JOLIETTE, QUEBEC and OMAHA, NE (July 15, 2010) – Ballantyne Strong, Inc. (NYSE Amex: BTN), a provider of digital cinema projection equipment and services, cinema screens and other cinema products, announced today that it has completed the acquisition of the Joliette, Quebec (Canada) facility that houses its Strong/MDI cinema screen manufacturing operations, as well as an adjacent parcel of land.  Strong/MDI previously leased the facility.  The acquisition will enable Ballantyne to significantly expand its cinema screen production facility and related capacity to meet rapidly growing global demand for conventional, large-format, “gain,” silver and other specialized screens.  Ballantyne estimates the capital investment in the building, land and facility expansion will approximate $6 million, with completion targeted for year-end 2010.

The expansion plan involves adding more than 26,000 square feet of production space and related state-of-the-art systems and equipment in Strong/MDI’s ISO 9001 screen operations.  This expansion of approximately 35% over the existing structure will substantially increase key production areas including the painting towers, PVC welding, rolling and drying areas to support a growing base of global business domestically and internationally.

Regal Entertainment Group (NYSE: RGC) Senior Vice President and Chief Purchasing Officer Rob Del Moro, stated, “Strong/MDI has been integral in providing Regal with state-of-the-art silver screens as we transform our circuit to support 3D digital cinema.  This relationship builds on a decades-long partnership with Ballantyne Strong that now also encompasses their skilled team of technicians who are overseeing the turnkey installation and integration of thousands of digital projection systems at Regal theaters across the country.”

Chris Stark, Senior VP and Chief Operating Officer of Ballantyne, commented, “Strong/MDI’s screen backlog has been steadily growing as we have been operating at peak capacity in Joliette for several months now.  With the global digital cinema transformation picking up momentum and straining our ability to meet demand, it became clear that we needed to invest in expanding Ballantyne’s production capabilities to better meet global sales opportunities.  After much review, we determined that expanding our current plant was the best path forward, but that required us to purchase both our building and adjacent land to provide sufficient space for this expansion.  When complete, our Joliette facility will have a total of approximately 75,000 square feet of production area, making it one of the largest such facilities in the world.”

About Ballantyne Strong, Inc. (www.ballantyne-strong.com)

Ballantyne is a provider of motion picture projection, digital cinema projection, cinema screen technology and specialty lighting equipment and services.  The Company supplies major theater chains, 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’s expectations.

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CONTACT:

Kevin Herrmann                                                      Robert Rinderman, David Collins

Chief Financial Officer                                              Jaffoni & Collins Incorporated

402/453-4444                                                        212/835-8500 or btn@jcir.com

With 32 employees, based outside Montreal, MDI is a market-leader in the North American screen manufacturing industry. MDI expects fiscal 2007 revenue to approach $ 4 million (CAD). Like Ballantyne, MDI has an excellent reputation for quality products and service, strong customer relationships and boasts an experienced technical staff. MDI continues to invest in new cinema screen technologies and has been very active in providing specialty “silver” screens required for certain 3-D cinema technologies including the Real D 3-D technology.

Benoit Mailloux, acting CEO of MDI commented, “Ballantyne represents the ideal partner for MDI as we share a strong commitment to industry-leading products and customer service. We believe there is substantial synergy between our respective product lines and customer bases that should drive growth for both our businesses as the conversion to digital cinema gains momentum. We expect the exhibition industry will embrace the opportunity to procure projectors and screens from one vendor. Our late founder and Chief Executive Officer, Marcel Desrochers, was a strong supporter of the combination of the two companies and worked actively on developing the structure.”

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, “The acquisition of MDI is consistent with our strategy to leverage our core business through acquisitions of complementary products and services while maintaining our focus on the digital cinema rollout. With MDI’s proven leadership in the North American cinema screen market and its strong relationships with industry leaders like Real D, we are very excited by the potential benefits of this transaction. The goal of our R & D program is to leverage our cash position to expand our slate of industry-leading products and services so that we can best support the needs of our customers and their overall ‘auditorium experience.’”

About Marcel Desrochers Inc. (MDI)

Founded in 1968 to provide draperies and scenery to the opera industry, MDI began manufacturing front projection cinema screens in 1981. To meet growing demand for PVC cinema screens, in 1987 MDI opened a new plant in Joliette. In 1997, MDI expanded the facility to include a new, state-of-the-art, 90-foot high painting tower to enable the production of large-scale cinema screens. MDI produces a wide range of cinema screen products and accessories to serve the analog, digital and 3-D cinema exhibition markets as well as for homes and smaller venues in all parts of the world. Visit www.strong-mdicinema.com for more information.

About Ballantyne:

Ballantyne is a provider of motion picture projection, digital cinema projection and specialty lighting equipment and services. The Company supplies major theater chains, top arenas, television and motion picture production studios, theme parks and architectural sites around the world. For more information visit www.ballantyne-omaha.com.