IMAX Signs International Joint Venture Deal with One of Japan's Largest Exhibitors

http://www.imax.com/corporate/content/investor/intro.jsp

 

    Tokyu Recreation's 109 Cinemas Enters IMAX Business with Up to Four

    Joint Venture Locations in Japan

 

    IMAX(R) Digital Continues to Drive IMAX's Joint Venture Business

 

TORONTO, July 17 /PRNewswire-FirstCall/ - IMAX Corporation (NASDAQ:IMAX; TSX:IMX) and Tokyu Recreation, the owner of 109 Cinemas (10 is "To" and 9 is "kyu"), one of Japan's largest exhibition chains, today announced a joint venture agreement to install up to four IMAX(R) theatres in Japan. The agreement marks IMAX's second international joint venture deal, as the Company aligns itself with top exhibitors worldwide with its new IMAX(R) Digital theatre system. To date, IMAX has signed contracts for more than 180 IMAX Digital theatre systems, with approximately 50 expected to be installed by the end of 2008.

 

The announcement follows a record-setting movie event in Japan, where 25,000 people, the largest IMAX audience ever for a single screening, enjoyed the Japanese premiere of Speed Racer: The IMAX Experience on June 29 at the Tokyo Dome. The Tokyo Dome, which is a traditional venue for concerts and sporting events, was converted into a huge IMAX theatre for the event.

 

Under the terms of the joint venture agreement, IMAX and Tokyu Recreation will share the cost and profitability of the new theatres. The first theatre is scheduled to be installed at the 109 Cinemas Kawasaki in the city of Kawasaki in November of this year, followed by another in early 2009 at the 109 Cinemas Shobu in the city of Shobu. Each theatre will be equipped with IMAX's new digital projection system. The third and fourth systems are subject to mutual agreement on sites, projected rates of return and certain other factors.

 

"IMAX's new digital theatre system offers us the best of both worlds - we can deliver an immersive cinematic experience that cannot be replicated at home or in a conventional theatre, and we can enjoy the economical and logistical benefits of a digital theatre system," said Hitoshi Sato, President of Tokyu Recreation. "Over the past four decades, people in Japan have recognized the IMAX brand as being synonymous with the world's most immersive cinematic experience, and we are excited to become a part of that prestigious recognition, as our locations transform into destinations for consumers who want to see Hollywood's biggest movies in the most powerful format."

 

"Exhibitor response to our IMAX Digital system has been extremely positive in North America and now we're starting to see increasing enthusiasm internationally," said IMAX's Co-Chairmen and Co-CEOs, Richard L. Gelfond and Bradley J. Wechsler. "Japan is an important market for IMAX, and we believe this partnership, combined with our new digital theatre system, will serve as a catalyst for further expansion into additional international commercial markets."

 

The highly anticipated IMAX Digital projection delivers The IMAX Experience(R) 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. IMAX Digital theatres will be capable of presenting Hollywood movies that have been digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience with IMAX DMR(R) technology in both IMAX and IMAX(R) 3D, as well as original IMAX 3D documentary-style movies that are entertaining and educational.

 

The current IMAX film slate for the remainder of 2008, 2009 and 2010 includes:

 

    The Dark Knight - Warner Bros. Pictures - July 18, 2008

    Madagascar 2: Escape 2 Africa - DreamWorks Animation - November 7, 2008

    Harry Potter and the Half Blood Prince - Warner Bros. Pictures -

    November 21, 2008

    Under the Sea 3D - Warner Bros. Pictures - February, 2009

    Monsters vs. Aliens 3D - DreamWorks Animation - March, 2009

    Hubble 3D (working title) - Warner Bros. Pictures - February, 2010

    How to Train Your Dragon 3D - DreamWorks Animation - March, 2010

    Shrek Goes Fourth 3D - DreamWorks Animation - May, 2010

 

    About Tokyu Recreation 109 Cinemas

 

Tokyu Recreation Co., Ltd. belongs to the Tokyu Group which is one of the biggest enterprise groups. The main company of the group is Tokyu Corporation. Tokyu Recreation is responsible for the entertainment business which plays an important role in the group. Tokyu Recreation has more than 60-year experience as an exhibitor and operates 15 cinema complexes such as "109 Cinemas" chain as well as 9 first-run movie theatres in Japan. Besides the theatre business as a core, it has two other businesses: Sports and Leisure Business to operate bowling alleys and futsal facilities and Real-Estate Leasing Business such as master-leasing of real estate. In regard to the theatre business, it keeps opening new cinema complexes actively in major cities and areas in Japan.

 

About IMAX Corporation

 

IMAX Corporation is one of the world's leading digital entertainment and technology companies. 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. IMAX's renowned projectors and new digital systems display crystal-clear images on the world's biggest screens. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of March 31, 2008, there were 298 IMAX theatres operating in 40 countries.