Agreement Builds on Success of Existing Theatre; Capitalizes on Strong Consumer Interest in The IMAX Experience(R) and Box Office Success
Largest State-Owned Film Enterprise to Operate a Total of Three IMAX(R) Theatres by End of 2012
NEW YORK and SHANGAI, China, Sept. 8, 2010 (GLOBE NEWSWIRE) -- IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) and China Film Group Corporation, China's largest state-owned film enterprise, today announced an agreement to expand their partnership with the installation of two additional IMAX systems. The first system is scheduled for installation in the city of Shenzhen, and is expected to open in 2011. The second system is scheduled for installation in the city of Ningbo, and is expected to open in 2012. Today's agreement brings the total number of IMAX theatres to be operated by China Film Group to three by the end of 2012 and the total number of IMAX theatres scheduled to be operating in China to 67 by 2014. With this theatre announcement, the Company's announced number of theatre systems signings year-to-date has increased to 130 worldwide, which compares to 35 system signings in all of 2009.
"Our first IMAX location, which opened in January, has improved the performance of our complex by delivering incremental box office returns and a broader range of Hollywood films, and we're looking forward to IMAX releasing important Chinese films, such as John Woo's Flying Tigers," said Mr. Han Sanping, Chairman of China Film Group Corporation. "We are very pleased to expand our relationship with IMAX."
IMAX's Chief Executive Officer, Richard L. Gelfond, commented from Shanghai, "As a studio and exhibitor, China Film Group is an excellent strategic partner for IMAX. We're very pleased to expand our relationship with them to feed consumer demand in China with more locations and a broader range of content for Chinese moviegoers."
Don Savant, Senior Vice President & Managing Director, Asia Pacific, added, "We believe the recent performance of Inception in IMAX 2D demonstrated Chinese consumers' appetite for the premium IMAX experience with sixteen IMAX theatres generating approximately 7 percent of the total China box office on 0.0037 percent of the 3,816 total movie screens exhibiting the film."
About China Film Group
China Film Group Corporation (CFGC) is the most comprehensive and extensive state-owned film enterprise in China. CFCG facilitates film production, distribution and exhibition as a coordinated process and integrates film, TV and video into a single entity.
Since its establishment in 1999, CFGC has produced more than 200 feature films.
Every year CFGC is able to distribute 100-plus films. CFGC distributed blockbusters such as The Redcliff, Forever and Enthralled, The Warlords, The Promise, The Curse of Golden Flowers, The Fearless and The Banquet.
In recent years, CFGC has formed 7 cinema circuits with equity investment and contracted more than 400 theatres, which accounts for 40% market share of Chinese box-office. It is now building its own proprietary cinema circuit with an objective of 100 multiplexes.
CFGC is also the sole importer of foreign theatrical movies in China and a major exporter of Chinese films. CFGC has established business relationships with more than 400 film institutions from more than 100 countries and regions. Its annual event Beijing Screenings has become an important window to showcase China's film culture to the world and exchange platform for film co-productions. More information about the Company can be found at www.chinafilm.com.
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 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 June 30, 2010, there were 447 IMAX theatres (325 commercial, 122 institutional) operating in 47 countries.
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 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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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, but are not limited to, general economic, market or business conditions, including the length and severity of the current economic downturn, the opportunities that may be presented to and pursued by the Company, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes and developments in the commercial exhibition industry, the failure to convert theatre system backlog into revenue, new business initiatives, investments and operations in foreign jurisdictions, foreign currency fluctuations and the Company's prior restatements and the related litigation and ongoing inquiries by the SEC and the OSC. 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.