Ballantyne Reports Second Quarter Results.

OMAHA, Neb.--(BUSINESS WIRE)--July 10, 1998--

- Backlog Rises to $22.4 Million -

Ballantyne of Omaha, Inc. (NYSE: BTN), a leading supplier of motion picture projection and entertainment lighting equipment, today announced revenue and earnings for the second quarter and six-month periods ending June 30, 1998. The results are in line with those previewed by Ballantyne last month in a June 4, 1998 announcement.

Net revenues in the second quarter of fiscal 1998 were $15,412,796, compared to net revenues of $16,348,995 in the second quarter of 1997. As previously disclosed, slower than anticipated demand from customers in Asia and Mexico, slower expansion activity by customers undergoing consolidation and order delays from a major customer accounted for the lower 1998 revenue level. Net income for the second quarter of 1998 was $1,425,732, compared to net income of $1,855,250 in the same period last year. Giving effect to a June 12, 1998 3-for-2 stock split, 1998 second quarter earnings per share on a diluted basis were $0.10 per share, compared to $0.13 per share in the same period last year. Per share results are based on a weighted average number of diluted shares outstanding of 14,496,120 and 14,053,491 for the second quarters of 1998 and 1997, respectively.

For the six months ended June 30, 1998, net revenues rose 5% to $32,684,683, compared to $31,073,809 in the same period a year ago. In the first half of 1998, net income was $3,327,150, or $0.23 per diluted share, compared to net income of $3,423,452, or $0.24 per diluted share, in the first half of 1997. Per share results are based on a weighted average number of shares outstanding of 14,355,283 and 14,025,078 for the 1998 and 1997 periods, respectively, and reflect the 3-for-2 stock split.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "As reflected by our backlog of $22.4 million at June 30th, a 12% increase over year-ago levels, our core business and competitive position remain strong, and we are actively taking steps to resume the year-over-year growth rate of which we believe Ballantyne is capable. During the quarter, we focused on expanding our presence in Europe and Asia by adding key sales executives in Germany and the Philippines. We also secured a new special venue customer, MegaSystems, and have already shipped an initial order of three large screen format projection systems. Finally, we vertically integrated our projection system product line by acquiring our platter system supplier, Design & Manufacturing, and have already begun benefiting from new manufacturing efficiencies.

"We continue to feel optimistic about the second half of 1998 and our business going forward, as certain customers who were previously involved in merger activity during the last six months have resumed their expansion activity. Reflecting this optimism, the Board of Directors authorized the repurchase of up to 10% of Ballantyne's outstanding Common Stock on June 26th with the goal of maintaining and further enhancing shareholder value. A modest initial purchase of 17,000 shares have been made to-date."

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, IMAX and MegaSystems. 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.

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 theatrical projection equipment, 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. -0-

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

                           Three Months Ended       Six Months Ended
                                 June 30,                June 30,
                            1998        1997        1998        1997

Net revenues          $15,412,796 $16,348,995 $32,684,683 $31,073,809

Cost of revenues       10,644,092  11,416,489  22,607,557  21,785,256

Gross profit            4,768,704   4,932,506  10,077,126   9,288,553

Total operating
 expenses               2,548,183   2,140,526   4,981,091   4,081,292

Income from operations  2,220,521   2,791,980   5,096,035   5,207,261

Net interest income         4,935      51,593      73,915     104,773

Income before taxes     2,225,456   2,843,573   5,169,950   5,312,034

Income taxes              799,724     988,323   1,842,800   1,888,582

Net income            $ 1,425,732 $ 1,855,250 $ 3,327,150 $ 3,423,452

Net income per share(a)(b)
   Basic              $      0.10 $      0.14 $      0.24 $      0.27
   Diluted            $      0.10 $      0.13 $      0.23 $      0.24

Weighted average shares
 outstanding(a)(b)
   Basic               13,827,734  12,894,918  13,690,578  12,874,898
   Diluted             14,496,120  14,053,491  14,355,283  14,025,078

(a) The weighted average shares outstanding and net income per share

amounts have been adjusted to reflect a 3-for-2 stock split

effected June 12, 1998.

(b) Reflects Statement of Financial Accounting Standards No. 128

which was adopted in the fourth quarter of 1997. `Basic' net

income per share only includes shares outstanding in the

calculation. `Diluted' net income per share includes options and

warrants in the calculation. Prior periods' net income per share

amounts have been restated to reflect this presentation.

CONTACT: Ballantyne of Omaha Inc.

Brad French

Chief Financial Officer

402/453-4444

or

Stewart Lewack, Joseph Jaffoni

Jaffoni & Collins Incorporated

212/835-8500; E-Mail: [e-mail]