Ballantyne To Provide 24 NEC Digital Projectors Equipped With REAL D 3-D Technology To Regal For October 19th Launch Of ''The Nightmare Before Christmas'' In Disney Digital 3-D

October 4, 2007

Ballantyne of Omaha, Inc. announced today that its Strong Digital Systems (SDS) division will provide 24 NEC STARUS™ NC2500S Digital Cinema projectors with REAL D 3-D technology to Regal Entertainment Group (NYSE: RGC). The 24 projectors will be shipped in time for the October 19th release of Walt Disney Pictures’ animated feature film The Nightmare Before Christmas in Disney Digital 3-D. Financial terms of the agreements were not disclosed. Digital Link II, LLC, a separate entity formed and co-financed by REAL D and Ballantyne, will fund the projector purchases. Digital Link is in discussions regarding securing per-film virtual print fees from feature film distributors – for both 3-D and non-3-D features - in order to reduce Digital Link’s and the licensee’s ultimate capital investment. John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, “We are pleased to extend our partnership with REAL D to deliver state of the art 3-D digital projection solutions to our longstanding customer, Regal Entertainment Group. The NEC STARUS digital projection system, combined with the REAL D 3-D digital 3-D solution, creates a memorable theater experience for Regal’s customers. “The sale underscores Regal’s commitment to state-of-the-art digital cinema projection systems, as Regal is also opening its Regal Fiesta 12 screen complex in Henderson, Nevada on October 12th. The Henderson complex, Regal’s first all-digital installation, is equipped with NEC digital projectors provided by Ballantyne. The dawn of digital projection is clearly upon us, and we continue to work closely with Real D and our customers to provide top quality solutions that expand our market penetration.”

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