30.10.02
IMAX Signs Exclusive Deal with Regal Entertainment Group |
(Toronto, Canada, October 2002) - IMAX Corporation (Nasdaq: IMAX; TSE: IMX) has announced that it signed an agreement with Regal Entertainment Group (Regal) (NYSE: RGC) to install IMAX(r) theatre systems in four Edwards Theatres locations and one United Artists Theatre location. The agreement, which further provides IMAX with certain exclusivity rights as Regal's large format theatre system provider, also resolves all of IMAX's claims relating to the Edwards bankruptcy proceedings. The agreement is subject to Edwards bankruptcy court approval.
The installation of these five IMAX theatres increases the number of IMAX theatres operated by Regal to 11 -- more than any other third-party operator in the world. Regal's decision to virtually double the size of its network comes on the heels of the introduction of IMAX(r) DMR(tm), IMAX's proprietary new technology that enables the conversion of Hollywood live-action films into a genuine IMAX experience. The first two films to undergo the conversion are Apollo 13 The IMAX Experience, which opened to universally rave reviews on September 20th and Star Wars(r): Episode II Attack of the Clones -- The IMAX Experience, which opens exclusively in IMAX theatres on November 1st.
"Regal's decision to convert its screens to IMAX theatres is a major step forward in our commercial strategy and significantly enhances our ability to attract studios to show important commercial films in the IMAX 15/70 format at IMAX theatres," said IMAX co-CEOs Richard L. Gelfond and Bradley J. Wechsler.
"The economics for commercial filmmakers improves as the IMAX commercial network expands, leading to the availability of more films, which should accelerate the commercial growth of the IMAX theatre network. The Regal announcement hastens the growth of the Company, delivers tangible earnings to the Company in 2003 and, by all measures, is an important milestone in the pursuit of our goal of becoming a new release window for Hollywood films."
"We are excited by the upcoming film slate for IMAX theatres and by the potential of IMAX DMR to add even more Hollywood content," said Regal's Chief Executive Officer Michael Campbell. "We look forward to working with IMAX in the future."
The five Regal locations contained IMAX theatre systems prior to the bankruptcies of Edwards and United Artists in 2000 and 2001, respectively. Regal acquired Edwards and United Artists in 2002. The theatres are located at: Irvine, Ontario, and Valencia, California; Houston, Texas, and King of Prussia, Pennsylvania.
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