Ballantyne of Omaha First Quarter Net Income Rises 21%; Declares 3-For-2 Stock Split.

OMAHA, Neb.--(BUSINESS WIRE)--April 22, 1998--

Backlog Rises 54% From Year-End Level Reflecting Continued

Worldwide Demand

Ballantyne of Omaha, Inc. (NYSE: BTN), a leading manufacturer of motion picture projection and entertainment lighting equipment, today reported record first quarter results for the period ended March 31, 1998. The Company also announced today that its Board of Directors has declared a 3-for-2 split of its Common Stock. The stock split will be in the form of a 50% Common Stock dividend payable June 12, 1998 to shareholders of record on May 29, 1998. Shareholders will receive 0.5 additional shares of Common Stock for each share held on the record date. Fractional shares will be paid in cash. As a result of the stock split, Ballantyne's outstanding shares of Common Stock will increase to approximately 13,820,000 shares from approximately 9,215,000 shares outstanding as of today's announcement. Per share results for the first quarters of 1998 and 1997, respectively, have not been adjusted to reflect the 3-for-2 split.

Net revenues in the first quarter of 1998 increased 17% to $17,271,887, compared to $14,724,814 in the first quarter of 1997. The growth was primarily driven by increased sales of the Company's theater products, as well as contributions from the Company's entertainment lighting division. Net income in the first quarter of 1998 rose 21% to $1,901,418, or $0.20 per diluted share, compared to net income of $1,568,202, or $0.17 per diluted share, in the first quarter of 1997. Per share results are based on a weighted average number of diluted shares outstanding of 9,491,104 and 9,311,987 for the first quarters of 1998 and 1997, respectively.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, stated, "First quarter results reflect our initiatives to enhance operating leverage and increase our participation in the continued expansion of the domestic and international cinema exhibition industry. Our customers are modernizing their theaters by constructing new and more profitable multiplex and megaplex facilities to replace older, less efficient, less competitive venues. They look to us for high quality products and services for their critical projection needs. Ballantyne's backlog, which rose 54% from year-end, reflects our ongoing leadership in the projection systems component of this global trend.

"To leverage our production capabilities and to meet rising demand for our theater products abroad we are adding a full-time sales representative in Europe beginning May 1st, and have relocated a senior-level sales executive to the Philippines to support our Hong Kong-based Westrex office and Pacific Rim operations. These sales representatives will cater to the growing number of U.S.-based exhibitors building theaters overseas and seek to establish new business relationships with local exhibitors.

"Earlier this year, we completed two strategic acquisitions to enhance the Company's growth opportunities, purchasing SkyTracker of Florida, an entertainment lighting distributor that rents and sells our high intensity promotional searchlights, and Design and Manufacturing, our film platter system supplier. SkyTracker extends our national lighting rental presence to the Southeastern United States, increasing the overall profitability of our specialty entertainment lighting operations, Ballantyne's fastest growing division. Design and Manufacturing enhances our efficiency through vertical integration, expands our manufacturing capacity and strengthens the overall profitability of our theater equipment business.

"Based on the Company's excellent growth prospects, the Board has authorized a 3-for-2 stock split with the intention of providing increased liquidity for our shareholders."

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. -0- 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, 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 Income
                              (Unaudited)


                                     Three Months Ended
                                          March 31,

                                      1998         1997

Net revenue                       $17,271,887   $14,724,814

Cost of revenues                   11,963,465    10,368,767

Gross profit                        5,308,422     4,356,047

Total operating expenses            2,432,908     1,940,766

Income from operations              2,875,514     2,415,281

Net interest income                    68,980        53,180

Income before taxes                 2,944,494     2,468,461

Income taxes                        1,043,076       900,259

Net income                         $1,901,418    $1,568,202

Net income per share(a)
   Basic                           $     0.21    $     0.18
   Diluted                         $     0.20    $     0.17

Weighted average shares
outstanding
   Basic                            9,036,535     8,569,785
   Diluted                          9,491,104     9,311,987

(a) Reflects the 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]