The law firms of Siskinds LLP and Sutts, Strosberg LLP are counsel in a class action issued in Brampton, Ontario on September 20, 2006 seeking, among other things, leave to proceed under Ontario's new investor protection legislation against Imax Corporation ("Imax") and a number of its directors and officers.

This class action is brought on behalf of all persons and entities who purchased Imax shares from February 17, 2006 to August 9, 2006 (the "CLASS PERIOD").

The class action concerns Imax's revenue-recognition practices for the 2005 fiscal year. In early 2006, Imax announced it had successfully completed 14 theatre system installations in the fourth quarter of 2005. Imax also announced an earnings increase of 62% for the fiscal year ended on December 31, 2005. On August 9, 2006, Imax stated that it had recognized revenue in the fourth quarter of 2005 on 10 theatre-system installations in theatres which did not open in that quarter.

The statement of claim alleges that Imax and some of its directors and officers knowingly overstated Imax revenues for 2005 thereby artificially inflating the trading price of Imax securities. The value of Imax's securities declined by approximately 40% when the misrepresentations were disclosed.

The plaintiffs have filed a motion to have the case certified as a class action and to obtain leave of the Court to assert claims under the new Part XXIII.1 of the Ontario Securities Act. Currently, this motion is scheduled to be heard during the week of June 2, 2008.

If you purchased Imax shares during the CLASS PERIOD, please complete the online information form. Your information will be held in strict confidence. By completing the form, you are not retaining Siskinds or Sutts Strosberg, nor do you incur any obligations in connection with this lawsuit. For further information concerning this action, please contact Nicholas Baker at 1 (800) 461-6166 ext. 2380 or email nicholas.baker@siskinds.com. Updates concerning this action will be posted above.

Residents of Quebec who purchased IMAX shares between February 17 and August 9, 2006 should contact Simon Hébert at (418) 694-2009 or simon.hebert@siskinds.com.