IMAX's Joint Venture Strategy Gains Momentum
New Partnership Includes High Profile Location in NYC Area
TORONTO, April 17 /CNW/ - 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
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
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 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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