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[QUOTE]Originally posted by metal1: [QB] Imax Signs Record Intl Theater Deal In Encore To AMC Pact 3:45 PM EDT March 10, 2008 By Andy Georgiades Of DOW JONES NEWSWIRES TORONTO (Dow Jones)--Imax Corp.'s (IMAX) 35-theater deal with RACIMEC International Group of Brazil, its biggest international theater-system pact to date, may have been a lot smaller if not for the 100-system deal with AMC Entertainment. "We were discussing a much-smaller deal with them, but when they saw the AMC deal and they saw how quickly these zones could go away with the stroke of a pen, they came to us and said 'Let's do a much larger deal,' " said Imax co-Chief Executive Richard Gelfond. Imax, known for its large-format film screens, appears to have the wind at its back. Its new digital-projection system, which isn't scheduled to be rolled out until later this year, has already yielded two mega deals: a 100-theater deal with AMC in the U.S. in December, and now a 35-theater deal with RACIMEC for the South and Central America region. Gelfond wouldn't comment on the pact's value, but a person familiar with the deal said it could be worth more than $40 million, plus $3.5 million a year in recurring revenue once all the theaters are open. The RACIMEC pact, which calls for the theaters to be installed by the end of 2014, will give Imax a big boost in the area, where it has three Imax theaters open and another seven in backlog. In 2005, Imax signed a deal with the company for three theaters, two in Chile and one in Venezuela, all of which are expected to open in mid-2009. Gelfond said South America wasn't a region where Imax intended to sign joint-venture theater arrangements, in which Imax gives the system in return for a slice of the box-office revenue, so finding a partner willing to "put up the capital and build out that area quickly" is beneficial to the company. As a developer, RACIMEC will do deals with exhibitors and mall operators and develop that market, Gelfond explained. Separately, Gelfond said the company is on track with its plans for digital, which calls for the first three systems to be installed by the end of June, three more a month later, and a broader rollout beginning late in the third quarter. He confirmed a trade report that said Imax is in negotiations with Texas Instruments Inc. (TXN) to use its DLP (digital light processing) chips in Imax's digital projector. "I confirm that we're in detailed negotiations and I would expect an announcement shortly," he said. On Nasdaq Monday, Imax is up 16 cents to $6.50 on 88,000 shares. It traded as high as $6.91 earlier in the session. Company Web Site: http://www.imax.com -Andy Georgiades, Dow Jones Newswires; 416-306-2031; andy.georgiades*dowjones.com [/QB][/QUOTE]
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