Iwerks Extreme Screen Theatre Brand Launches With Warner Village UK Cinemas Opening; Cheshire Oaks Theatre Marks International Debut.

Business/Entertainment Editors

BURBANK, Calif.--(BUSINESS WIRE)--Jan. 21, 2000

Iwerks(R) Extreme Screen(TM) Theatres, the Large Format theatre brand launched by Iwerks Entertainment Inc.(Nasdaq:IWRKD) in May of 1999, will celebrate their international debut today when Warner Village Cinemas at Cheshire Oaks in the United Kingdom opens to the public with grand opening festivities.

The opening follows the successful U.S. launch of the brand in the fourth quarter of 1999 in Kansas City and Columbus, Ohio.

Warner Village is the first Extreme Screen(TM) project outside the United States to open its doors. Additional commercial installations of Iwerks Extreme Screen Theatres to open later this year include National Amusements Showcentre Norte in Buenos Aires, Argentina; Dunbartonshire Enterprises at Lomond Shores in Loch Lomond, Scotland; Cinema Entertainment Corporation's Century Theatre multiplex in Fargo, N.D.; and at Showmax's Montreal Forum project in Canada.

Iwerks' partnership with Media Technology Source (MTS), the world's largest independent cinema equipment dealer, has been an important factor in the development of the Warner Village theatre and many other Extreme Screen locations. Iwerks, together with MTS, provided Warner Village with complete projection and sound technology. Additionally, Iwerks is providing its Extreme Screen brand marketing and film distribution programs.

&uot;As the No. 2 provider of Large Format Theatre Systems around the world, Iwerks is proud and excited to have partners like Warner Village as a testament to the growing strength of the Iwerks Extreme Screen Theatre brand,&uot; said Charles Goldwater, Iwerks president and chief executive officer. &uot;As more and more commercial and institutional locations commit to Iwerks technology and programs, the recognition and appeal of the Iwerks brand grows stronger.&uot;

Iwerks theatres will have access to the extensive Large Format film library available from Iwerks and from the world of independent filmmakers and distributors, providing a significant selection of educational and entertaining films in both 2D and 3D.

Iwerks Entertainment, founded in 1986, is one of the world's leading creators of film-based entertainment attractions. Iwerks' technologies include Giant Screen, ride simulation and turn-key 3D/4D FX theatres and other specialty attractions. Iwerks currently has over 250 installations, including Iwerks Turboride(TM) Simulation Theatres and Iwerks(R) Extreme Screen(TM) Theatres.

Iwerks attractions can be found in 38 countries worldwide at location-based entertainment centers, amusement parks, movie theatres, museums, science centers, family entertainment centers, shopping centers, casinos, resorts, nightclubs, restaurants and more. Visit Iwerks Entertainment on the World Wide Web at www.iwerks.com.

This release contains statements that constitute &uot;forward-looking statements&uot; 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.

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