Applies to: IMAX VIA AOL TXN)
Imax Corporation Cancels Strategic Alternative Process
TORONTO, Oct 13, 2000 /PRNewswire via COMTEX/ -- IMAX Corporation (Nasdaq: IMAX;
TSE: IMX) today announced that due to the recent decline in its stock price, the
Company has decided to end the formal process of examining strategic
alternatives including a potential sale of the Company.
"We and the Board of Directors believe that the Company's stock price does not
accurately reflect the Company's long-term value," said IMAX's co-Chief
Executive Officers Richard L. Gelfond and Bradley J. Wechsler. "As a result, we
do not believe that in the current environment it makes sense to move forward
with a formal strategic alternative process though we will continue to look for
ways to maximize shareholder value."
IMAX Corporation and its subsidiaries comprise one of the world's leading
entertainment technology companies, with particular emphasis on film and digital
imaging technologies, including giant-screen images, 3D presentations, digital
post-production and digital projection. There were more than 220 IMAX(R)
theatres operating in 26 countries around the world as of June 30, 2000. 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 designer 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 Famous Players Inc. (a subsidiary of Viacom
Inc.), America Online Inc. and Texas Instruments Inc. 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 imax.com.
This press release contains forward-looking statements that are based on
management 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 effect these statements include the timing of theatre system
deliveries, the mix of theatre systems shipped, the timing of the recognition of
revenues and expenses on film production and distribution agreements, the
viability of new businesses and foreign currency fluctuations. These factors and
other risks and uncertainties are discussed in the Company's Annual Report on
Form 10-K for the year ended December 31, 1999 and in the subsequent reports
filed by the Company with the Securities and Exchange Commission.
SOURCE Imax Corporation
CONTACT: Victoria Dinnick of IMAX Corporation, Toronto, 905-403-6366; or
Analysts - Stephen Abraham of IMAX Corporation, New York, 212-821-0140
/Company News On-Call: prnewswire.com or
fax, 800-758-5804, ext. 103201
URL: imax.com
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