Exhibit 99.1

Ballantyne Reports Diluted EPS of $0.17 on 15% Increase in

Net Revenues to $37.6 Million

OMAHA, Nebraska (August 8, 2011) 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 second quarter (Q2) and six months ended June 30, 2011.

Second Quarter Highlights

·                  Increased net revenues 15% to $37.6 million compared to Q2 2010.

·                  Increased operating income 17% to $3.7 million compared to Q2 2010.

·                  Improved cash flow by $9.2 million over first quarter 2011.

·                  Achieved net earnings per diluted share of $0.17 compared to $0.13 per share in Q2 2010 (excluding $0.06 per share of equity income and gains pertaining to the Company’s 44.4% ownership in the Digital Link II, LLC joint venture).

Second Quarter Results

Ballantyne Strong’s net revenues rose 15% to $37.6 million, led by digital projection system and cinema service revenues, which increased 34% and 38% year-over-year to $26.4 million and $2.9 million, respectively.  Cinema screen sales grew approximately 9% to $4.9 million.  The Q2 screen business was lower sequentially compared to a very strong performance in the prior quarter as some of the Company’s larger domestic customers slowed their 3-D compatible silver screen orders as certain exhibitors had previously accelerated their digital rollouts to meet certain 3-D movie releases.

The strong Q2 2011 digital projection system sales more than offset lower sales of film-based products during the period compared to a year ago.  With the ongoing momentum of the global digital cinema transformation, film-based products continue to be a smaller contributor to the Company’s top-line results, generating $2.6 million in aggregate, versus $5.5 million in the 2010 second quarter.

Ballantyne generated $3.7 million of operating income, compared to $3.2 million in the year-ago quarter, due to the increased sales achieved by the Company as operating margins remained consistent with the prior year.  Ballantyne’s net earnings were $2.5 million, or $0.17 per diluted share, compared to $2.8 million, or $0.19 in Q2 2010.  The prior-year period results were positively impacted by approximately $1.3 million ($0.8 million after-tax), or $0.06 per diluted

share, of equity income and gains pertaining to the Company’s Digital Link II joint venture with RealD (NYSE: RLD).

Consolidated gross profit increased 14% to $6.8 million, or an 18.0% gross margin on net revenues, compared to gross profit of $6.0 million, or 18.2% of net revenues in the year-earlier period.  Selling expenses were $1.0 million, or 2.7% of net revenues, up from $0.8 million in Q2 2010, or 2.6% of net sales.  The year-over-year increase was primarily the result of additional personnel to expand our international and service marketing efforts and to support our sales offices in China.   General and administrative expenditures were essentially flat on a year-over-year basis at $2.1 million, but declined to 5.6% of net revenue, compared to 6.5% in the prior year.

Six-Month Results

Net revenues rose approximately 20% to $69.5 million.  Gross profit was $12.8 million, or 18.5% of net revenues, compared to 2010 gross profit through the first six months of $10.3 million, or 17.7% of net revenues.  Net earnings were $4.0 million, or $0.28 per diluted share, compared to net earnings of $3.8 million, or $0.26 per diluted share, in the first half of 2010.

Balance Sheet and Cash Flow Update

Ballantyne’s cash and cash equivalents balance at quarter-end increased significantly to $20.8 million, up from $11.6 million at March 31, 2011.  As previously disclosed, the lower cash balance at Q1 2011 was largely due to a temporary inventory increase to support future digital projection equipment sales.  In Q2, the Company generated cash flow from operations of $9.2 million and spent approximately $0.2 million on capital expenditures.

President and CEO Gary L. Cavey stated, “Ballantyne’s domestic cinema business performed very well during the second quarter as we generated strong year-over-year comparisons in digital projection equipment sales and service.  We continue to benefit from the Company’s unique positioning as a turnkey cinema product and services provider, with a wealth of industry relationships established over approximately eight decades in the cinema business.  Our service group remains very active with projection system installs and integrations and we are also more aggressively marketing our NOC services to a receptive audience, including many potential targeted customers who did not originally purchase equipment and/or installations from us.

“We are focused on driving more international screen sales and also recently bolstered Ballantyne’s Asian senior management team with the addition of an experienced Chief Operating Officer to support sales efforts in China and other Far Eastern countries where we continue to see opportunities to sell our products and services.

“Given our cash position and untapped $20 million credit facility, we continue to be well-positioned to both fund our working capital needs and explore M&A activities.  We intend to effectively deploy this capital as we pursue strategic growth opportunities developed through our merger and acquisition strategy and other strategic initiatives.  To assist with these efforts we have retained the investment banking firm of George K. Baum & Company.

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“Our management team remains focused on completing accretive purchases that most effectively leverage and build upon our unique positioning as a leading turnkey provider of digital cinema products and services and our core competencies including strong customer service, global distribution and service networks, and proven skills in providing integration and installation of electronic components, among other items.  While Management and the Board continually explore capital deployment strategies, we collectively agree that the time is not right for alternative allocations of capital, including, but not limited to, dividends and stock repurchases.

“We expanded and further enhanced our U.S. senior management team with the recent appointment of seasoned corporate executive Mary A. Carstens as the Company’s new CFO.  Mary brings three decades of relevant financial experience to Ballantyne, as well as expertise in navigating international markets, including Asia.  Importantly, former CFO, Kevin Herrmann will continue to serve the Company in a senior financial role as Vice President, Secretary and Treasurer.  He will also remain active in shareholder relations.  Kevin has very strong industry knowledge and a long, successful tenure with our organization.  Lastly, we welcomed two new directors in June when Samuel C. Freitag and Donde Plowman agreed to join our Board.”

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

Ballantyne Strong is a provider of digital cinema projection equipment and services as well as cinema screens, motion picture projectors and specialty lighting equipment and services.  The Company supplies major and independent theater chains, top arenas, 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.

-tables follow-

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Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

Three and Six Months Ended June 30, 2011 and 2010

(unaudited)

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Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

June 30, 2011 and December 31, 2010

(in thousands)

(unaudited)

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Selected Cash Flow Statement Items (unaudited):

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