IMAX Corporation Announces New Revolving Letter of Credit Facility with Bank of Montreal



    
    Company Has Ample Funding for Roll-out of Joint Venture Digital
    Projection Systems
    

    NEW YORK, Oct. 6 /CNW/ - IMAX Corporation (Nasdaq:   IMAX; TSX: IMX) today
announced a new $10 million revolving letter of credit ("LC") facility with
Bank of Montreal, replacing its existing $5 million LC facility with the same
bank. This line, in addition to IMAX's existing $40 million credit facility
and cash on hand, further strengthens the Company's financial capacity to roll
out its joint venture digital projection systems.
    The LC facility will be used primarily for letters of credit, and is
fully insured by the Export Development Corporation of Canada. The LC facility
is in addition to IMAX's $40 million secured credit facility, under which
$20 million has been drawn to date. The Company's current additional borrowing
capacity under the secured credit facility is $10.4 million. IMAX also
estimates having cash and cash equivalents of approximately $37.5 million on
its balance sheet as of the third quarter ended September 30, 2008, compared
to $24.6 million at the end of the second quarter ended June 30, 2008.
    IMAX said it expects the LC credit facility along with its existing
secured credit facility and its solid cash position to provide the Company
with ample funding to continue to execute the successful joint venture
roll-out of its digital projection systems, 14 of which were in operation as
of the end of the third quarter. Four additional digital theatres have opened
since quarter-end, for a total of eighteen.
    As previously announced, on September 26th the Company's first 14 digital
theatres officially debuted with Eagle Eye: The IMAX Experience. The systems
performed well, delivering 100% up-time and box office per-screen averages
that were above the overall IMAX network average. The Company remains on track
to have approximately 40 digital theatres in operation for the release of
Madagascar 2: The IMAX Experience on November 7, 2008, and 45-50 digital
theatres in operation by year end.

    About IMAX Corporation

    IMAX Corporation is one of the world's leading entertainment technology
companies, specializing in immersive 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(R) theatres delivering the world's best movie presentations using
proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is the
Company's groundbreaking digital re-mastering 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
June 30, 2008, there were 302 IMAX theatres operating in 40 countries.
    IMAX(R), IMAX(R) 3D, IMAX DMR(R), IMAX(R) MPX(R), and The IMAX
Experience(R) are trademarks of IMAX Corporation. More information on the
Company can be found at www.imax.com.

    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 ongoing
discussions with the SEC and OSC relating to their ongoing inquiries and the
Company's accounting, the performance of films, the signing of theatre system
agreements, the viability of new technologies, businesses and products, 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, risks arising from potential material weaknesses in
internal control over financial reporting and fluctuations in foreign currency
and in the large format, general commercial exhibition and out-of-home
entertainment markets. 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.





For further information:

For further information: Media: IMAX Corporation, New York, Sarah
Gormley (212) 821-0155, sgormley@imax.com; Entertainment Media: Rogers &
Cowan, Los Angeles, Jason Magner, (310) 854-8128, jmagner@rogersandcowan.com;
Investors: IMAX Corporation, New York, Heather Anthony, (212) 821-0121,
hanthony@imax.com; Business Media: Sloane & Company, New York, Whit Clay,
(212) 446-1864, wclay@sloanepr.com

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IMAX Corporation

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