Ballantyne Secures Purchase Commitment From Regal Cinemas for 2,000 Motion Picture Projection Systems.

OMAHA, Neb. and KNOXVILLE, Tenn.--(BUSINESS WIRE)--January 6, 1999--Ballantyne of Omaha, Inc. (NYSE: BTN), a leading manufacturer of motion picture projection and entertainment lighting equipment, today announced it has signed a letter of intent with Regal Cinemas, Inc., the world's largest owner and operator of motion picture theaters, to supply a minimum of 2,000 complete projection systems to the exhibitor over the next two years. The agreement more than doubles Ballantyne's existing business with Regal Cinemas. Initial unit shipments are anticipated during the first quarter of 1999.

Prior to this agreement, Ballantyne supplied only certain projection system parts to Regal including projectors, platters and lenses. Under terms of the agreement, Regal will purchase Ballantyne's complete motion picture projection system including the console, projector, platter, lenses, automation/dimmer systems, audio sound racks and associated components.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "This agreement represents the single largest purchase commitment in Ballantyne's 68-year history and demonstrates our ability to leverage an already solid customer relationship into new growth. Providing complete projection systems is a critical element of our strategy to expand the Company's installed base of equipment and grow market share."

"As anticipated, consolidation in the exhibition industry is generating additional demand for our products. Recent investments in new manufacturing capacity and vertical integration are enabling us to meet that demand - and seek out new growth opportunities - while continuing to provide the superior products and service for which we are known."

Rob Del Moro, Senior Vice President of Purchasing for Regal Cinemas, added, "At Regal Cinemas, our goal is to provide our customers the highest quality movie-going experience possible. Ballantyne projection systems are renowned in the industry for their quality, reliability and durability, and we're delighted to expand our relationship with this world-class supplier. Given our rapid expansion plans, Ballantyne was a natural choice because of its ability to deliver large volume orders on a timely basis."

Headquartered in Knoxville, Tennessee, Regal Cinemas is the world's largest motion picture exhibition chain with over 3,600 screens in operation worldwide.

Ballantyne of Omaha is the leading U.S. 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.