Imax Corporation Announces Commitment To Be A Leading Provider Of Digital Projectors For Conventional Movie Theatres

Imax Corporation (NASDAQ: IMAX) (TSE: IMX) announced that it is moving ahead with the design of a new generation of advanced Digital Light Processingô (DLPô) Cinema projectors based upon Texas Instrument's DLP Cinemaô technology which has been used by Texas Instruments (TI) to digitally project such films as ""Star Wars: Episode I - The Phantom Menace,"" ""Toy Story 2"" and ""Bicentennial Man"" in Beta tests over the past eight months. Earlier on the same day, Texas Instruments announced that Christie Systems, Inc. would also be a licensee of DLP Cinema technology. Imax, through its Digital Projection International (DPI) subsidiary, plans an aggressive roll-out of the advanced digital projectors as soon as the DLP Cinema technology is fully accessible. DPI intends to manufacture and market the DLP-based projectors to commercial movie theatres currently using 35mm film-based display technology. There are estimated to be more than 75,000 movie projectors around the world, most of which are expected to be converted to digital in the next 10 years representing a multi-billion dollar market opportunity.""We believe that digital cinema is the way of the future for the commercial film industry,"" said Imax Co-CEOs Richard L. Gelfond and Bradley J. Wechsler. ""Imax will be one of the few exclusive licensees to use this transforming technology to drive widespread usage of digital projectors in conventional movie theaters. We believe eventually all film-based projectors in movie theaters around the world will be replaced with digital projectors and DPI is in a unique position to be a leader in this industry as TI's longest standing projection partner."" According to Mike Levi, President of Digital Projection, Inc., Imax's subsidiary, ""Digital Projection has been at the forefront of the D-Cinema (Digital Cinema) technology drive since 1989, when DPI was instrumental in TI's initial development of the Digital Micromirror Devices technology (DMD) that drives these new projectors. DPI's systems have been showcased at premiere events and film festivals around the world. We look forward to introducing a new quality standard to viewers."" Messrs. Wechsler and Gelfond continued, ""The opportunity to be a major player in the technological transformation of the exhibition business through D-Cinema is one of the many benefits we intend to realize from our acquisition of DPI. DPI's digital expertise is providing many new and exciting digital business opportunities that we believe will help create new revenue streams for Imax in the future."" When available, the DLP Cinema imaging chips will be integrated into DPI's complete high-performance electronic projection systems, creating a projector that can display high quality, digital images delivered either by satellite or DVD instead of via traditional 35mm film reels. At the heart of DPI's cinema displays will be three DLP Cinema DMDs - silicon microchips that are capable of reflecting enormous light from high-definition sources with millions of tiny mirrors - while creating well over one billion shades of color digitally.About Imax CorporationImax Corporation is one of the world's leading entertainment technology companies, with particular emphasis on film and digital imaging technologies including 3D, post-production and digital projection, and the IMAXÆ brand is one of the world's most recognized entertainment brands. As of December 31, 1999, there were more than 205 IMAX theatres operating in 25 countries around the world. Imax's subsidiaries include Digital Projection International, whose primary business is the design and manufacture of high-end digital image delivery devices, and Sonics Associates, a design and manufacturer of high-end sound systems. Imax has forged strategic alliances and relationships with some of the most prominent corporations in the world including The Walt Disney Company, Famous Players Inc. (a subsidiary of Viacom Inc.), America Online Inc. and Loews Cineplex Corp. Imax Corporation is a publicly-traded company listed on both the Toronto and NASDAQ stock exchanges. More information on the company can be found at http://www.imax.com. Source: Imax Corporation