January 3, 2008--IMAX Corporation announced today that on December 21, 2007, it received a summons and complaint from the trustee under the indenture (the "Indenture") governing the company's senior notes, seeking a declaratory judgment confirming IMAX's position that The Catalyst Fund Limited Partnership II ("Catalyst") has no basis for its legal claims against IMAX under the Indenture.

The trustee, U.S. Bank National Association (the "Trustee"), is seeking a judgment affirming its own, independent conclusions that, despite Catalyst's repeated claims to the contrary, absent a finding of bad faith: (1) no event of default existed under the Indenture as of November 6, 2007, (2) the maturity of the company's $160 million of 9 5/8% Senior Notes due December 1, 2010 (the "Senior Notes"), was not accelerated as of November 6, 2007, and (3) Catalyst has no basis for legal action under the Indenture.

On October 29, 2007, IMAX received a letter from Catalyst, advising the company that it had instructed the Depository Trust Company, through its nominee Cede & Co., to issue immediately a notice of acceleration to the company, pursuant to the Indenture, to accelerate the maturity of the principal amount of the Senior Notes and any accrued interest. The company had previously received seven purported notices of default from Catalyst, who unsuccessfully opposed the company's consent solicitation in April 2007, all alleging that IMAX breached the financial reporting covenant and related provisions under the Indenture and that such breaches constitute defaults under the terms of the Indenture. On September 7, 2007, Catalyst brought an action in the Ontario Superior Court of Justice, seeking, among other things, a ruling that IMAX is in default under the Indenture.

It is the company's position that no default or event of default has occurred or is continuing under the Indenture, and accordingly no bondholder has the right to deliver an acceleration notice and the purported acceleration notice delivered by Catalyst is of no force or effect. The Trustee's complaint seeks a declaration confirming this position.