Ballantyne of Omaha Supplies Five MegaSystems Large Format 8/70 Projection Systems to Theme Park in China.

Entertainment Editors

OMAHA, Neb.--(BUSINESS WIRE)--May 29, 2003

Ballantyne of Omaha, Inc. (OTC BB: BTNE), a leading manufacturer of motion picture projection and specialty lighting equipment, today announced that it has signed an agreement with the Changchun Film Studio Group Co., LTD (CFS) to provide five MegaSystems(R) 8/70 large-format projectors and related sound systems, as well as a 76-foot dome structure, to the Futurescope Movie Theme Park located in Changchun, Jilin Province, China.

This is the first MegaSystems order sold by the Company since it obtained the licensing rights for the projection system technology in December 2002. Revenues from the multi-million dollar sale will be recognized in the second half of 2003 as units are shipped and phases of the installation are completed.

Commenting on the award, John P. Wilmers, President and Chief Executive Officer of Ballantyne, said, "This agreement is a great example of Ballantyne's ability to successfully market and sell large format theater products, and it underscores the value of the MegaSystems brand throughout the world. The marketplace recognizes that while ownership of the brand may have changed, the commitment to service, quality and innovation associated with the product has not. Customers like the CFS know they will continue to receive the same dependable and personalized attention they've come to expect from MegaSystems over the years, but with the added benefit of Ballantyne manufacturing. We look forward to serving the CFS and other customers around the world with our large-format theater solutions."

The Futurescope Movie Theme Parks, presently being constructed by the renowned Changchun Film Studio in northeast China, will be a large movie park featuring tourist attractions, movie recreations and film shooting. The park will consist of cinemas with advanced sound-effect equipment, galleries, museums, and a photographic workshop, where people can be clear how a movie is made. Pursuant to the agreement, Ballantyne will supply five separate 8/70 projectors to the theme park including:

-- One 3D Giant Screen system comprised of a Mega 8/70/35

projector, a Mega 8/70 Projector, a custom 6.1 Sound System, a

60' x 80' Screen Frame and Masking;

-- One 4D Effects Theater system comprised of two Mega 8/70

Projectors, a custom 6.1 Sound System, a 40' x 60' Screen

Frame and Masking; and,

-- One 76' Dome Theater with a Mega 8/70 Projector, a custom 6.1

Sound System and a 76' Dome Structure.

Upon shipping, Ballantyne will also provide installation, training, and commissioning of the systems.

"After months of review, we decided that MegaSystems was the right choice for this project," said Zhang Min of the CFS. "The decision was based on our need for a flexible large-format solution that could seamlessly accommodate three separate sites, and the MegaSystems package provided the best response."

During the past 50 years the Changchun Film Studio Group, known as the cradle of New China's film making industry, has produced over 600 films, dubbed more than 800 foreign films, and won 70 awards at home and abroad, in addition to having trained over 1,000 outstanding actors, and actresses.

Ballantyne of Omaha is a leading U.S. supplier of commercial motion picture and specialty projection equipment utilized by major theater chains and location-based entertainment providers. The Company 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.

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.