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IMAX Corp. (IMAX) Extends Line of Credit to Rollout Additional IMAX Theatres

IMAX Corporation (Nasdaq: IMAX) is one of the world’s leading entertainment technology companies, specializing in immersive motion picture technologies. The company has a global reach, operating 302 IMAX theatres in 40 countries. The company today announced a revolving line of credit which will enable the company to move forward with its expansion plans.

The company today announced a $10-million revolving letter of credit (LC) facility with Bank of Montreal, which will replace its current $5 million LC facility with the same bank. When combined with its current $40 million credit facility, this cash injection will allow the company to launch its joint venture digital projection systems.

The company’s first 14 digital theatres debuted in September, successfully running at full capacity and performing up to expectations. With the new line of credit, the company said it remains on track to have approximately 40 digital theatres up and running in time for the release of Madagascar 2: The IMAX Experience, November 7, 2008, as well as 45-50 digital theatres in operation by the end of the year.

As of September 30, 2008, the company estimates having cash and cash equivalents of roughly $37.5 million, up from the $24.6 million posted on its balance sheet for the second quarter ended June 30, 2008.

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