AEREN R Enterprises Adds Fourth IMAX(R) Theatre after First Launch in New Delhi

NEW YORK, NY, Jan. 5 /PRNewswire-FirstCall/ - IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today announced that prominent real estate developer AEREN R Enterprises signed an agreement to add a fourth IMAX(R) theatre to its original three-theatre commitment. The decision follows a strong year for multiplex-based IMAX theatres in India, which play Hollywood blockbusters that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience(R). AEREN R Enterprises has opened its first IMAX theatre in New Delhi in November 2005, which was timed to coincide with the wide release of Harry Potter and Goblet of Fire: The IMAX Experience. Eleven IMAX theatres are scheduled to be open in India by 2008.

"IMAX sees a huge opportunity in India, and we believe our relationship with AEREN R Enterprises will continue to increase brand awareness and drive signings momentum throughout the country," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "We are encouraged by the strong performance of IMAX theatres in India. This commercial real estate developer is now expanding its commitment to the IMAX theatre business, which reflects the growing consumer demand for The IMAX Experience in this important market."

"Moviegoers in India clearly regard IMAX theatres as the best place to experience Hollywood blockbusters," said Dr. Rajesh J Aeren, Vice Chairman of AEREN R Enterprises. "Our first IMAX theatre in New Delhi has enabled us to differentiate our business from our competitors, and we are excited to include our fourth IMAX theatre as an anchor attraction in our highly anticipated commercial development in Ludhiana."

The new IMAX theatre is expected to open in April 2008 in the city of Ludhiana. It will utilize IMAX MPX(R) technology, which was specifically designed to enable multiplex operators to more cost effectively enter into the IMAX theatre business, either by retrofitting an existing stadium seating auditorium or via an economical new build. AEREN R Enterprises' new IMAX theatre will be capable of playing Hollywood event films that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions in 2D and IMAX(R) 3D.

About AEREN R Enterprises

AEREN R Enterprises is one of the country's leading social infrastructure development conglomerates, engaged in value added real estate projects that include edutainment, entertainment, specialty malls, corporate trading and financial services. AEREN R Enterprises currently has one IMAX theatre operating under the management of Adlabs Films Limited in New Delhi. Three other IMAX theatres are scheduled to open in Kolkata, Jaipur and Ludhiana by 2008.

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 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 September 30, 2005, there were 261 IMAX theatres operating in more than 38 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'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 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, Sarah Gormley, (212) 821-0144, sgormley@imax.com; Business Media: Sloane & Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com; Analysts: IMAX Corporation, New York, Stephen Abraham, (212) 821-0100, ccramer@imax.com; Entertainment Media: Newman & Company, Los Angeles, Al Newman, (310) 278-1560, asn@newman-co.com