IMAX in $15m London Underground Deal

Digital Projection International (DPI) - a wholly-owned subsidiary of IMAX Corporation - has announced a strategic partnership which will expand IMAX's market-leading digital projection technology into the realm of digital electronic billboards. The agreement, with Sweden's DHJ Media AB, is to develop and install digital media network systems that will replace traditional poster advertising with high-revenue digital billboards. The companies announced today that the London Underground is the first to sign up for an installation of the system. To be marketed under DHJ's trademarked ‘Outdoor Evolution Systems’, the IMAX-DHJ networked digital billboard system will allow owners to increase revenues and direct advertsiements to any given location at any designated time of the day, thus allowing for better timeliness of messages, flexibility, and the ability to purchase the entire billboard network.

Under the terms of the agreement, IMAX will sell the digital projectors that will display the images, and DHJ will provide the network functions as well as the billing, scheduling and distribution of ads. IMAX and DHJ agreed to market the Outdoor Evolution System to five potential locations in Europe. As a result, the London Underground has placed an order with IMAX for 400 digital projectors with a value of close to $15 million, the largest order ever for IMAX's DPI subsidiary. The first 100 systems are expected to be installed by the end of 2001, with the balance expected to be delivered over the following 12 to 24 months. TDI Outdoor, a subsidiary of Viacom Inc, will handle the advertising sales for the London Underground system. IMAX and DHJ also announced that they have entered into a marketing co-venture to target the sale of Outdoor Evolution Systems to five potential customers in North America including transit systems, shopping malls and movie theatre chains.

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