Ballantyne of Omaha Second Quarter Earnings Per Share Rise 56% On 38% Revenue Increase.

OMAHA, Neb.--(BUSINESS WIRE)--July 28, 1999--

Ballantyne of Omaha, Inc. (NYSE: BTN), a leading manufacturer of motion picture projection and entertainment lighting equipment, today reported results for the second quarter and six-month period ended June 30, 1999.

Net revenues in the second quarter of 1999 rose 38% to $21,303,110 compared to $15,412,796 in the second quarter of 1998, driven by higher demand for the Company's theater products. Income from operations for the quarter ended June 30, 1999 rose 41% to $3,127,782 from $2,220,521 in the comparable year-ago period. Net income for the 1999 second quarter rose 28% to $1,823,192, or $0.14 per diluted share, compared to net income of $1,425,732, or $0.09 per diluted share, in the 1998 second quarter. Per share results reflect a March 1999 5% stock dividend, and are based on a weighted average number of diluted shares outstanding of 13,218,712 and 15,220,926 for the second quarters of 1999 and 1998, respectively.

Commenting on the results John P. Wilmers, President and Chief Executive Officer of Ballantyne stated, "During the second quarter, we continued to experience robust demand for our theater products, driving a strong financial performance. Our customers are focused on upgrading their theater circuits, and as the world's largest supplier of projection equipment, we're well positioned to continue benefiting from that trend."

Net revenues for the first six months of 1999 rose 27% to $41,500,130 compared to $32,684,683 in the first six months of 1998, while income from operations for the period rose 24% to $6,337,683 from $5,096,035 in the comparable year-ago period. Net income for the first half of 1999 rose 10% to $3,659,744, or $0.28 per diluted share, compared to net income of $3,327,150, or $0.22 per diluted share, in the first half of 1998. Per share results reflect the 5% stock dividend and are based on a weighted average number of diluted shares outstanding of 13,268,561 and 15,073,047 for the first halves of 1999 and 1998, respectively.

Ballantyne of Omaha is the world's largest 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 Operations
                              (Unaudited)

                     Three Months Ended             Six Months Ended
                           June 30,                       June 30,
                           --------                       --------
                        1999         1998          1999      1998
                        ----         ----          ----      ----

Net revenues        $21,303,110  $15,412,796  $41,500,130 $32,684,683

Cost of revenues     15,103,080   10,644,092   29,120,413  22,607,557
                     ----------   ----------   ----------  ----------

Gross profit          6,200,030    4,768,704   12,379,717  10,077,126

Total operating
 expenses             3,072,248    2,548,183    6,042,034   4,981,091
                      ---------    ---------    ---------   ---------

  Income from
   operations         3,127,782    2,220,521    6,337,683   5,096,035

Net interest income
 (expense)             (187,303)       4,935     (419,467)     73,915
                       ---------       -----     ---------     ------

Income before taxes   2,940,479    2,225,456    5,918,216   5,169,950

Income taxes          1,117,287      799,724    2,258,472   1,842,800
                    -----------    ---------  -----------  -----------

Net income           $1,823,192   $1,425,732   $3,659,744  $3,327,150
                     ==========   ==========   ==========  ==========

Net income per
 share(a)
   Basic            $      0.14  $      0.10   $     0.29   $    0.23
                    ===========  ===========   ==========   =========
   Diluted          $      0.14  $      0.09   $     0.28   $    0.22
                    ===========  ===========   ==========   =========

Weighted average
 shares
 outstanding(a)
   Basic             12,644,264   14,519,121   12,647,681  14,375,107
                     ==========   ==========   ==========  ==========
   Diluted           13,218,712   15,220,926   13,268,561  15,073,047
                     ==========   ==========   ==========  ==========

(a)  The net income per share amounts and weighted average shares
     outstanding have been adjusted to reflect a March 1, 1999 5%
     stock dividend.