LOS ANGELES, June 7 /PRNewswire/ -- DreamWorks SKG and Imax Corporation (Nasdaq: IMAX) (TSE: IMX) today announced a breakthrough in the history of animation with the news that DreamWorks will release an animated film in 3D to IMAX(R) theatres. In December 2001, Dreamworks' Shrek, the upcoming animated film featuring the voices of Mike Myers, Cameron Diaz, Eddie Murphy, John Lithgow and Linda Hunt, will be presented in 3D at IMAX theatres. The film will be initially released in conventional 2D in 35mm on May 18, 2001, and will feature an enhanced ending filled with 3D effects and created just for the IMAX 3D release.

"Animation is a constantly evolving artform," said DreamWorks SKG principal Jeffrey Katzenberg, "and releasing Shrek in 3D form for IMAX theatres will hopefully mark the next step in how audiences experience these films. To tell a story in animation is always exciting ... but to know that this fractured fairy tale will be shown eight stories high and in IMAX 3D is thrilling for us at DreamWorks Animation. Luckily in Mike Myers, Cameron Diaz, Eddie Murphy, John Lithgow and Linda Hunt, we have a cast that is already big ... but it just got a whole lot bigger."

"We're delighted that DreamWorks has decided to extend the Shrek franchise by selecting IMAX 3D as a release window," said Imax co-CEOs Bradley J. Wechsler and Richard L. Gelfond. "We believe that the combination of The IMAX 3D Experience and the creative talents of DreamWorks SKG will revolutionize the way people experience animation. This film will continue our evolution as a unique family entertainment option, and firmly establish the IMAX theatre network as a release window for family-oriented Hollywood films."

The IMAX 3D version of Shrek will be distributed by Imax Ltd. to the growing worldwide network of IMAX theatres, coincidental with DreamWorks' home video release of the film in December 2001. The home video and IMAX 3D launches will be cross-marketed to maximize the impact of both releases.

Shrek is a cynical, no-nonsense ogre whose swamp has been overrun by annoying fairy tale creatures. He sets out to save his home and along the way, is befriended by a wise-cracking donkey, sent to slay a fire-breathing dragon and save a beautiful princess with a deep, dark secret. In the end, Shrek learns to love and be loved.

DreamWorks SKG was formed in October 1994 by its three principals -- Steven Spielberg, Jeffrey Katzenberg and David Geffen -- to produce live-action motion pictures; animated feature films; network, syndicated and cable television programming; home video entertainment; records, books; toys; and consumer products.

Imax Corporation and its subsidiaries comprise one of the world's leading entertainment technology companies, with particular emphasis on film and digital imaging technologies including giant-screen images, 3D presentations, digital post-production and digital projection. There were more than 210 IMAX theatres operating in 26 countries around the world as of March 31, 2000. Imax's subsidiaries include Digital Projection International, whose primary business is the design and manufacture of high-end digital image delivery devices, and Sonics Associates a designer and manufacturer of high-end sound systems. Imax has forged strategic alliances and relationships with some of the most prominent corporations in the world including Famous Players Inc. (a subsidiary of Viacom Inc.), America Online Inc. and Loews Cineplex Corp. Imax Corporation is a publicly traded company listed on both the Toronto and Nasdaq stock exchanges. More information on the Company can be found at www.imax.com .

This press release contains forward-looking statements certain of which are based on Imax Corporation's management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could effect these statements include the timing of theatre system deliveries, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, the viability of new businesses and foreign currency fluctuations. These factors and other risks and uncertainties are discussed in Imax Corporation's Annual Report on Form 10-K for the year ended December 31, 1999 and in the subsequent reports filed by Imax Corporation with the Securities and Exchange Commission. SOURCE Imax Corporation

CONTACT: Victoria Dinnick, Toronto, 905-403-6366, or vdinnick@imax.com, or Analysts, Stephen Abraham, New York, 212-821-0140, or sabraham@imax.com, both of Imax Corporation; or Entertainment Media, Al Newman of Newman & Company, Los Angeles, 310-777-5252, or asn@newman-co.com; or Media, Gina Stikes of Edelman Financial, New York, 212-642-7702, or gina_stikes@edelman.com; or Vivian Mayer of DreamWorks SKG, 818-733-6674, or vmayer@dreamworks.com/