Cinepolis to Open Multiplex-Based IMAX Theatres as Much as Two Years Ahead of Schedule

Highly Successful Debut of Cinepolis Perisur IMAX Theatre in Mexico City Drives Accelerated Rollout

TORONTO and MEXICO CITY, Jan. 10 /PRNewswire-FirstCall/ - IMAX Corporation (Nasdaq: IMAX; TSX: IMX) and Cinepolis, the largest exhibitor in Latin America and eighth largest in the world with more than 1,100 screens, today announced an agreement to open two new IMAX(R) theatres at Cinepolis multiplexes in Mexico. The theatre systems are part of the agreement previously announced in September 2004 and were originally not scheduled to open until mid-2006 and late-2007, respectively. However, with the newly opened Cinepolis Perisur IMAX Theatre in Mexico City recording impressive box office performance and emphatic consumer response to The IMAX Experience(R), Cinepolis has now decided to open these IMAX theatres in the first and fourth quarters of 2005. The first will be in Monterrey, Mexico, with the specific location of the second to be announced.

"We are extremely pleased with how an IMAX theatre has impacted our flagship multiplex in Mexico City - driving box office performance, enabling us to charge a premium price for a premium experience, and 'wowing' our audiences," said Alejandro Ramirez, Deputy CEO of Cinepolis. "We are confident we can replicate this success at other multiplexes throughout our network and felt the time was right to accelerate the rollout of additional IMAX theatres. We look forward to offering more of our patrons blockbuster Hollywood films in IMAX's format for the first time."

Since opening to the public on November 19th, the Cinepolis Perisur IMAX Theatre has consistently sold out more than 90% of its weekend showings and has twice added additional shows to accommodate heavy consumer demand. The addition of an IMAX theatre has also helped increase weekday attendance at the multiplex by more than 20 per cent.

"The success of Cinepolis' first IMAX theatre and decision to more rapidly open additional sites helps enhance its position as a leading exhibitor in Latin America," said IMAX Co-CEO's and Co-Chairmen Richard L. Gelfond and Bradley J. Wechsler. "Cinepolis' outstanding results have been the product of marrying a world-class exhibitor and a great location with the most immersive way to experience Hollywood event films. We believe this formula, combined with the strength of IMAX's developing 2005 commercial film slate, bodes well for our expansion in Mexico and beyond this year."

Cinepolis will retrofit an existing large format auditorium for the installation in Monterrey, while the other site will be a new addition built onto an existing multiplex. Both locations will be capable of showing Hollywood films that have been converted into IMAX's format using IMAX DMR(R) (Digital Re-mastering) technology, as well as original 2D and IMAX(R) 3D films.

About Cinepolis

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Founded in 1971, Cinepolis is the largest chain of cinemas in Latin America, with a total of 1,121 screens. Cinepolis is the leading exhibitor in Mexico, where it holds 45 per cent of the market share, and also has operations in Costa Rica and Guatemala, with openings scheduled soon in Panama. Cinepolis has a rich tradition of innovation, as evidenced by its new alliance with IMAX, through which it intends to bring Mexican moviegoers a powerful and unique cinematic experience, as well as further differentiate its entertainment offering.

About IMAX Corporation

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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 (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; CINEPOLIS, Mexico - Ramon Ramirez
Luis Villavicencio, (52) 44 33 22 62 11, lvillavicencio@Cinepolis.com.mx;
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
(IMX. IMAX)