NEW YORK, Oct. 4, 2011 (GLOBE NEWSWIRE) -- IMAX Corporation (NYSE:IMAX) (TSX:IMX) today announced that CJ CGV HOLDINGS, LTD, a subsidiary of Korean media conglomerate CJ CGV Co. Ltd., has signed a revenue share agreement to add 15 new IMAX® digital theatre systems in the People's Republic of China.
Under the terms of the agreement, CJ CGV HOLDINGS, LTD is scheduled to install the first IMAX systems in 2011, with all remaining installations expected to be completed between 2013 and 2017. Today's announcement brings CJ CGV's IMAX commitment to a total of up to 50 theatres: 20 in South Korea and 30 IMAX revenue share theatres in China. With today's announcement, CJ CGV is the second-largest IMAX exhibitor in Asia and the fourth-largest worldwide.
"We have had great success with our existing IMAX theatres, and the brand is tremendously popular with audiences in Asia and around the world," said Mr. Kim Joo Hyung, CEO of CJ CGV. "We look forward to offering our patrons a fantastic slate of Hollywood event movies and mainstream Chinese films, and the world's most immersive cinema experience, with these 15 new IMAX locations."
"Building on existing successful relationships is fundamental to our network growth strategy," said IMAX CEO Richard L. Gelfond. "We are very pleased to expand our strong partnership with CJ CGV, China's largest international exhibitor, to broaden our global footprint and bring The IMAX Experience to even more moviegoers in China."
"CJ CGV has proven an excellent exhibition partner for IMAX in the Asia Pacific region, and we are delighted to continue working with them as they expand their network in China," said Jiande Chen, CEO of IMAX China.
"The fact that so many of our existing exhibition partners open more new IMAX locations underscores the appeal of our business model for exhibitors and the demand for The IMAX Experience by consumers," added Don Savant, IMAX's Senior Vice President and Managing Director, Asia Pacific. "This agreement strengthens our relationship with a top-notch exhibitor and our box office participation in an increasingly important market."
IMAX's digital projection system delivers The IMAX Experience® and helps drive profitability for studios, exhibitors and IMAX theatres by eliminating the need for film prints, increasing program flexibility and ultimately increasing the number of movies shown on IMAX screens. The system can run both IMAX and IMAX® 3D presentations.
About CJ CGV HOLDINGS, LTD
CJ CGV HOLDINGS is a wholly-owned subsidiary of CJ CGV, and is incorporated under the laws of Hong Kong. CJ CGV HOLDINGS was established by CJ CGV specifically to oversee the expansion of theater business throughout Greater China.
About CJ CGV
CJ CGV operates South Korea's largest multiplex cinema chain, with its headquarters in Seoul. It is a subsidiary of CJ Group and was established in 1996. CGV opened its first multiplex cinema in Korea in April 1998. Since the opening of its first cinema in eastern Seoul, CGV has expanded and currently operates 655 screens over 81 sites nationwide. CGV opened its first overseas branch in Shanghai, China in late 2006 and opened its first North American branch in Los Angeles, California in June 2010. The company went public in December 2004 and is currently valued at US$450 million. CGV now has 45% of the market share in South Korea including Primus, its subsidiary multiplex chain with 186 screens in 25 sites nationwide.
About IMAX China
IMAX China is a wholly-owned subsidiary of IMAX Corporation, and is incorporated under the laws of Hong Kong. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China.
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment and technology companies, specializing in the creation and delivery of premium, awe-inspiring entertainment experiences. With a growing suite of cutting-edge motion picture and sound technologies, and a globally recognized entertainment brand, IMAX is singularly situated at the convergence of the entertainment industry, innovation and the digital media world. The industry's top filmmakers and studios are utilizing IMAX theatres to connect with audiences in extraordinary ways, and as such, the IMAX network is among the most important and successful theatrical distribution platforms for major event films around the globe. The Company's new digital projection and sound systems - combined with a growing blockbuster film slate - are fueling the rapid expansion of the IMAX network in established markets such as North America, Western Europe, and Japan, as well as emerging markets such as China and Russia. IMAX theaters deliver the world's best cinematic presentations using proprietary IMAX®, IMAX 3D®, and IMAX DMR® (Digital Re-Mastering) technologies. IMAX DMR enables virtually any motion picture to be transformed into the unparalleled image and sound quality of The IMAX Experience®.
IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Beijing and Shanghai. As of June 30, 2011, there were 560 IMAX theatres (417 commercial multiplex, 25 commercial destination and 118 institutional) operating in 46 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 (www.youtube.com/imaxmovies).
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This press release contains forward looking statements that are based on IMAX 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 IMAX, competitive actions by other companies, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes in law or regulations, conditions, 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 and any future international expansion, foreign currency fluctuations and IMAX's prior restatements and the related litigation. These factors and other risks and uncertainties are discussed in IMAX's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.