IMAX and Lumiere Pavilions Expand Partnership With Revenue Share Agreement

HONG KONG, Dec. 7, 2011 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX; TSX: IMX) today announced an agreement to install three digital IMAX^® theatre systems across China between Sichuan Lumiere Pavilions Company Limited (Lumiere Pavilions), one of the fastest-growing private movie exhibition chains in China and IMAX Corporation's wholly-owned subsidiary, IMAX China.

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Under the terms of the agreement, the first two theatres are scheduled to open in 2014, with the first opening in Chengdu.  The third theatre is scheduled to open in 2015.  All three IMAX systems will be added into new construction projects. The agreement, signed at the 2011 CineAsia Hong Kong Conference, brings the total number of IMAX theatres open or contracted to open in China to 207. 

The revenue share agreement follows an earlier three-theatre sale agreement between the two companies, announced in June 2010, bringing Lumiere Pavilions' total commitment to six IMAX theatres in operation by 2014. The company's first IMAX Theatre, at the Lumiere CQ Jinyuan Plaza in Chongqing, opened in December 2010. Theatres in Guangzhou and Beijing are scheduled to open in 2012 and 2013 respectively.

"IMAX shares our vision of delivering the most immersive cinematic experience possible," said Jimmy Wu, Chief Executive Officer of Lumiere Pavilions. "We look forward to offering more of our patrons this premium experience with the addition of three new IMAX locations."

"Today we have surpassed 200 signings worldwide for the year - a milestone we're proud to have achieved with one of Asia's leading exhibitors," said IMAX CEO, Richard L. Gelfond. "Our revenue share model continues to gain traction and is now being leveraged by half of the over 200 theatres currently open or in backlog in Greater China. Our agreement with Lumiere Pavilions highlights the appeal of this model, which offers exhibitors greater flexibility and enables them to expand their IMAX footprint at a more rapid pace."  

"Chinese audiences have a deep appreciation of the superior quality that IMAX delivers.  As our brand continues to grow in China, so does consumer acceptance and awareness of the cinema experience in general," said Jiande Chen, CEO, IMAX China.  "With Lumiere Pavilions, we share a dedication to the development of China's cinema industry and we are pleased to partner with them and continue our network expansion."

 "Lumiere Pavilions is synonymous with quality and their high-end theatres leverage some of the industry's most advanced technology," said Don Savant, IMAX's Senior Vice President and Managing Director, Asia Pacific. "This commitment to quality as well as their expertise in operations and marketing makes Lumiere Pavilions an ideal exhibition partner for IMAX and we are pleased to continue working with them."

IMAX's digital projection system delivers The IMAX Experience^® and helps drive profitability for studios, exhibitors and IMAX theatres by eliminating the need for film prints, increasing program flexibility and ultimately increasing the number of movies shown on IMAX screens. The system can run both IMAX and IMAX^® 3D presentations.

About Lumiere Pavilions

Lumiere Pavilions is a cinema investment company specializing in the construction and operation of high-end cinemas in China. Since its establishment, the company has positioned itself as the trendsetter in the industry by way of its global vision, innovative ideas, and adoption of advanced technology. Its introduction of the best practices in design, construction, technology, content, and service in compliance with international standards has garnered acknowledgement from consumer and given success to the company in establishing itself as an international corporate brand of the highest standards amongst its partners. In the field of movie theatre development, operation and distribution, Lumiere possesses its own unique methodology that has been proven and accepted by the industry.

About IMAX China

IMAX (Shanghai) Multimedia Technology Co., Ltd. (IMAX China) is a wholly-owned subsidiary of IMAX Corporation, and is formed under the laws of the People's Republic of China. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China.

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment and technology companies, specializing in the creation and delivery of premium, awe-inspiring entertainment experiences. With a growing suite of cutting-edge motion picture and sound technologies, and a globally recognized entertainment brand, IMAX is singularly situated at the convergence of the entertainment industry, innovation and the digital media world. The industry's top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and as such, the IMAX network is among the most important and successful theatrical distribution platforms for major event films around the globe. The Company's new digital projection and sound systems - combined with a growing blockbuster film slate - are fueling the rapid expansion of the IMAX network in established markets such as North America, Western Europe, and Japan, as well as emerging markets such as China and Russia. IMAX theaters deliver the world's best cinematic presentations using proprietary IMAX^®, IMAX^® 3D, and IMAX DMR^® (Digital Re-Mastering) technologies. IMAX DMR enables virtually any motion picture to be transformed into the unparalleled image and sound quality of The IMAX Experience^®. 

IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Shanghai and Beijing.  As of September 30, 2011, there were 583 IMAX theatres (441 commercial multiplex, 23 commercial destination and 119 institutional) operating in 48 countries.

IMAX^®, IMAX^® 3D, IMAX DMR^®, Experience It In IMAX^®, An IMAX 3D Experience^® and The IMAX Experience^® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).

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, but are not limited to, general economic, market or business conditions, including the length and severity of the current economic downturn, the opportunities that may be presented to and pursued by the Company, competitive actions by other companies, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes in law or regulations, conditions, changes and developments in the commercial exhibition industry, the failure to convert theatre system backlog into revenue, new business initiatives, investments and operations in foreign jurisdictions and any future international expansion, foreign currency fluctuations and the Company's prior restatements and the related litigation.  These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.

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SOURCE IMAX Corporation