Ballantyne of Omaha First Quarter Revenues Rise 17%.

OMAHA, Neb.--(BUSINESS WIRE)--April 20, 1999--

- Backlog Rises 22% From Year-Ago Level to $23.7 Million -

Ballantyne of Omaha, Inc. (NYSE:BTN), a leading manufacturer of motion picture projection and entertainment lighting equipment, today reported first quarter results for the period ended March 31, 1999.

Net revenues in the first quarter of 1999 rose 17% to $20,197,020, compared to $17,271,887 in the first quarter of 1998. The increase was driven by sales of the Company's theater products. For the period ended March 31, 1999 earnings before interest, taxes, depreciation and amortization (EBITDA) rose 21% to approximately $3,868,000 from approximately $3,196,000 in the 1998 first quarter. Giving effect to net interest expense of $232,164 from borrowings primarily due to the Company's share repurchase program (compared to net interest income of $68,980 in the year-ago quarter) 1999 first quarter net income was $1,836,552, or $0.14 per diluted share, compared to net income of $1,901,418, or $0.13 per diluted share, in the 1998 first quarter. Per share results reflect a June 1998 3-for-2 stock split and a March 1999 5% stock dividend, and are based on a weighted average number of diluted shares outstanding of 13,328,863 and 14,948,489 for the first quarters of 1999 and 1998, respectively.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, stated, "As anticipated, first quarter sales reflect exceptional growth in our theater product division. Our domestic exhibition customers are gearing up for an exciting motion picture release schedule led by the much heralded Star Wars movie, and they're constructing new theaters at a brisk pace. Following on a record financial performance for the month of March, second quarter pacings have been strong. Reflecting this demand, Ballantyne's backlog as of March 31, 1999 rose 22% to $23,726,000 from the level reported a year-ago and 43% from the December 31, 1998 level.

"One year-ago we re-located a senior-level sales executive to the Philippines to support our Hong Kong-based Westrex office and Pacific Rim operations. The investment appears to be paying dividends as the Asian economic situation improves. Sales to foreign customers in the region rose 27% compared to the year-ago level, with the strongest demand originating in Korea and Japan."

Mr. Wilmers concluded, "We continue to execute our share repurchase program as market conditions warrant, and since March 31, 1999, we have purchased an additional 24,000 shares of Ballantyne Common Stock in open market purchases, bringing to 1.82 million the total number of shares purchased since last July. While quarterly EBITDA rose 21% over year-ago levels, pre-tax income reflected a swing of over $300,000 primarily related to interest expenses from our share repurchase program. We are committed to reducing our debt, and anticipate making significant strides toward that goal in 1999."

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.

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. -0-

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

                                              Three Months Ended
                                                    March 31,
                                             1999             1998

Net revenues                            $ 20,197,020    $ 17,271,887

Cost of revenues                          14,017,333      11,963,465

Gross profit                               6,179,687       5,308,422

Total operating expenses                   2,969,786       2,432,908

Income from operations                     3,209,901       2,875,514

Net interest income (expense)               (232,164)         68,980

Income before income taxes                 2,977,737       2,944,494

Income taxes                               1,141,185       1,043,076

Net income                              $  1,836,552    $  1,901,418

Net income per share(a)
   Basic                                $       0.14    $       0.13
   Diluted                              $       0.14    $       0.13

Weighted average shares outstanding(a)
   Basic                                  12,677,434      14,232,543
   Diluted                                13,328,863      14,948,489


(a)  The net income per share amounts and weighted average shares
     outstanding have been adjusted to reflect a June 12, 1998 3-for-2
     stock split and a March 1, 1999 5% stock dividend.