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Announced today:

IMAX today announced an expansion of its revenue sharing agreement with Cinemas Guzzo for an additional IMAX® theatre system to be located at the Mega-Plex Marche Central 18 in Montreal , which is scheduled to open in July. The deal marks the Company's initial test of two IMAX screens within a single multiplex.

"We're excited to have the first multiplex in the world that offers customers two IMAX screens," said Vincenzo Guzzo, Executive Vice President, Cinemas Guzzo. "Since opening our first IMAX theatre in March, we've experienced overwhelming demand and now with the ability to play simultaneous IMAX presentations in both French and English, we will be able to bring that experience to even more of our customers. No other format can transport our guests into the action, intensity and emotion of a blockbuster film like IMAX can. This is providing a key competitive advantage to our theatres that we believe cannot be duplicated."

While I find the French/English need interesting, I continue to wait for more theaters to offer two or more IMAX screens because IMAX finally has a blockbuster movie every other week and so many times the opening weekend is sold out.

Once the market figures out that the potential number of IMAX screens as two or three times what they are projecting, the stock will really get moving. The fact is, for now, it is theater system sales that are the big money. If the screen count was to mushroom, initially system sales would buoy the stock. But, after that, the return on movies would drive the profitability.

With the laser system coming next year, IMAX is going to have a superior picture and its own patented technology to protect its investment. I think the market is missing the fact that IMAX really does have something vastly superior coming and it is going to drive a lot of system upgrades. Once people see the new product, it should drive new theater system sales.

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