NEW YORK and BEIJING – March 24, 2011 – IMAX Corporation today announced a 75-theatre joint revenue sharing agreement with Wanda Cinema Line Corporation. IMAX also announced the formation of IMAX China to oversee the expansion of the rapidly growing IMAX business in the market. This agreement with Wanda, which represents IMAX’s first full revenue-sharing agreement in China and its largest single international partnership to date, brings the total number of IMAX theatres slated to be open or in backlog in Greater China to 177 over the next few years. Under the terms of the new partnership, IMAX will install its latest digital theatre system technology into 25 of the exhibitor’s multiplex locations this year, with the remainder to be rolled out in 2012, 2013 and 2014.
Wanda, a wholly-owned subsidiary of Dalian Wanda Group, is the largest cinema operator in the People’s Republic of China, as well as the country’s largest operator of IMAX theatres, with 10 theatres open to date and another 81 theatres in backlog. With today’s announcement, Wanda is poised to become the largest operator of IMAX theatres outside of North America and the second-largest operator of IMAX theatres worldwide with a total commitment of 91 theatres.
Greater China is IMAX’s second-largest market globally, with some of the network’s highest-grossing IMAX theatres in the world. The Company believes that this, coupled with the significant opportunity the Greater China exhibition market presents, provides the strategic rationale for the establishment of IMAX China (Hong Kong), Limited (“IMAX China”), a wholly-owned subsidiary of IMAX. IMAX China was established to oversee the expanding IMAX business in Greater China. IMAX China is also in the process of organizing a wholly foreign-owned entity in the People’s Republic of China in order to manage the day-to-day operations of IMAX China in China.