Iwerks Extreme Screen Theatre Brand Celebrates U.S. Premiere With Openings in Columbus and Kansas City.

BURBANK, Calif.--(BUSINESS WIRE)--Nov. 5, 1999--

COSI Columbus and Science City at Union Station the First of Several

Locations to Open with State-of-the-Art Technology and Marketing

COSI Columbus - the Fascination Destination(TM) and Science City at Union Station in Kansas City, will soon become the first of many institutional and commercial venues to open Iwerks(R) Extreme Screen(TM) Theatres. Iwerks launched the Giant Screen theatre brand in May of 1999, combining a unique logo and marketing program with state-of-the-art technology to create the ultimate entertainment experience in a destination venue for exhibitors. COSI and Science City are the first venues to open in the United States.

COSI will introduce residents and visitors to central Ohio to a new world of entertainment Nov. 6, followed soon thereafter by the opening of the Iwerks Extreme Screen Theatre at Science City at Union Station in Kansas City. Commercial installations of Iwerks Extreme Screen Theatres are underway throughout the world, including Warner Village Cinemas at Cheshire Oaks in the UK; National Amusements Showcentre Norte in Buenos Aires, Argentina; Dunbartonshire Enterprises at Lomond Shores in Loch Lomond, Scotland; and at the Cinema Entertainment Corporation's Century Theatre multiplex in Fargo, North Dakota.

"The Iwerks Extreme Screen Theatre brand and concept have been well received throughout the world," said Charles Goldwater, Iwerks President and CEO. "We are thrilled and proud to mark our U.S. debut at COSI and Science City, facilities which embody the presentation of superior educational products in a fun and entertaining environment through the use of state-of-the-art technology and quality content. We are very much looking forward to our openings around the world, and particularly to the festivities in Columbus and later in the month in Kansas City."

Both installations feature the latest in Iwerks projection and sound technology, including the clearest and brightest Giant Screen images and immersive sound. The vast film library, with a significant selection of educational and entertaining Large Format films from Iwerks and the world of independent filmmaking and distributing, will be made available to each location as they present audiences with a superior entertainment experience.

As part of the Iwerks Extreme Screen brand program, Iwerks is working with all of their institutional and commercial partners on film programming and distribution, marketing, design and theatre operations programs. Each turnkey installation is designed to give Iwerks clients a competitive edge in attracting audiences in their specific markets as well as to broaden interest in Large Format film and the Giant Screen experience.

COSI Columbus, the Fascination Destination, founded in 1964, is one of the nation's leading science centers, known for excellence in interactive science learning. COSI has attracted more than 14 million in its 35 year history. The new COSI Columbus is a $125 million public-private partnership design by renowned architect Arata Isozaki. Visit COSI on the worldwide Web at www.cosi.org.

Combining the key characteristics of museums, science centers, theme parks, retail and theater, Science City at Union Station offers goal-directed "adventures" based on exploration of more than 50 environments within a city setting. The $234 million facility is located at Kansas City's historic Union Station, one of the legendary train stations in the United States and the second largest in North America.

Iwerks Entertainment Inc., founded in 1986, is one of the world's leading full-service providers of high-tech entertainment systems, support services and film-based software in Giant Screen, ride simulation and specialty venue attractions. More than 280 Iwerks attractions, including Iwerks(R) Extreme Screen(TM) theatres and Iwerks Turbo Ride(R) simulation theatres, can be found in 38 countries worldwide at location-based entertainment centers, amusement parks, movie theaters, family entertainment centers, shopping centers, casinos, resorts, nightclubs, restaurants, museums, fairs, festivals and more. Visit Iwerks Entertainment on the World Wide Web at www.iwerks.com.

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 ongoing economic conditions and situation in the Asia Pacific region and South America, the level of available sales in the rest of the world, the timing of sales and deliveries under existing contracts, costs of sales and the ability of the company to maintain pricing levels necessary to maintain gross profit margins, the level of selling, general and administrative costs, 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 and the effects of competition. In addition, the company's shareholders are urged to carefully review the risk factors discussed in the documents the company files from time to time with the Securities and Exchange Commission.