China Film Group Selects Ballantyne/Strong to Provide and Install 100 Digital Cinema Projectors in Mainland China

Ballantyne of Omaha, Inc. (NYSE Alternext US: BTN), a provider of cinema equipment and services, announced today that its Strong Westrex Company, Asia subsidiary has been selected to provide and install 100 NEC STARUS™ NC1600 Digital Cinema projectors for China Film Group Corp. Initial shipments are slated for Q1 2009, with the bulk of the order targeted for Q2 2009. Strong Westrex will install the projectors for China Film Group in locations across China.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, “We are pleased to extend our longstanding relationship with China Film Group into the digital realm with this initial digital projection equipment and installation contract. We are also excited that China Film Group recognizes the high quality and performance of the NEC Starus digital projector systems, as well as the value Strong Westrex brings in managing the sales, installation and logistics processes. We look forward to working closely with China Film Group and their partners in the coming years to support them in the adoption of digital cinema as well as 3-D cinema projection technology.”

Ballantyne executed an agreement with NEC Display Solutions Japan in Q3 2008, granting Strong Westrex distribution rights to NEC’s Starus line of digital cinema projectors for the Peoples Republic of China (PRC). In conjunction with the PRC distribution agreement, Strong Westrex opened a sales and service office in Beijing. The PRC represents a very attractive, rapidly growing cinema market both in terms of screens and ticket sales. The country currently has approximately 6,000 cinema screens and that base is anticipated to grow in the coming years.