Company Has Ample Funding for Roll-out of Joint Venture Digital
    Projection Systems

NEW YORK, Oct. 6 /PRNewswire-FirstCall/ - IMAX Corporation (Nasdaq: IMAX; TSX: IMX) today announced a new $10 million revolving letter of credit ('LC') facility with Bank of Montreal, replacing its existing $5 million LC facility with the same bank. This line, in addition to IMAX's existing $40 million credit facility and cash on hand, further strengthens the Company's financial capacity to roll out its joint venture digital projection systems.

The LC facility will be used primarily for letters of credit, and is fully insured by the Export Development Corporation of Canada. The LC facility is in addition to IMAX's $40 million secured credit facility, under which $20 million has been drawn to date. The Company's current additional borrowing capacity under the secured credit facility is $10.4 million. IMAX also estimates having cash and cash equivalents of approximately $37.5 million on its balance sheet as of the third quarter ended September 30, 2008, compared to $24.6 million at the end of the second quarter ended June 30, 2008.

IMAX said it expects the LC credit facility along with its existing secured credit facility and its solid cash position to provide the Company with ample funding to continue to execute the successful joint venture roll-out of its digital projection systems, 14 of which were in operation as of the end of the third quarter. Four additional digital theatres have opened since quarter-end, for a total of eighteen.

As previously announced, on September 26th the Company's first 14 digital theatres officially debuted with Eagle Eye: The IMAX Experience. The systems performed well, delivering 100% up-time and box office per-screen averages that were above the overall IMAX network average. The Company remains on track to have approximately 40 digital theatres in operation for the release of Madagascar 2: The IMAX Experience on November 7, 2008, and 45-50 digital theatres in operation by year end.

About IMAX Corporation

IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies.