The People's Republic of China is Now IMAX's Second Largest Market Deal Marks 50th IMAX Theatre System Signing in the Past 12 Months

TORONTO, June 23, 2005 /PRNewswire-FirstCall via COMTEX/ -- IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today announced an agreement with Suzhou Science and Cultural Art Center Co., Ltd. to install an IMAX(R) MPX(TM) theatre system at an arts, science and commerce center being developed in Suzhou, China. The deal marks a key milestone in IMAX's international growth initiative, as with 25 IMAX(R) theatres now scheduled to be open in the country by 2008, it makes China IMAX's largest market in the world after the United States. The agreement is also IMAX's 50th theatre system signing in the past twelve months, reflecting the rapid rate with which exhibitors are entering the IMAX business.

When IMAX established its Asian headquarters in Shanghai in June 2002, there were just three IMAX theatres open in the country, with two more in development. However, the introduction of the IMAX MPX theatre system and the strong worldwide performance of Hollywood blockbusters in IMAX's format have helped fuel rapid expansion of the IMAX theatre network in international markets, including China. The number of IMAX theatres operating in the country is scheduled to more than double in the coming year, and demand for The IMAX Experience(R) continues to build, with deals for 13 new theatre systems in just the past seven months.

"The IMAX theatre network is expanding very rapidly in China and we continue to see heavy interest across the country - from commercial theatre chains, property developers and institutions," said IMAX Co-CEOs and Co- Chairmen Richard L. Gelfond and Bradley J. Wechsler. "IMAX has a proud legacy in institutional venues, so we're proud our agreement with the Suzhou Science and Cultural Art Center is the one that helps us reach such a significant milestone. We feel international markets represent a huge growth opportunity for IMAX and we plan to continue bringing The IMAX Experience to more moviegoers in China and around the world."

"The IMAX brand is known and respected worldwide, and we believe our IMAX theatre will be an important anchor for the world class facility we're developing," said Mr. Du Jianhua, Board Chairman and General Manager of Suzhou Science and Cultural Art Center Co., Ltd. "The IMAX Experience is also a perfect fit for our center, as we aim to offer the very best in music, science and film. We look forward to offering the people of Suzhou digitally re- mastered event films, as well as entertaining and educational programming, in the most immersive film format."

The IMAX theatre in the Suzhou Science and Cultural Art Center is expected to open in December 2007. It will exhibit Hollywood event films converted into IMAX's proprietary 15/70 film format and a wide range of compelling documentaries in both 2D and IMAX(R) 3D. The theatre will be located by the northern shore of scenic Jinji Lake in the Suzhou Industrial Park and will be a part of a large-scale development of nearly thirteen thousand square meters. The complex will feature a state-of-the-art science museum, opera house, performing dinner theater, cineplex and various commercial facilities. Suzhou, also known as the Venice-of-the-East, is a thriving modern city with rich historical background that dates back more than two thousand years. It has a population of approximately six million people and is centrally located just 45 minutes from Shanghai.

About IMAX Corporation

Founded in 1967, IMAX Corporation (NASDAQ: IMAX; TSX: IMX) 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 March 31, 2005, there were 250 IMAX theatres operating in more than 35 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX(R) MPX(TM) 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'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 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/A 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

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