Rapid Growth of IMAX(R) Theatre Network Continues with Deals Signed in Six New Latin American Markets in Just Twelve Months

24 IMAX Theatres Now Scheduled to be Open in Latin America by 2008

TORONTO, Dec. 19 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ: IMAX; TSX: IMX) today announced an agreement with RACIMEC International Group, a leading entertainment developer in South America, to install three IMAX theatre systems into new entertainment retail developments in Chile and Venezuela. Two IMAX theatres are scheduled to open in Santiago, Chile, with one to open in Caracas, Venezuela. The deal was signed on the heels of a record-breaking box office year for digitally re-mastered Hollywood blockbusters in IMAX theatres worldwide. IMAX has entered six new markets in South and Central America during the past twelve months, reflecting the continued success and momentum of the company's international expansion.

"Latin America has become a significant growth market for IMAX," said IMAX Co-CEOs and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "The strong performance of IMAX theatres showing Hollywood blockbusters is driving theatre signings in new markets worldwide. We are delighted to enter into this partnership with RACIMEC International Group, a well-respected innovator of consumer entertainment in South America. RACIMEC International Group's developments will introduce millions of consumers in Chile and Venezuela to The IMAX Experience - and based on past experience in other markets, we are confident this will continue to accelerate growth in the entire Latin American region."

"The overnight success of the multiplex-based IMAX theatres in Mexico demonstrates the strong consumer demand and potential for unique and premium entertainment in Latin America," said Miguel Sfeir, President of RACIMEC International Group. "We are excited to offer moviegoers in Chile and Venezuela a powerful cinematic experience they can't get anywhere else. We believe that digitally re-mastered Hollywood blockbusters and original IMAX documentary-style films in 2D and IMAX 3D will attract people of all ages at all times of the day to our complexes. Coupled with a premium ticket price that audiences are clearly willing to pay in other Latin American markets, we are confident we will be able to generate significant incremental revenue for our business."

IMAX has now entered seven new markets in Latin America, with IMAX theatres scheduled to be open in Argentina, Brazil, Chile, Costa Rica, Ecuador, Guatemala and Venezuela. The new IMAX theatres in Chile are expected to open in the second quarters of 2007 and 2008. The IMAX theatre in Venezuela is expected to open in the third quarter of 2007.

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

About RACIMEC International Group

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Founded in Rio de Janeiro, Brazil, in August 1966, as one of the most prominent Public Gaming Companies in the world, developing gaming applications such as Lotto and Soccer Lottery, for various Latin American countries including Brazil, Chile, Argentina, Venezuela, Colombia and Paraguay. The RACIMEC International Group has reached outstanding success in various countries with its starring game KINO, a pre-printed ticket game with a real time live TV show, crossing over the 4 billion dollar barrier during the last decade. RACIMEC has been identified by the Lottery market as the creator of new standards in Game operation and safety in the different countries where it operates.

About IMAX Corporation

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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), The IMAX Experience(R) and An IMAX 3D Experience 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, Romi Schutzer, (212) 821-0144, rschutzer@imax.com; RACIMEC International Group, Santiago, Chile, Daniel A. Sfeir, (562) 218-7333; Business Media: Sloane & Company, New York, Whit Clay, (212) 446-1864, wclay@sloanepr.com; Analysts: IMAX Corporation, New York, Cheryl Cramer, (212) 821-0121, ccramer@imax.com; Entertainment Media: Newman & Company, Los Angeles, Al Newman, (310) 278-1560, asn@newman-co.com