Ballantyne Retains Donaldson, Lufkin & Jenrette to Explore Strategic Alternatives Intended to Enhance Shareholder Value.

OMAHA, Neb.--(BUSINESS WIRE)--Oct. 11, 1999--

Ballantyne of Omaha, Inc. (NYSE: BTN), a leading manufacturer of motion picture projection and entertainment lighting equipment, announced today that its Board of Directors has engaged Donaldson, Lufkin & Jenrette Inc. (DLJ) to help the Company develop, review and structure a range of strategic alternatives intended to enhance shareholder value. The Company indicated there can be no assurance as to the outcome of the strategic review.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "The Company's board of directors has decided that in the current business environment, it would actively consider strategic alternatives to increase shareholder value in the near future. Accordingly, we will work with DLJ to explore a range of strategic alternatives that will better reflect the value of our outstanding assets, employees and industry position."

Ballantyne of Omaha is the world's largest supplier of commercial motion picture projection equipment utilized by prominent theater chains including Regal Cinemas, AMC and Loews Cineplex, 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 products; the development of new technology for alternate means of motion picture presentation; failure of the Company's computer systems, or that of any of its suppliers, and/or products manufactured and sold by the Company, resulting from the year 2000 problem; 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.