DIGITAL PROJECTION ANNOUNCE BILLBOARD PARTNERSHIP

DIGITAL Projection International, a wholly owned subsidiary of IMAX Corporation, have announced a strategic partnership which will expand IMAX’s market-leading digital projection technology into the realm of digital electronic billboards.
Specifically, IMAX signed an agreement with Sweden’s DHJ Media AB to develop and install digital media network systems that will replace traditional poster advertising with high revenue digital billboards. The companies announced that the London Underground is the first location to enter into a definitive agreement for the installation of such a digital billboard system.
To be marketed under DHJ’s trademarked ‘Outdoor Evolution Systems’, the IMAX-DHJ networked digital billboard system will allow billboard owners the ability to dramatically increase revenues per billboard and will allow advertisers to target their audience on an hourly basis.
Digital billboards are designed to maximize the impact of advertising revenue by allowing ads to be directed 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.
Both Digital Projection and IMAX’s expertise in image projection, reliability and commitment to excellence should ensure only the highest-quality presentation of the advertiser’s image and message.
Under the terms of IMAX’s agreement with DHJ, 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, 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. (CD)