January 22, 2008--IMAX Corporation and SM Prime Holdings, the largest mall operator in the Philippines, have announced an agreement to install two IMAX digital projection systems at shopping malls in the cities of Manila and Cebu. The deal follows the success of SM's first IMAX theater, which has been the highest-grossing screen in the country since it opened in 2006. Under the terms of the parties' agreement, the two IMAX digital theater systems are expected to be installed during the third and fourth quarters of 2009.

"International growth remains an important part of our commercial strategy, and we couldn't be happier with SM Prime Holding's decision to expand its IMAX network in the Philippines following the success of its first theater," said IMAX Co-Chairmen and Co-CEOs Richard L. Gelfond and Bradley J. Wechsler. "SM Prime Holdings is the largest mall operator and commercial developer in the country, and we believe our partnership with them provides a great opportunity to reach the widest possible audience in this important market."

Located in Manila, the SM IMAX Theatre is an anchor attraction at the SM Mall of Asia, and attendance has already surpassed 175,000 individual ticket sales. Hollywood movies that have been digitally re-mastered into IMAX's format have consistently performed very well, with moviegoers paying as much as a 100 percent premium for select shows.

SM's new locations will utilize the new digital projection system being developed by IMAX. The system is configured for an IMAX MPX-style auditorium, which is designed specifically to enable multiplex operators to more cost effectively enter into the IMAX theater business. The theaters will be capable of playing 2D and 3D films.