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# 1930 de Forest

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OMAHA, Neb. & HONG KONG—Oct 24, 2006

Ballantyne Expands Digital Cinema Distribution into Hong Kong

Strong Westrex Subsidiary Granted Hong Kong Distribution Rights for NEC Digital Cinema Projectors
Ballantyne of Omaha, Inc. (Amex: BTN), a motion picture projection, specialty lighting and digital cinema equipment and services provider, announced today that its Asian distribution subsidiary, Strong Westrex, has secured Hong Kong distribution rights from NEC Viewtechnology Ltd. for its line of Digital Cinema Projectors. Strong Westrex has served the Hong Kong market's traditional cinema needs for over fifty years.

Strong Westrex has been granted a non-exclusive license to distribute NEC's digital cinema projectors, which use Texas Instruments DLP (Digital Light Processing) Cinema(TM) technology, in Hong Kong. The agreement expands upon Ballantyne's existing position as master reseller of NEC projectors in the Americas. The Hong Kong license is renewable, with an initial two-year term, and it specifies minimum sales goals. Strong Westrex will also provide service and support for all digital cinema products sold in the Hong Kong territory.

The Hong Kong cinema market currently consists of approximately fifty theaters with a total of approximately 200 cinema screens. Strong Westrex maintains over 60% of the 35mm traditional projection systems currently in operation in Hong Kong. To date, only one theater screen in the territory has been equipped for digital cinema projection.

Ballantyne president and CEO, John P. Wilmers, commented, "Hong Kong is an important, influential cinema market where our Strong Westrex subsidiary has built a strong and loyal base of customers in traditional cinema over more than fifty years, including the past twelve years under Ballantyne's ownership. Expanding our product and service offerings to include NEC digital cinema projectors represents an exciting growth avenue and the natural evolution of our business in Hong Kong. We look forward to working closely with NEC to leverage this important digital cinema opportunity."
About Ballantyne Strong Inc.: Ballantyne Strong Inc. is a provider of digital cinema projection equipment, screens and services as well as specialty lighting equipment. The Company supplies major and independent theater chains, top arenas, theme parks and architectural sites around the world. Ballantyne Strong is a value added reseller of major brands that include BARCO, NEC, Doremi, GDC, USL, Dolby and QSC. Excellent products coupled with Strong Technical Services providing installation, integration, NOC (Network Operation Center) and field service. Ballantyne Strong Inc.is a true turn-key provider for sales and service to cinema chains of all sizes. Ballantyne Strong Inc. Directory page
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