Expansion and Extension of Previous Deal Adds to AMC's Leading IMAX Presence in North America
New Agreement Calls for Minimum of 15 Theatres, With Potential for Up to 25
New Theatres Planned to Open in Both Untapped IMAX Markets and Existing AMC IMAX Markets in North America
NEW YORK and KANSAS CITY, Mo., June 1, 2010 (GLOBE NEWSWIRE) -- IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) and AMC Entertainment (AMC), today announced an expansion of the companies' joint venture agreement to include installation of between 15 and 25 new IMAX® theatres in the United States. These theatres, which are part of an amendment to the parties' original 2007 joint venture agreement, are in addition to AMC's current roll-out of 104 IMAX joint venture theatres, 79 of which are in operation and 25 of which are expected to open by the end of 2010 in the United States and Canada.
The companies intend to open the 15 to 25 new IMAX theatres in 2011 in both new markets and some markets where AMC already operates IMAX theatres in North America. Upon completion of the full AMC IMAX theatre roll-out, AMC will operate between 125 and 135 IMAX theatres.
"We are pleased to expand our relationship with IMAX, a valued partner in offering our guests the best out-of-home entertainment experience," said Gerry Lopez, CEO and president, AMC. "Our guests clearly choose to see movies in our IMAX auditoriums because the experience is unparalleled in terms of sight and sound, and it continues to be the premium offering in our portfolio of moviegoing options. We are proud to continue being the largest exhibitor partner of IMAX, and we are committed to providing our guests with the best choices in moviegoing."
Included among the terms of the amended agreement is an increase in the length of the joint venture arrangement for all AMC IMAX theatres – to 10 years from the previous term of seven years – as well as an adjusted allocation of costs to help defray AMC's increased operating expenses.
"Today's announcement is great news for AMC, IMAX and IMAX fans across North America," said Richard L. Gelfond, CEO, IMAX Corporation. "We are pleased to continue to grow with our long-time exhibitor partner AMC, contribute to their continued operational and financial success and bring The IMAX Experience® to more consumers. We are also excited that through this expansion, we expect to increase the number of potential IMAX theatres in North America beyond the 400 locations we originally targeted. We look forward to continuing our growth and success with AMC."
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 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 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. The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of March 31, 2010, there were 438 IMAX theatres (316 commercial, 121 institutional) operating in 47 countries.
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, AnIMAX 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 (http://www.youtube.com/imaxmovies">www.youtube.com/imaxmovies).
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About AMC Entertainment Inc.
Headquartered in Kansas City, Mo., AMC Entertainment Inc. is one of the world's largest theatrical exhibition and entertainment company. With a history of industry leadership and innovation dating back to 1920, the company today serves hundreds of millions of guests annually through interests in 380 theatres with 5,325 screens in five countries. www.amctheatres.com and www.facebook.com/amctheatres
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.