TORONTO, Dec. 12 /PRNewswire/ -- IMAX Corporation (IMAX) (Nasdaq: IMAX; TSE: IMX) today announced it has sold the first commercial digital DLP Cinema(TM) projector for use in a multiplex to Japanese cinema operator T-Joy. IMAX and T-Joy Co. Ltd. signed a memorandum of understanding whereby IMAX subsidiary Digital Projection International (DPI) will be the exclusive supplier of DLP Cinema(TM) projectors to T-Joy for their future digital cinemas for a three-year term, the first of which opened in Hiroshima on December 9. T-Joy was established in August 2000 by a consortium led by TOEI, a major Japanese film company. T-Joy has also installed a satellite receiver at the Hiroshima location enabling experimental transmission and reception of digital data by satellite to the projectors which use DLP Cinema(TM) technology by Texas Instruments Inc. (TI).

"We are very excited that IMAX and DPI have made digital history with the first sale to a cinema operator of a commercial DLP Cinema(TM) projector," said Richard L. Gelfond and Bradley J. Wechsler co-CEOs, IMAX Corporation. "IMAX's expertise in image projection and DPI's pioneering understanding of d- cinema technology should give IMAX a powerful advantage in this marketplace."

DPI's digital cinema projectors display high quality, digital images delivered either by satellite or DVD instead of via traditional 35mm film reels. IMAX believes that its proprietary technology, in addition to TI's new DLP Cinema(TM) chip, which provides a higher black level and better overall contrast, will help make DPI a leader in the digital cinema projector market.

Messrs. Gelfond and Wechsler continued: "We are very pleased to be working with T-Joy, a company that has the vision and commitment to embrace the exhibition technology of the future and to work with them for the technical and commercial exploitation of the expanding market for digital cinema. IMAX is excited to play an important role in this cinematic milestone."

"Digital projection is the way of the future. The superior quality image reflects T-Joy's commitment to provide audiences with the best cinematic experience and with the best digital sound commercially available. We are very optimistic about the introduction of this system to Japan," said Yusuke Okada, President of T-Joy Ltd. "IMAX has been the world's leader in high-quality image presentations and IMAX has applied that knowledge to develop a leading digital cinema projector. Without doubt, IMAX is the ideal partner for T-Joy with which to enter into the world of d-cinema."

Digital cinema or d-cinema refers to conventional movie theaters replacing 35mm film prints and film-based projectors with movies encoded as digital data that are projected using digital projectors. This transformation will allow for a higher quality image to be projected in the theatre and improved sound as well as a significant reduction in the cost of producing and distributing film prints. DLP Cinema(TM) projection technology is considered the leading technology to drive this change.

T-Joy was established in August 2000 by Toei (listed on the First section of the Tokyo Stock Exchange) and other major Japanese companies primarily for the purpose of developing the cinema multiplex business. The Toei group operates the two largest cinema production studios in Tokyo and Kyoto as well as the largest production studio for animation films and TV programs. Toei produces films, TV programs, videos, animation, educational programs and other film related products. Toei currently has 70 theatres in Japan. The establishment of T-Joy will rapidly expand this number of theatre and cinema complexes. Toei's image division consists of an integrated system of production, distribution and commercial projection. It also manages various aspects of Video, DVD, TV, CATV, satellite broadcasts as well as import/export of second- and third-use licenses. Another division of Toei in the Kyoto Studio manages theme parks (amusement parks), events, estates, hotels, golf courses and other real estate properties.

IMAX Corporation and its subsidiaries comprise one of the world's leading entertainment technology companies, with particular emphasis on film and digital imaging technologies, including giant-screen images, 3D presentations, digital post-production and digital projection. There were more than 220 IMAX theatres operating in 28 countries around the world as of September 30, 2000. IMAX's subsidiaries include Digital Projection International, whose primary business is the design and manufacture of high-end digital image delivery devices, Sonics Associates, a designer and manufacturer of high-end sound systems and DKP/70MM Inc., award-winning specialists in image quality control and post-production. IMAX has forged strategic alliances and relationships with some of the most prominent corporations in the world including Famous Players Inc. (a subsidiary of Viacom Inc.), America Online Inc. and Texas Instruments Inc. IMAX Corporation is a publicly traded company listed on both the Toronto and Nasdaq stock exchanges. More information on the Company can be found at http://www.imax.com.

This press release contains forward looking statements that are based on management 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 effect 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 viability of new businesses and fluctuations in foreign currency and in the 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, 1999 and in the subsequent reports filed by the Company with the Securities and Exchange Commission.

DLP Cinema(TM) is a trademark of Texas Instruments Inc. SOURCE IMAX Corporation

CONTACT:
Victoria Dinnick
IMAX Corporation, Toronto
905-403-6366
vdinnick@imax.com

Stephen Abraham
IMAX Corporation, New York
212-821-0140
sabraham@imax.com

4-10-5 ginza tyuuo-ku Tokyo of T-Joy Co. Ltd.
+81-3-3248-8172

Entertainment Media
Al Newman of Newman & Company
Los Angeles
310-777-5252
asn@newman-co.com/