Omaha, Neb. --Ballantyne Strong, Inc. (NYSE Amex: BTN), a provider of digital cinema projection equipment and services, cinema screens and other cinema products, today reported financial results for the third quarter (Q3) and nine months ended September 30, 2010.

Third Quarter Results

Ballantyne Strong's net revenues rose 99% to $32.9 million, its second consecutive all-time record quarter, as a result of significant year-over-year sales increases in digital cinema equipment, cinema screens and digital cinema services. Net earnings rose to $2.3 million, or $0.16 per diluted share, compared to net earnings of $0.5 million, or $0.04 per diluted share a year-ago.

Sales of digital cinema equipment rose 291% to $20.2 million, reflecting continuing global demand for the Company's digital projection systems, primarily in the Americas and China. Ballantyne's cinema screen sales increased approximately 77% to $5.0 million in Q3 2010, principally due to accelerating demand for specialty "silver" screens used for digital 3D as exhibitors continue to upgrade certain theatre auditoriums to 3D. Cinema services revenue rose 148% to $2.2 million, reflecting growing demand for Ballantyne's team of over 60 digital cinema technicians to complete digital projection equipment installations and integrations.

Consolidated gross profit rose to $6.5 million, or 19.6% of revenue in Q3 2010, from $3.6 million, or 21.5% of revenue in Q3 2009. The expected decline in gross profit margin reflects the increase in digital projection equipment sales that carry lower margins than most of the Company's other products and services. SG&A rose 20.5% to approximately $2.9 million but declined significantly as a percentage of net revenues to 8.9%, compared to 14.7% in Q3 2009.

Nine-Month Results

For the nine-months ended September 30, 2010, net revenues rose 70.8% to $91.0 million. Gross profit in the first nine months of 2010 was $16.7 million, or 18.4% of net revenues, compared to 2009 gross profit of $11.2 million, or 21.0% of net revenues. Net earnings for the first nine months of 2010 were $6.1 million, or $0.42 per diluted share, compared to net earnings of $2.0 million, or $0.14 per diluted share, in the same period of 2009.

Balance Sheet Update

Ballantyne used $1.5 million in cash from operating activities in Q3 ‘10 and ended the period with $19.2 million in cash and cash equivalents, compared to $23.6 million at December 31, 2009. As previously announced, Ballantyne is investing in the expansion of its Quebec-based Strong/MDI cinema screen manufacturing facility, including the purchase of the existing facility and an adjacent parcel of land, and has commenced the expansion of the facility's manufacturing capacity. Approximately $0.5 million of the $6 million expansion program was expended during Q3 2010. Ballantyne also deployed additional capital to complete its state-of-the-art Digital Network Operations Center (NOC), which provides 24/7 remote monitoring services capable of tracking and servicing a wide array of digital systems. The NOC opened October 1 at the Company's Omaha, NE headquarters.

On November 1, Ballantyne announced the appointment of Gary L. Cavey as President and Chief Executive Officer, replacing retiring CEO John P. Wilmers, who will remain with the Company and focus on Ballantyne's growing business opportunities in Asia.

Gary Cavey, commented, "This is a very exciting time to join Ballantyne, as the Company is solidly positioned and achieved another revenue record in Q3, as the theatre industry's conversion to digital projection technology, including digital 3D, gained momentum. The digital trend is enabling strong growth in digital projector systems, cinema screens and digital cinema services. Through the first nine months of this year, Ballantyne sold 931 digital projection systems, generated $13.0 million from cinema screen sales and installed approximately 1,200 digital projection systems.

"The expansion of our ISO 9001 Strong/MDI screen manufacturing facility is on-schedule, and when completed its capacity will be approximately 35% greater. The opening of our NOC is another key step in our evolution as a full-service digital cinema product and services provider. In addition to the NOC's value to our exhibitor clients with remote monitoring and servicing, we are also focusing on expanding and diversifying the NOC's services into other digital systems including audio, flat panels and associated networks that provide unifying connections and systems security."


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KNOXVILLE, Tenn. -- Regal Entertainment Group (NYSE:RGC), a leading motion picture exhibitor owning and operating the largest theatre circuit in the United States, announces the addition of six locations for the new giant screen all-digital format branded the Regal Premium Experience ("RPX"). Technicians will convert an existing auditorium at each location to accommodate the state-of-the-art experience in sight and sound. Two of the newly announced RPX locations are scheduled to open this month. Four new RPX locations are scheduled for the first quarter of 2011.

"The Regal Premium Experience transforms an existing auditorium into a world-class entertainment environment with crystal clear pictures on a giant screen and a custom-built sound system that delivers an exceptional moviegoing experience," stated Greg Dunn, President and Chief Operating Officer for Regal Entertainment Group. "RPX also provides Regal the ability to respond to customer demands, programming the most popular films each week in a premium environment. Regal is committed to continuing the rollout of RPX amenities to additional markets across the country."

RPX presents movies the way filmmakers intended with powerful, uncompressed surround sound and bright eye-popping images in 2D and RealD 3D. Patrons will enjoy the custom-built premium environment featuring elegant and luxurious seats with high-back headrests, a giant immersive screen illuminated by high-quality digital projectors and completed with a state-of-the-art sound system for the best picture you've ever heard!

Six newly announced RPX locations
Seattle - Regal Alderwood Stadium 7 - November 2010
Anchorage - Regal Tikahtnu Stadium 16 - November 2010
Houston - Edwards Greenway Grand Palace Stadium 24 - Q1 2011
Los Angeles - Edwards West Covina Stadium 18 - Q1 2011
Chicago - Regal City North Stadium 14 - Q1 2011
Philadelphia - Regal Warrington Crossing Stadium 22 - Q1 2011

Previously opened or announced RPX locations
NYC - Regal E-Walk Stadium 13 - April 2010
Miami - Regal Kendall Village Stadium 16 - May 2010
Boston - Regal Fenway Stadium 13 - November 2010
Greenville - Regal Hollywood Stadium 20 - November 2010
Atlanta - Regal Kennesaw Town Center Stadium 16 - November 2010


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Burbank, CA -- Enter the bank robbery capital of America when The Town arrives on Blu-ray Combo Pack and DVD December 17th from Warner Home Video. Ben Affleck helms this critically acclaimed dramatic thriller about robbers and cops, friendship and betrayal, love and hope, and escaping a past that has no future. The Blu-ray Combo Pack includes an extended cut of the film which incorporates never-before-seen footage and many more special features.

Charlestown, Mass. A neighborhood in Boston that has produced more bank robbers than anywhere in the U.S., including Doug MacRay, who is the leader of one of the most ruthless groups on the streets. Doug realizes that he has committed many wrongs in his life and starts to yearn for a way out of this lifestyle and out of Charlestown. But with the Feds hot on his tail and the gang questioning his loyalty, Doug realizes that getting out will not be as easy as he hoped.
Academy Award® winner Ben Affleck ("Good Will Hunting," "Gone Baby Gone") directs and stars in The Town, which also features performances from Rebecca Hall ("Vicky Cristina Barcelona"), Jon Hamm ("Mad Men"), Oscar® nominee Jeremy Renner ("The Hurt Locker"), Blake Lively (upcoming "Green Lantern," "The Sisterhood of the Traveling Pants"), Titus Welliver ("Gone Baby Gone"), with Oscar® nominee Pete Postlethwaite ("In the Name of the Father," "Inception"), and Academy Award® winner Chris Cooper ("Adaptation").
The Town will be available on Blu-ray Combo Pack, featuring a hi-definition version of both the theatrical film and the extended cut. It also includes of the movie as well as a standard definition version and a digital copy of the theatrical film, for $35.99 and on Single Disc DVD for $28.98 SRP.

On December 17, The Town will be available for rent ON DEMAND through Digital Cable, Satellite TV, and select game consoles. It is also available to buy through DIGITAL DOWNLOAD from digital movie retailers and select game consoles.

It will also be available to rent via kiosks and subscription on January 14, 2011.

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Burbank, CA -- Get ready for action this holiday season when the stunning fantasy family adventure "Legend of the Guardians: The Owls of Ga'Hoole" flies onto Blu-ray 3D Combo Pack, Blu-ray Combo Pack and DVD on December 17th from Warner Home Video.

"Legend of the Guardians: The Owls of Ga'Hoole" follows two owls, Soren and Kludd, both who have radically different dreams in life, as they navigate the perilous world they find themselves in after falling from their treetop home. When they get snatched up by the Pure Ones, Soren makes a daring escape and, with other young owls, soars across the sea to find the home of the legendary Guardians -- Soren's only hope of defeating the Pure Ones and rescuing his older brother.

Directed by acclaimed filmmaker Zack Snyder and based on the beloved "Guardians of Ga'Hoole" books by Kathryn Lasky, "Legend of the Guardians: The Owls of Ga'Hoole" features the voices of Abbie Cornish, Emilie de Ravin, Ryan Kwanten, Helen Mirren, Sam Neill, Geoffrey Rush, Jim Sturgess, Hugo Weaving and David Wenham.

"Legend of the Guardians: The Owls of Ga'Hoole" will be available on Blu-ray 3D Combo Pack, featuring a 3D hi-definition, a hi-definition, a standard definition and a digital copy of the film, for $44.95, Blu-ray Combo Pack, featuring a hi-definition, a standard definition and a digital copy of the film, for $35.99 and on single disc DVD for $28.98.

On December 17, "Legend of the Guardians: The Owls of Ga'Hoole" will be available for rent ON DEMAND through Digital Cable, Satellite TV, and select game consoles. It is also available to buy through DIGITAL DOWNLOAD from digital movie retailers and select game consoles.

It will also be available to rent via kiosks and subscription on January 15, 2011.


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