Leading Retail Developer Tacla Shopping Selects The IMAX Experience(R) as Anchor Attraction for Largest Mall in South Brazil

TORONTO, Oct. 20 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ: IMAX; TSX: IMX) today announced an agreement with Tacla Shopping, a leading Brazilian retail developer, to install an IMAX MPX(R) theatre system in what is expected to be the largest mall in South Brazil. Located in Curitiba, one of the most progressive and technically advanced cities in Brazil, the two million square foot Palladium Shopping Center will offer the city's two million residents the finest in entertainment and shopping. IMAX has signed deals this year to open IMAX(R) theatres in four new Latin American markets, reflecting the continued success of the company's international expansion strategy.

"IMAX theatres have been very successful in premiere retail entertainment destinations around the world, and the first rate facility Tacla is developing in Curitiba will be an ideal venue for The IMAX Experience(R) in Brazil," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "Entering emerging markets such as China and India has helped drive rapid growth for IMAX the last few years, and we believe that Brazil - a vast and completely untapped market with a population of more than 186 million - also holds great potential for expansion of our theatre network. We are confident that bringing IMAX to one of Brazil's most innovative cities will help drive demand from developers and exhibitors throughout the rest of the country and the Latin American region."

"The compelling economics of the IMAX MPX theatre system, coupled with the impressive grosses of Hollywood blockbuster in IMAX's format, convinced us that an IMAX theatre was the perfect anchor attraction for our retail development," said Anibal Tacla, Managing Director of Tacla Shopping. "The IMAX Experience has been embraced by audiences throughout Mexico and Latin America, and we believe IMAX's diverse programming will be an asset to Curitiba's moviegoers, offering great family entertainment and community education. We're very excited to work with IMAX to revolutionize moviegoing in Brazil and are confident that Brazilian audiences will be amazed by this premium, unparalleled movie experience."

The IMAX theatre in Curitiba will be capable of showing Hollywood blockbusters, as well as a wide variety of educational and cultural IMAX films, in both 2D and IMAX(R) 3D. The IMAX MPX theatre system was specifically designed to enable multiplex operators to more cost effectively enter into the IMAX theatre business, by retrofitting an existing stadium seating auditorium or via an economical new build.

In addition to the IMAX theatre, the Palladium Shopping Center is expected to have approximately 356 stores, a 10-theatre multiplex, 8 restaurants and a food court with 23 stations. Tacla Shopping will host a press conference in Curitiba on October 26 to unveil the details of the new mall and an IMAX representative will be participating.

About IMAX Corporation

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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; Tacla Shopping, Curitiba, Brazil, JJ Online, Joao Jose Werzbitzki, JJ, (011) 55-41-9181-8082, jjonline2@hotmail.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