Milestone In Digital Cinema Development As IMAXÆ Sells First Commercial DLP Cinemaô Projectors To Multiplex Operator T-Joy

13-Dec-00

Digital Projection, Inc. (DPI) - a wholly owned subsidiary of IMAXÆ Corporation (NASDAQ: IMAX, TSE: IMX) - announced it has sold the first commercial digital DLP Cinemaô projector for use in a multiplex to Japanese cinema operator T-Joy. IMAX and T-Joy Co. Ltd. signed a memorandum of understanding whereby DPI will be the exclusive supplier of DLP Cinemaô projectors to T-Joy for their future digital cinemas for a three-year term, the first of which opened in Hiroshima on December 9, 2000. T-Joy was established in August 2000 by a consortium led by TOEI, a major Japanese film company. T-Joy has also installed a satellite receiver at the Hiroshima location enabling experimental transmission and reception of digital data by satellite to the projectors which use DLP Cinemaô technology by Texas Instruments Inc. (TI).""We are very excited that IMAX and DPI have made digital history with the first sale to a cinema operator of a commercial DLP Cinemaô projector,"" said Richard L. Gelfond and Bradley J. Wechsler, co-CEOs, IMAX Corporation. ""IMAXís expertise in image projection and DPIís pioneering understanding of d-cinema technology should give IMAX a powerful advantage in this marketplace.""DPIís digital cinema projectors display high quality digital images delivered either by satellite or DVD, instead of via traditional 35mm film reels. IMAX believes that its proprietary technology, in addition to TIís new DLP Cinemaô chip, which provides a lower black level and better overall contrast, will help make DPI a leader in the digital cinema projector market.Mr. Gelfond and Mr. Wechsler continued, ""We are very pleased to be working with T-Joy, a company that has the vision and commitment to embrace the exhibition technology of the future and to work with them for the technical and commercial exploitation of the expanding market for digital cinema. IMAX is excited to play an important role in this cinematic milestone."" ""Digital projection is the way of the future. The superior quality image reflects T-Joyís commitment to provide audiences with the best cinematic experience and with the best digital sound commercially available. We are very optimistic about the introduction of this system to Japan,"" said Yusuke Okada, President of T-Joy Ltd. ""IMAX has been the worldís leader in high quality image presentations, and IMAX has applied that knowledge to develop a leading digital cinema projector. Without doubt, IMAX is the ideal partner for T-Joy with which to enter into the world of d-cinema.""Digital cinema or d-cinema refers to conventional movie theatres replacing 35mm film prints and film-based projectors with movies encoded as digital data that are projected using digital projectors. This transformation will allow for a higher quality image to be projected in the theatre and improved sound, as well as a significant reduction in the cost of producing and distributing film prints. DLP Cinemaô projection technology is considered the leading technology to drive this change. For more information about Digital Projection, visit www.digitalprojection.com.