Iwerks Extreme Screen Large Format Theatre a Featured Attraction of the Wildlife Experience, Denver.

Business Editors/Entertainment Editors

BURBANK, Calif.--(BUSINESS WIRE)--Oct. 5, 2001

Iwerks(R) Entertainment Inc., (OTCBB:IWRK)--

-- New theater features Academy Award(R)-winning Iwerks Linear Loop(R)
projection system with the latest digital sound and show control technology

-- Opening August 2002 at new Wildlife Experience center

Iwerks(R) Entertainment Inc., (OTCBB:IWRK) a leading provider of special venue theaters, has signed an agreement with The Wildlife Experience, a wildlife appreciation center now in development near Denver, to supply a new branded Iwerks(R) Extreme Screen(TM) Large Format Theatre to the new, nonprofit educational facility, which will open in August 2002.

The 315-seat theater will feature a giant motion picture screen four stories high, the Academy Award(R)-winning Iwerks Linear Loop(R) Large Format projection technology capable of showing 90 minutes of Large Format film uninterrupted, a premium six-channel digital sound system and state-of-the-art show control. The use of digital signal processing technology has enabled Iwerks to reduce the number of equipment racks needed for its theater systems from five to just two, while providing the same dynamic performance and quality. The use of three amps for each speaker, tuned specially for low, mid-range and high frequencies, enhances the sound quality.

"Large format cinema is one of the best ways to educate people about the natural world, and this excellent new wildlife center is an ideal venue for this type of presentation," says Don Iwerks, Chairman and Co-Founder of Iwerks Entertainment. "The Wildlife Experience will have access to a wealth of material for its new Iwerks(R) Extreme Screen(TM) Theatre," Iwerks adds. "Since the first permanent large format theater was built in 1970, filmmakers have created an extensive library of evocative nature and science features for the giant screen. Many of these films remain fresh, relevant and enjoyable for years and even decades. Educators rely on them to supplement their curricula. Families trust them to provide instructive, quality entertainment."

"The Iwerks(R) Extreme Screen(TM) Theatre will greatly enhance the visitors' experience, and will give us a logical way to tie into our changing exhibits," says Dr. Richard Smartt, Executive Director of The Wildlife Experience. Formerly, Smartt was Director of the New Mexico Museum of Natural History and Science. "Since this is the third Iwerks theatre I've personally been involved with choosing and installing, it's clear I'm sold on Iwerks," says Smartt. "One of the outstanding reasons to choose Iwerks is that you can purchase the system outright, as opposed to leasing it. In a smaller market especially, your bottom line will look better when you own the equipment yourself."

The new Iwerks(R) Extreme Screen(TM) Theatre will form part of the 100,000 square foot Wildlife Experience, complementing the center's permanent and rotating exhibits of natural history, art and photography. Designed by Klipp Colussy Jenks DuBois Architects of Denver, the center will also support community and business gatherings. It will include a restaurant, a gift shop, an impressive room for hosting large events, and an outdoor entertaining space. The primary sponsor of the facility is RE/MAX International, Inc. Visit www.TheWildlifeExperience.org.

About Iwerks Entertainment

Iwerks Entertainment Inc., founded in 1986, is the No. 1 provider of 8/70 Large Format Theatre systems worldwide and the industry leader in ride simulation. Iwerks' technologies include Giant Screen (Iwerks(R) Extreme Screen(TM)), ride simulation (Iwerks(R) TurboRide(R)), turnkey 3D/4D theatres (Iwerks(R) 3D/4D FX Theatre(TM)) and other specialty attractions. Iwerks has nearly 200 installations in 38 countries worldwide at entertainment centers, amusement parks, movie theatres, museums, science centers, shopping centers, casinos, resorts, nightclubs, restaurants, and more. Iwerks has received two Academy Awards for Scientific and Technical Achievement: in 1998, Don Iwerks received an Oscar(R), the coveted Gordon E. Sawyer Award; in 1999, L. Ron Schmidt received an Academy Award(R) Plaque in recognition of the Iwerks patented Linear Loop(R) Projection system. Visit www.iwerks.com.

The Iwerks(R) Extreme Screen(TM) brand was launched in May 1999. Iwerks provides theater operators with a comprehensive brand marketing support program that enables them to get the best possible exposure. The Extreme Screen(TM) brand name and logo are highly evocative, conveying visually and verbally the grandeur and sensory impact of the giant screen experience. Iwerks allows operators to apply the brand in a variety of ways, enabling facilities to incorporate it into their own brands.

Other Iwerks(R) Extreme Screen(TM) theaters are at CEC Theaters in Fargo, N.D.; Warner Village Cinemas in Cheshire Oaks, UK; Liseberg Park in Gothenburg, Sweden; COSI in Columbus, Ohio; Science City Union Station in Kansas City, Mo.; and a destination cinema in Katoomba, Australia. Three more Iwerks(R) Extreme Screen(TM) theaters are set to open next year in Montreal, Canada; Balloch, Scotland; and San Antonio, Texas.

This release contains statements that constitute "forward-looking statements" within the meaning of Section 21E of the Exchange Act and Section 27A of the Securities Act. The stockholders of Iwerks are cautioned not to put undue reliance on such forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected in this release resulting from the following reasons (among others): the impact of the economic conditions in the Asia Pacific region and South America, the performance by the company under existing purchase contracts and the ability to obtain new contracts, the success of the company's owned and operating strategy, the success of the company's film software, the effects of competition, general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission.

Editors' note: Photos available