Ballantyne of Omaha's First Quarter Revenue to Approximate $11.5 Million; Anticipates Loss of $0.04 - $0.06 Per Diluted Share.

Business Editors

OMAHA, Neb.--(BUSINESS WIRE)--April 6, 2000

Partners With Lumavision Display to Develop Digital Projector 

Ballantyne of Omaha, Inc. (NYSE: BTN), a leading manufacturer of motion picture projection and entertainment lighting equipment, announced today that revenue for the 2000 first quarter will approximate $11.5 million, reflecting slower new theater construction activity in North America. The Company also announced that it anticipates a loss of approximately $0.04 - $0.06 per diluted share after a one-time charge of approximately $500,000 related to a 17% personnel reduction across three of its facilities in Omaha, Nebraska, Fisher Illinois and North Hollywood, California. Actual first quarter 2000 results are expected to be released the week of April 24th.

Ballantyne also announced that during the quarter it launched an internal program to develop a proprietary digital projector for the electronic cinema market by partnering with California-based Lumavision Display, Inc., a Redwood City, California-based company focusing on advanced display and optical technologies, and has committed initial funding toward research and development.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "Recognizing that our customers in North America scaled back their construction plans for 2000, we initiated a review of expenses and have taken steps to reduce overhead to ensure that costs remain consistent with revenue expectations. Given the sluggish industry environment for our theater products in North America, our largest market, we anticipate that revenues for 2000 will approximate $55 - $65 million, and that our market share will remain consistent with 1999 levels.

"Following the conclusion of our strategic review, the Company remains focused on leveraging its dedicated employees, strong customer relationships, installed equipment base and manufacturing expertise to strengthen its business.

"To that end, we have partnered with one of the electronic display industry's most innovative companies to develop a new digital projector that will position Ballantyne to participate in the exhibition industry's eventual transition to digital technology."

Thomas Stahl, President and Chief Executive Officer of Lumavision, added, "Ballantyne was a logical choice for a digital projection partner, given its strong ties to the motion picture exhibition industry, high quality products, global distribution capabilities and world-class reputation for service. John Wilmers and his team are leaders in the theater equipment industry, and we look forward to developing a productive and mutually beneficial relationship."

Ballantyne of Omaha is the leading U.S. supplier of commercial motion picture projection equipment utilized by 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 others. Ballantyne 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.