IMAX reiterates that activist bondholder has no grounds to default or accelerate senior notes

    Catalyst Fund's Latest Action Follows Seven Previous Unsuccessful
    Attempts to Trigger Company Default

    TORONTO, Oct. 31 /CNW/ - IMAX Corporation (NASDAQ:  IMAX; TSX:IMX) today
characterized the latest in a long series of attempts by a single Company
bondholder to place the Company in default under its debt covenants and
disrupt its business as a publicity stunt.
    For over seven months, Catalyst Fund Limited Partnership has been seeking
to find ways to default the Company under the indenture ("Indenture")
governing its $160 million of 9 5/8% Senior Notes due December 1, 2010 (the
"Senior Notes").  After an unsuccessful attempt to oppose the Company's April
2007 consent solicitation to its bondholders, and seven failed attempts to
trigger a default under the Indenture, Catalyst now purports to accelerate the
maturity of the Senior Notes, despite the fact that it has no rights or
grounds to do so under the Indenture.
    In May, Catalyst disregarded the explicit limitations of the Indenture
and began filing lawsuits against the Company. First, it filed a civil action
in New York, claiming that IMAX committed fraud in connection with the
solicitation process. Then, in September, Catalyst filed an application in
Canada that repeated the allegations made in New York and moved to discontinue
its New York proceeding.
    IMAX has at all times complied with the Indenture covenants and the cure
periods provided therein. The Company remains in compliance with the Indenture
and no default or event of default (as those terms are defined in the
Indenture) has occurred or is continuing.

    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 June 30, 2007, there were 290 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

    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 outcome of
the accounting review and related matters discussed in this press release, 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, risks arising from potential material weaknesses in
internal control over financial reporting, the ability to satisfy the
reporting covenant by the amended filing deadlines, risks associated with the
inability to obtain the requisite consents, the extent and impact of the
restatement of our financial statements 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.

For further information:

For further information: Media: IMAX Corporation, New York, Sarah
Gormley, (212) 821-0155,; Entertainment Media: Newman &
Company, Los Angeles, Al Newman, (310) 278-1560,; Investors:
Integrated Corporate Relations, Amanda Mullin, (203) 682-8243; Business Media:
Sloane & Company, New York, Whit Clay, (212) 446-1864,

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