Sathyam Cinemas Doubles Commitment to IMAX with Third Theatre System Agreement

IMAX(R) MPX(TM) Continues to Drive Expansion of IMAX(R) Theatre Network in India

TORONTO, July 6 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ: IMAX; TSX: IMX) and Sathyam Cinemas, a top commercial exhibitor in India, today announced an agreement to install two IMAX(R) MPX(TM) theatre systems at Sathyam Cinemas' multiplexes in India. The deal is the third between IMAX and Sathyam and marks the second time the exhibitor has doubled the number of IMAX(R) theatres it plans to open in the country. Sathyam Cinemas now has a total of four IMAX theatres scheduled to be installed in its multiplexes, with the first to open next year in Chennai, India and three more at locations to be announced. India remains one of IMAX's fastest growing markets, with eleven IMAX theatres now scheduled to be open in the country by 2008.

"India is a vast market that holds a great deal of growth potential for IMAX," said IMAX co-Chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechlser. "We have been delighted with the success of the multiplex-based IMAX theatres in this region and very pleased with exhibitor response to the IMAX MPX value proposition. We are optimistic that Sathyam Cinemas doubling its commitment will fuel further interest and growth for IMAX in India."

"We want to offer moviegoers a compelling reason to visit Sathyam Cinemas and The IMAX Experience(R) has proven to accomplish this, serving as a significant draw for commercial exhibitors in India," said Kiran Reddy, Managing Director, Sathyam Cinemas. "Indian moviegoers are paying a premium ticket price for blockbusters in IMAX's format, and we've been very impressed with the recent films' grosses in Hyderabad and Mumbai."

Sathyam Cinemas' first IMAX theatre is anticipated to open in Chennai, India in March 2006 at one of the most heavily trafficked cinemas in the country, to be followed by another location that will open in Chennai in 2008. The other two IMAX theatres will open in 2007 and 2008 at yet to be announced locations.

All of Sathyam Cinemas' IMAX theatres will be capable of playing Hollywood event films converted into the unparalleled image and sound quality of The IMAX Experience, as well as original IMAX productions in 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.

About Sathyam Cinemas

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Sathyam Cinemas was founded over thirty years ago in Chennai, India and is the leading exhibitor in the state of Tamil Nadu. Its flagship location in Chennai is the highest attended cinema complex in India. Sathyam prides itself on being at the forefront of cinema technology in India.

About IMAX Corporation

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Founded in 1967, IMAX Corporation is one of the world's leading entertainment technology companies and the newest distribution window for Hollywood films. 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 March 31, 2005 there were 250 IMAX theatres operating in more than 35 countries.

IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX(R)MPX(TM), 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, Romi Schutzer, (212) 821-0144, rschutzer@imax.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