IMAX(R) Theatre Contract Signing Momentum Continues
Consumer Appetite for The IMAX Experience(R), Strong Line-Up of Hollywood Releases Drive Exhibitor Interest in IMAX Business
MOSCOW, July 22, 2010 (GLOBE NEWSWIRE) -- IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) and Rising Star Media, Russia's leading international theatrical exhibitor, today announced an agreement to expand their relationship by adding an additional IMAX location in Moscow following the success of the exhibitor's first three IMAX locations in St. Petersburg and Moscow. The new IMAX® theatre is scheduled to open in January 2011, bringing the total number of IMAX theatres scheduled to be in operation in Russia by 2012 to thirteen. With this new IMAX theatre contract signing, IMAX has signed deals for 104 IMAX systems year-to-date, which compares to 35 system signings in all of 2009.
The announcement follows a string of exceptional box office performances from Rising Star's IMAX screens in Moscow and St. Petersburg, Russia, which operate to the public under the KinoStar name. The recent releases include Disney's Alice in Wonderland, DreamWorks Animation's Shrek Forever After, and Disney's Toy Story 3.
"It is clear that there is consistently strong interest and demand for The IMAX Experience® amongour patrons," said Paul B. Heth, Chief Executive Officer of Rising Star Media. "The tremendous, market leading box office grosses of our Kinostar venues with IMAX and the impressive line-up of Hollywood films scheduled for release in IMAX's format makes this the right time to expand our relationship. We look forward to delivering The IMAX Experience to even more of our customers and further capitalizing on the revenue generating potential of the IMAX theatre business."
"We remain focused on expanding our IMAX footprint around the world and particularly in powerful new markets like Russia," said IMAX CEO, Richard L. Gelfond. "We are pleased to continue to grow in this country with such an excellent exhibition partner and we're optimistic that we can continue to grow our relationships, and capitalize on our strong film slate, with Rising Star Media and others in the Russian market."
Mr. Gelfond continued, "This has been a year of unprecedented growth for the international IMAX network. We believe the momentum we are experiencing, combined with our strong film slate and attractive business model, gives us increased visibility into our future growth and we look forward to continuing to expand with both new and existing exhibition partners in the months and years ahead."
"Rising Star Media is one of the leading exhibitors in Russia, and their decision to add another IMAX location serves as a great endorsement of our business model," added Larry T. O'Reilly, IMAX's Executive Vice President, Theatre Development. "It is always encouraging to have an existing partner add more IMAX locations, and we are very excited to work with them to build on the tremendous success they have already had with the IMAX business."
About Rising Star Media
Rising Star Media, owned by Shari E. Redstone and Paul B. Heth in partnership with UFG Asset Management, is Russia's leading international theatrical exhibitor with Russia's top grossing cinema complexes in Moscow and St. Petersburg. Rising Star Media was established with the goal of creating a world-class cinema circuit in the rapidly expanding Russian market. [For more information, please visit] www.kinostardelux.ru.
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, 122 institutional) operating in 47 countries.
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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.