IMAX

1.The law firms of Sutts, Strosberg LLP and Siskinds LLP are counsel in a class action against Imax Corporation ("Imax") and a number of its directors and officers. The claim is on behalf of all persons, other than certain persons associated with the defendants, who purchased or acquired Imax securities on or after February 17, 2006 and continued to hold some or all of the securities at the close of trading on the TSX and Nasdaq on August 9, 2006 (the "Class Members").

2. The class action concerns Imax's revenue-recognition practices in 2005. 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 plaintiffs allege 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 misrepresentation was disclosed.

3. On December 14, 2009, Justice Van Rensburg certified the action as a class proceeding and granted leave to proceed with a claim for misrepresentation in the secondary market under section 138.3 of the Securities Act. Justice van Rensburg's certification reasons may be reviewed here and her reasons for leave under the Securities Act may be reviewed here.

4. The defendants appealed the Securities Act order to the Court of Appeal for Ontario. The plaintiffs brought a motion to quash the defendants' appeal and were successful. The endorsement of the Court of Appeal for Ontario may be reviewed here.

5. The defendants brought a motion for leave to appeal the certification order and the Securities Act order and on February 14, 2011 Justice Corbett dismissed the defendants' motion.  Justice Corbett's reasons may be reviewed here.

6.The plaintiffs will appear before Justice Van Rensburg in May and request that she approve a notice, the notice program and fix a date for the Class Members to opt out.

7. If you acquired Imax securities on or after February 17, 2006 and continued to hold some or all of the securities at the close of trading on the TSX and Nasdaq on August 9, 2006, please enter the information requested on the communication page.

8. If you have any questions, please call Sutts, Strosberg LLP at 1.800.229.5323, extension 8296.

9. If you would like to know more about how a class action works, click here.