Ballantyne Reports Fourth Quarter and Year-end Results.

Business Editors

OMAHA, Neb.--(BUSINESS WIRE)--Jan. 27, 2000

Ballantyne of Omaha, Inc. (NYSE: BTN), a leading manufacturer of motion picture projection and entertainment lighting equipment, today reported financial results for the fourth quarter and fiscal year ended December 31, 1999.

Net revenue in the fourth quarter of fiscal 1999 rose approximately 7% to $23,018,814 from $21,520,662 in the fourth quarter of 1998. Net income for the fourth quarter of 1999 was $2,454,276, or $0.19 per diluted share, compared to $2,598,543, or $0.19 per diluted share, in the same period last year. Per share results are based on a weighted average number of shares outstanding of 12,913,276 and 13,742,047 for the fourth quarters of 1999 and 1998, respectively, and reflect a 5% stock dividend paid March 1, 1999.

Net revenue in 1999 rose approximately 15% to $86,142,568 from $75,057,367 in 1998. Including the impact of a one-time charge of approximately $400,000 ($0.02 per diluted share on an after-tax basis), net income in 1999 was $7,758,949, or $0.59 per diluted share, compared to $8,343,734, or $0.57 per diluted share, in 1998. Per share results are based on a weighted average number of shares outstanding of 13,149,869 and 14,749,350 for the 1999 and 1998 periods, respectively, and reflect the 5% stock dividend.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, &uot;Ballantyne's 7% and 15% top-line growth for the fourth quarter and fiscal year, respectively, a 26% increase in replacement parts sales and earnings per share on par with last year's record levels are tremendous achievements, given the challenging industry environment under which we operated in 1999.

&uot;During the year we took action on several fronts to better position the Company for growth. We co-developed a high brightness, high resolution digital projector with a strategic partner to launch our electronic cinema strategy, a strategy we will continue to aggressively pursue in the years ahead. We also introduced a next-generation projector lens with Isco-Optic GmbH that has received favorable reviews from the industry and our customers.

&uot;As previously announced, we have engaged Donaldson, Lufkin &Jenrette to conduct a strategic review of our business, and we look forward to completing that analysis as expeditiously as possible.&uot;

Ballantyne of Omaha is the leading U.S. supplier of commercial motion picture projection equipment utilized by the major theater chains including AMC, Loews Cineplex and Regal Cinemas, and specialty projection equipment used by location-based entertainment providers such as The Walt Disney Co., Universal Studios and IMAX. Ballantyne of Omaha also manufactures, rents and leases specialty entertainment lighting products used at top arenas, television and motion picture production studios, theme parks and architectural sites around the world.

Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including but not limited to, quarterly fluctuations in results; customer demand for the Company's products; the development of new technology for alternate means of motion picture presentation; domestic and international economic conditions; the management of growth; and, other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.

                       Ballantyne of Omaha, Inc.
                 Consolidated Statements of Operations
                              (Unaudited)

                       Three Months Ended       Fiscal Year Ended
                          December 31,             December 31,
                       1999          1998       1999          1998
                       ----          ----       ----          ----
Net revenues      $23,018,814  $21,520,662   $86,142,568  $75,057,367

Cost of revenues   16,517,180   14,613,867    60,945,902   51,503,053
                  -----------  -----------   -----------  -----------

Gross profit        6,501,634    6,906,795    25,196,666   23,554,314

Total operating
 expenses (a)       2,972,275    2,790,300    12,514,331   10,584,989
                  -----------  -----------   -----------  -----------
Income from
 operations         3,529,359    4,116,495    12,682,335   12,969,325

Net interest
 expense              225,602      109,033       868,216       36,265
                  -----------  -----------   -----------  -----------
Income before
 taxes              3,303,757    4,007,462    11,814,119   12,933,060

Income taxes          849,481    1,408,919     4,055,170    4,589,326
                  -----------  -----------   -----------  -----------

Net income         $2,454,276   $2,598,543    $7,758,949   $8,343,734
                  ===========  ===========   ===========  ===========

Net income per
 share(b)
   Basic           $     0.20   $     0.20    $     0.62   $     0.59
                  ===========  ===========   ===========  ===========
   Diluted         $     0.19   $     0.19    $     0.59   $     0.57
                  ===========  ===========   ===========  ===========

Weighted average
 shares
 outstanding(b)
   Basic           12,474,001   13,171,593    12,590,234   14,098,491
                  ===========  ===========   ===========  ===========
   Diluted         12,913,276   13,742,047    13,149,869   14,749,350
                  ===========  ===========   ===========  ===========

(a) Operating expenses for the fiscal year ended December 31, 1999
include approximately $400,000 of expenses for investment banking and
legal payments related to an unsuccessful acquisition attempt during
the year.

(b) The weighted average shares outstanding and net income per share
amounts have been adjusted to reflect a 5% stock dividend paid March
1, 1999.