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IMAX Enters Three-Theatre Joint Venture With Muvico Theaters, Inc.
IMAX's Joint Venture Strategy Gains Momentum
New Partnership Includes High Profile Location in NYC Area
TORONTO, April 17 /PRNewswire-FirstCall/ - IMAX Corporation
(NASDAQ:IMAX; TSX:IMX) and Muvico Theaters, Inc. today announced a joint
venture agreement for the installation of three IMAX(R) theatre systems at
multiplexes in Florida and New Jersey, including the high profile Xanadu
project at the Meadowlands in East Rutherford, NJ, across the river from
New York City. The announcement marks the second multiple IMAX theatre
joint venture commitment this year, advancing IMAX's joint venture
strategy, which was put in place to supplement the growth of its theatre
network through partnerships with key commercial exhibitors.
Under the terms of the agreement, the first IMAX theatre is expected to
open at the Baywalk 20 in St. Petersburg, Florida, in time for the May 4th
release of Spider-Man 3. The second system will be installed at the
Parisian 20 multiplex in West Palm Beach, Florida and is expected to open
in time for the July 13 release of Harry Potter and the Order of the
Phoenix. The third IMAX theatre is scheduled to be installed in 2008 as
part of a new multiplex in the highly-anticipated Xanadu complex in East
Rutherford, NJ.
"Muvico Theaters operates some of the top performing multiplex
locations in North America and we are delighted with their decision to get
into the IMAX theatre business," said IMAX's Co-Chairmen and Co-CEOs,
Richard L. Gelfond and Bradley J. Wechsler. "Our joint venture strategy is
gaining traction in North America, as IMAX DMR(R) releases such as 300
continue to deliver strong box office performances and leading exhibitors
continue to realize the potential of the IMAX theatre business."
"A big part of our strategy is to offer a premium movie experience that
people can't get at home or in any other type of theatre and IMAX furthers
that objective," said Michael Whalen, President and CEO of Muvico Theaters.
"With major event movies like Spider-Man 3 and Harry Potter and the Order
of the Phoenix coming out in IMAX's immersive format in the coming months,
we feel strongly that now is the right time to enter the IMAX theatre
business."
The new IMAX theatres will be capable of playing Hollywood event films
that have been digitally re-mastered into IMAX's format, as well as
original IMAX productions in 2D and IMAX(R) 3D. IMAX's 2007 film slate
already includes three of the year's most anticipated releases, with 300,
which opened to sellout shows at IMAX theatres worldwide starting on March
9; Spider-Man 3, which opens May 4; and Harry Potter and the Order of the
Phoenix, which opens July 13.
The Meadowlands Xanadu (also known as the Xanadu Project) will be a
retail and entertainment complex in the Meadowlands Sports Complex in New
Jersey. It will be the largest retail and entertainment complex in New
Jersey, and will include 4.8 million square feet of entertainment, sports,
retail, office, and hotel space.
About Muvico Theaters, Inc.
Muvico Theaters was founded in 1984 and currently operates 228 screens
in 12 theatres across the USA. Muvico Theaters' average number of screens
per location is 19.5, the highest in the industry. Its strategy is to
develop, acquire and operate state-of-the-art megaplex theaters in
entertainment centers in mid-sized metropolitan markets and suburban growth
areas of larger metropolitan markets in any suitable location. Muvico
Theaters takes a boutique approach to each project, making it a unique and
breathtaking place to see a movie.
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment technology
companies, specializing in digital and film-based motion picture
technologies. The worldwide IMAX network is among the most important and
successful theatrical distribution platforms for major event Hollywood
films around the globe, with IMAX theatres delivering the world's best
cinematic presentations using proprietary IMAX, IMAX 3D, and IMAX DMR
technology. IMAX DMR is the Company's groundbreaking digital remastering
technology that allows it to digitally transform virtually any conventional
motion picture into the unparalleled image and sound quality of The IMAX
Experience(R). IMAX's renowned projectors display crystal-clear images on
the world's biggest screens, and the IMAX brand is recognized throughout
the world for extraordinary and immersive entertainment experiences for
consumers. As of September 30, 2006, there were 280 IMAX theatres operating
in 40 countries.
IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX MPX(R) and The IMAX Experience(R)
are trademarks of IMAX Corporation. 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 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, the outcome of the Company's
current accounting review, risks arising from potential material weaknesses
in internal control over financial reporting, the ability to satisfy the
reporting covenant by the amended filing deadlines, the extent and impact
of the restatement of our financial statements, the outcome of the appeal
of the NASDAQ Staff Determination letter 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, 2005.
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