Agreement with Chongqing Municipal Government to Bring First IMAX(R) Theatres to the Country's Largest City

Twenty-Two IMAX Theatres to be Open in China by 2008

TORONTO, Jan. 13 /PRNewswire-FirstCall/ - IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today announced its second multi-theatre deal in China in less than two weeks - an agreement with the Chongqing Land Property Group, an institutional entity of the Chongqing municipal government of the People's Republic of China. The agreement is for three IMAX(R) theatres to open at locations in Chongqing, a municipality of more than 32 million people and the commercial capital of southwest China. Under terms of the deal, which is subject to standard formal governmental approval, an IMAX(R) MPX(TM) theatre system will be installed at the Chongqing Movie City multiplex. IMAX theatre systems will also be installed at the Children's Palace and Chongqing Science and Technology Museum. This three-system deal, combined with the six-system deal with Lark International Media announced on January 5th, brings the total number of IMAX theatres scheduled to be open in China by 2008 to twenty-two.

"Commercial and institutional IMAX theatres around the world have registered great success and brought their operators significant benefits - including increased attendance and box office performance," said Mr. Li Yingru, President of Chongqing Land Property Group. "Moviegoers in China have embraced The IMAX Experience(R), and hundreds of thousands have been entertained and educated by IMAX's wide range of large format films. We look forward to bringing the world's most immersive cinematic experience to southwest China for the first time, including a whole new way to see blockbuster Hollywood movies."

"The IMAX theatre network is expanding rapidly in China, and with twenty-two theatres scheduled to be open in the next four years, we believe it will undoubtedly be IMAX's second largest market in the world," said IMAX Co-CEO's and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "This is the first agreement we've signed to bring three theatres to the same city, and it was made possible by our diverse programming options, as well as the favorable economics of the IMAX business. The deal is further proof of the great potential China holds for us and we are very pleased to be working with the Chongqing Land Property Group to grow our presence in the country."

All of the IMAX theatres in Chongqing will be capable of showing films in IMAX's proprietary 15/70 film format - including Hollywood blockbusters re-formatted into the unparalleled picture and sound quality of The IMAX Experience - and feature state-of-the-art, multi-channel digital surround sound systems. In addition, the IMAX theatres at the Chongqing Movie City multiplex and Chongqing Science and Technology Museum will also be capable of presenting IMAX(R) 3D films.

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 September 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; Entertainment Media: Newman &
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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
(IMX. IMAX)