Many of the factors that have negatively impacted sales over the past year are lessening.

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A few years ago the big question was could IMAX get Hollywood content on their screens and theaters to sign up. But studios now see the value of putting movies on IMAX screens since consumers have much better home theaters.

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With the expectation that (fiscal year 2006) will be a year of 'spend' before the positive impacts are felt during (fiscal year 2007), we believe investors now have some time to wait.

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