Ballantyne of Omaha Receives $800,000 Contract to Provide Searchlights for Use At NASA's Kennedy Space Center.

Business Editors

OMAHA, Neb. and CAPE CANAVERAL, Fla.--(BUSINESS WIRE)--July 21, 2000

Ballantyne of Omaha, Inc. (NYSE: BTN), a leading manufacturer of motion picture projection and specialty lighting equipment, today was awarded a contract valued at approximately $800,000 to supply 16 Strong(TM) 10,000 watt Xenon Searchlights to Space Gateway Support (SGS), a contractor that manages base operations and infrastructure at National Aeronautics and Space Administration's (NASA; http://www.ksc.nasa.gov/) Kennedy Space Center facility in Cape Canaveral, Florida. The searchlights will be deployed at various locations throughout the Center, including its Launch Complex 39 facilities, which support the Space Shuttle and International Space Station missions.

"The NASA contract is a great endorsement of our lighting technology, the durability of our Strong(TM) products and our reputation for quality workmanship," commented John P. Wilmers, President and Chief Executive Officer of Ballantyne. "Our Company has been a leader in specialty lighting for entertainment production, architectural design and promotional purposes, and now we're pleased to add space exploration to this list. We look forward to working with NASA and its partners in the future to continue providing illumination systems for their lighting needs."

Ballantyne's Strong(TM) searchlights will enable NASA workers to conduct round-the-clock launch operations more efficiently and safely. The Company's lighting systems are increasingly relied on for mission-critical needs in the aeronautics industry, having previously been used in several commercial rocket launches for Lockheed Martin (http://www.lockheedmartin.com/) at Vandenberg Air Force Base in California and by Sea-Launch (http://www.sea-launch.com/), a private consortium that provides commercial launch services from its ocean-going platform. Ballantyne's SkyTracker of Florida unit negotiated the sale of the searchlights to SGS.

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. More information is available at http://www.btn-inc.com/.

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.