Pakistani Government to Introduce Country's First IMAX(R) Theatre as Part of Education and Entertainment Center

Diverse Audiences Around the World Continue to Embrace The IMAX Experience(R)

LAHORE, Pakistan, Oct. 25 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ: IMAX; TSX: IMX) and the Government of Punjab Province, Pakistan today announced an agreement to install the first ever IMAX theatre in Pakistan. The theatre will be located in Lahore, Pakistan, and be part of a multi-function shopping and entertainment park the Punjab Government is developing. The agreement was reached on September 28th, construction will begin soon and the park is expected to open by September 2005.

"This signing is a testament to the worldwide appeal of The IMAX Experience and its ability to transcend culture and language," said co-chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechlser. "Audiences from San Francisco to Kuwait to Shanghai have been 'wowed' by our educational documentaries, as well as blockbuster Hollywood films converted into IMAX's format, and are paying a premium price for this powerful cinematic experience. We're proud to be entering the country with the support of the Punjab Government and excited to bring IMAX to the people of Pakistan."

"The IMAX Experience is drawing big crowds around the world, and it will provide a compelling reason for Pakistani people and tourists to visit our shopping and entertainment park-driving traffic to the surrounding attractions as well," said Taimur Azmat Osman, Secretary of Information and Culture and Youth Affairs, the Government of the Punjab. "The Lahore IMAX Theatre will offer our citizens a way to learn about space travel, explore the ocean floor and experience some of today's biggest Hollywood releases in the most immersive film format. We very much look forward to introducing IMAX for the first time in Pakistan."

The Lahore IMAX Theatre will serve as an anchor for a shopping and entertainment park that will include retail outlets, a food court, bowling alleys and other attractions. The theatre will be capable of showing IMAX and IMAX 3D films, feature a 12,000-watt digital surround sound system, and be among IMAX's largest, with a screen towering 71 feet high by 95 feet wide and the capacity to seat nearly 700. The first signing in Pakistan follows on IMAX's recent expansion in China, India and Russia, where consumer demand has helped fuel growth of the IMAX theatre network.

About IMAX Corporation

Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies. IMAX's businesses include the creation and delivery of the world's best cinematic presentations using proprietary IMAX and IMAX 3D technology, and the development of the highest quality digital production and presentation. IMAX has developed revolutionary technology called IMAX DMR(R) (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. The IMAX brand is recognized throughout the world for extraordinary and immersive family entertainment experiences. As of June 30, 2004, there were 240 IMAX theatres operating in 35 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(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'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, 2003 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; 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; Entertainment Media: Newman & Company, Los Angeles, Al Newman, (818) 784-2130, asn@newman-co.com; Government of Punjab Province, Pakistan, Taimur Azmat Osman, Secretary of Information and Culture and Youth Affairs, the Government of the Punjab, 92-42-9210081, secyinf@wol.net.pk/ (IMX. IMAX)