Guillermo Suaya Laprida, Project Manager, Malecon 2000 Foundation. "The IMAX Experience is the highest-quality family friendly entertainment experience available and it's perfect for the patrons that come to Malecon 2000."

"IMAX is a great combination of education and entertainment," said Julio Subercaseaux Mac-Gill, President, MEGASCREEN S.A. "For that reason, we feel that The IMAX Experience, with its diverse film library, is ideal for our consumers in Chile."

During the past six months, launches of several European IMAX theatres located in Vienna, Austria, Nuremberg, Germany and most recently, Katowice, Poland and the first IMAX theatres in China exemplify the strong consumer demand for The IMAX Experience throughout Europe and in emerging markets like Asia. Consumer enthusiasm and support for the launch of the new IMAX theatre in Warsaw, Poland led to the opening of three additional theatres in the region. In addition, IMAX's signing last month of an agreement to open an IMAX 3D theatre in Moscow, Russia further underscores the Company's successful international expansion efforts.

About IMAX Corporation:

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. IMAX has developed revolutionary technology called IMAX(R) DMR(TM) (Digital Re-mastering) that makes it possible for virtually any 35mm film to be transformed into the unparalleled image and sound quality of The IMAX Experience(R). The IMAX brand is recognized throughout the world for extraordinary and immersive family experiences. As of June 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(R), The IMAX Experience(R) and IMAX(R) DMR(TM) are trademarks of IMAX Corporation. More information on the Company can be found at http://www.imax.com.

SOURCE IMAX Corporation

CONTACT:
Media - Romi Schutzer, +1-212-821-0144, rschutzer@imax.com,
Analysts - Stephen G. Abraham, +1-212-821-0140, sabraham@imax.com, both of
IMAX Corporation; Business Media - Whit Clay, Sloane & Company,
+1-212-446-1864, wclay@sloanpr.com; Entertainment Media - Al Newman, Newman &
Company, +1-818-784-2130, asn@newman-co.com, both for IMAX Corporation
/Company News On-Call: http://www.prnewswire.com/comp/103201.html

URL: http://www.imax.com
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