IMAX Signs a Four Theatre Deal in China With Orange Sky Golden Harvest Cinemas

HONG KONG, Dec. 7, 2011 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX; TSX: IMX) today announced an agreement to install four new digital IMAX^® theatre systems across China between Orange Sky Golden Harvest (China) Cinemas Co., Ltd., a wholly-owned subsidiary of Orange Sky Golden Harvest Entertainment (Holdings) Limited (HKSE: 1132) (OSGH), a leading film exhibition, distribution and production company and IMAX's wholly-owned subsidiary, IMAX China.

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Under the terms of the agreement, the first theatre system is scheduled to be installed in the Tianjin Milky Way International Shopping Centre in Tianjin in December 2012. The second IMAX theatre will be installed in the Guangzhou Feishi Plaza in Guangdong and is slated to open in September 2013. The remaining two systems are scheduled for installation by the end of 2014. All four IMAX systems will be added into new construction projects.

"IMAX is a powerful differentiator from the in-home entertainment experience, which is prompting more and more Chinese consumers to seek this out-of-home entertainment," said Andrew Mao, CEO, OSGH. "We believe in the value that IMAX will bring to our business and are excited to add four new IMAX theatres as the flagship attractions to our top locations."

"We're in the early stages of our expansion in China, as is the cinema industry overall.  While our network has increased to over 200 theatres open or in backlog today, there are still 35 cities in China with a population of at least one million people that have no movie theaters," said Richard L. Gelfond, CEO, IMAX.  "We are pleased to partner with one of the premier film and entertainment companies in Asia to help meet the increasing demand and support our expansion in this high growth region."

"OSGH is a pioneer in the Asian film industry and was one of the first companies to bring the multiplex concept to Singapore," said Jiande Chen, CEO, IMAX China. "They share our legacy of innovation and together we are excited to bring The IMAX Experience to more audiences in China."

"The fact that one of the biggest media companies in Asia is looking to IMAX to grow their business, is a tremendous endorsement of the value that we deliver to our exhibitors," added Don Savant, IMAX's Senior Vice President and Managing Director, Asia Pacific.  "Today's agreement with OSGH highlights the value of the IMAX brand and builds on the continued momentum of our aggressive network expansion in China."

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 Orange Sky Golden Harvest (China) Cinemas Co., Ltd.

Orange Sky Golden Harvest (China) Cinemas Co., Ltd. is a wholly-owned subsidiary of OSGH, a leading integrated film entertainment company in the markets where it operates and primarily engages in exhibition, distribution, production and financing in Asia, with a focus on growing its business in the Mainland China. As of October 2011, the Group operates 48 multiplexes with collectively 371 screens across Mainland China, Hong Kong, Taiwan and Singapore and is one of the leading distributors in its operating territories.

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