Ballantyne of Omaha Reports Fourth Quarter and Year-end Results.

    Business Editors

      OMAHA, Neb.--(BUSINESS WIRE)--Feb. 1, 2001--Ballantyne of Omaha,
Inc. (OTC BB:BTNE), a leading manufacturer of motion picture
projection and specialty lighting equipment, today reported results
for the three and twelve-month periods ended December 31, 2000.
      Net revenue in the fourth quarter of 2000 was $10.2 million,
compared to $23.0 million in the year-ago fourth quarter. The Company
reported a net loss of $1.4 million, or $0.11 per diluted share,
compared to net income of $2.5 million, or $0.19 per diluted share, in
the fourth quarter of 1999. Per share results are based on a weighted
average number of diluted shares outstanding of 12,501,728 and
12,913,276 for the fourth quarters of 2000 and 1999, respectively. The
net loss reflects pre-tax charges of approximately $1.8 million ($1.1
million, or $0.09 per diluted share, on an after-tax basis) relating
to employee separation expenses, warranty expenses and reserves for
uncollectible receivables.
      Net revenue for 2000 was $47.7 million, compared to $86.1 million
in 1999. The Company reported a net loss in 2000 of $3.9 million, or
$0.31 per diluted share, compared to net income of $7.8 million, or
$0.59 per diluted share, during 1999. Per share results are based on a
weighted average number of diluted shares outstanding of 12,475,907
and 13,149,869 for 2000 and 1999, respectively. The net loss reflects
pre-tax charges of approximately $4.9 million ($3.1 million, or $0.25
per diluted share, on an after-tax basis) for expenses relating to
employee separation expenses, warranty expenses, reserves for
uncollectible receivables and bad debt, and inventory-related
expenses.
      "Problems in the motion picture exhibition industry continue to
impact our financial performance," commented John P. Wilmers,
President and Chief Executive Officer of Ballantyne. "In light of
this, we continue to reduce expense and inventory levels and collect
our past-due receivables with the goal of bringing them in line with
forward revenue expectations. Our priorities in 2001 are to diversify
the revenue base, develop new growth opportunities and return to
profitability."
      The Company also announced today that it has amended its $9.5
million credit facility with Wells Fargo Bank Nebraska, N.A. to
provide for continued borrowing under the facility up to the lesser of
$9.5 million or such amounts as determined by an asset-based lending
formula. The Company has approximately $7.2 million outstanding under
the revolving credit facility, and the maximum amount available under
the asset-based lending formula was approximately $8.3 million as of
January 29, 2001. The amendment is due to expire March 15, 2001. The
Company is continuing to explore options to secure a long-term lending
relationship, including continued negotiations with Wells Fargo Bank
Nebraska, as well as separate discussions with other lending
institutions. However, there can be no assurance the Company or Wells
Fargo Bank Nebraska will agree to such terms, or that the Company will
enter into a new credit facility with an outside lender.
      Ballantyne of Omaha is the leading U.S. supplier of commercial
motion picture projection equipment utilized by major theater chains
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.
      Ballantyne will host a conference call and simultaneous Web cast
today at 1:00 p.m. EST. Both the call and webcast are open to the
general public. The conference call numbers are 212/346-6392 or
415/537-1892; please call five minutes in advance to ensure that you
are connected prior to the presentation. Interested parties may also
access the live call on the Internet at www.themeetingson.com; please
allow 15 minutes to register and download and install any necessary
software.
      Following its completion, a replay of the call can be accessed for
14 days on the Internet via www.themeetingson.com, or for 6 hours via
telephone at 800/633-8284 or 858/812-6440 (reservation #17856733),
starting one hour after the call ends (approximately 2:00 p.m. EST).
      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.
-0-
*T


                       Ballantyne of Omaha, Inc.
      Condensed Consolidated Statements of Operations (Unaudited)

                        Three Months Ended     Twelve Months Ended
                          December 31,              December 31,
                        2000        1999         2000         1999

Net revenue         $10,161,348  $23,018,814  $47,671,796  $86,142,568
Cost of revenue #     8,843,447   16,517,180   39,995,725   60,945,902
Gross profit          1,317,901    6,501,634    7,676,071   25,196,666
Total operating
 expenses (a)         3,465,833    2,972,275   12,859,582   12,514,331
Income (loss) from
 operations          (2,147,932)   3,529,359   (5,183,511)  12,682,335
Net interest expense   (208,484)    (225,602)    (989,224)   (868,216)
Income (loss)
 before taxes        (2,356,416)   3,303,757   (6,172,735)  11,814,119
Income tax benefit
 (expense)              976,343     (849,481)   2,246,823  (4,055,170)
Net income (loss)   $(1,380,073)  $2,454,276  $(3,925,912)  $7,758,949

Net income (loss)
 per share (b)
Basic               $     (0.11)  $     0.20  $     (0.31)  $     0.62
Diluted             $     (0.11)  $     0.19  $     (0.31)  $     0.59

Weighted average
 shares outstanding (b)
Basic                12,501,728   12,474,001   12,475,907   12,590,234
Diluted              12,501,728   12,913,276   12,475,907   13,149,869

      # Cost of revenues for the three months ended December 31, 2000
include charges totaling approximately $0.9 million relating to
warranty expenses. Cost of revenues for the twelve months ended
December 31, 2000 include charges of approximately $2.6 million
related to warranty and inventory expenses.

     (a) Operating expenses for the three and twelve month periods ended
December 31, 2000 include charges of approximately $0.9 million and
$2.3 million, respectively, relating to employee separation expenses
and reserves for bad debt.

     (b) Given the losses in 2000, the calculation of diluted net loss
per share excludes common stock equivalents, as they are anti-dilutive
and would result in a reduction of diluted loss per share.

                     Selected Balance Sheet Items
                              (Unaudited)

                          December 31, 2000          December 31, 1999


Cash and cash equivalents   $ 2,220,983              $    857,089
Accounts receivable, net      8,447,856                15,510,265
Inventories                  22,720,499                26,210,431
Notes payable to bank         8,870,000                10,369,000
Accounts payable              2,289,111                 6,063,078
Total stockholders' equity  $36,005,770              $ 39,862,620

    --30--MEM/ny*

    CONTACT: Ballantyne of Omaha Inc.
             Brad French, 402/453-4444
              or
             Jaffoni & Collins Incorporated, New York
             Stewart Lewack, Joseph Jaffoni
             212/835-8500; [e-mail]

    KEYWORD: NEBRASKA
    INDUSTRY KEYWORD: ENTERTAINMENT MANUFACTURING MOTION PICTURES
CONFERENCE CALLS EARNINGS