Exhibit 99.1

Ballantyne Strong Reports Diluted Q1 EPS of $0.17 on

38% Increase in Net Revenues to $44 Million

OMAHA, Nebraska (May 3, 2012) 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 first quarter ended March 31, 2012.

First Quarter Highlights

·                  Net revenues increased 38% to $44.0 million compared to Q1 2011.

·                  Operating income increased 50% to $3.4 million compared to Q1 2011.

·                  Achieved diluted earnings per share of $0.17 compared to $0.11 per share in Q1 2011.

First Quarter Results

Ballantyne Strong’s net revenues increased 38% to $44.0 million, led by an 88% year-over-year increase in digital product sales.  Cinema service revenues also increased 48% to $3.7 million when compared to Q1 2011, pursuant to the Company’s ongoing focus on further increasing its after-sale maintenance and NOC (Network Operations Center) 24/7 monitoring businesses, in addition to digital projection system installation and integration work on behalf of North American theatre owners and other clients.

Cinema screen sales were $3.0 million during the three-month period, versus $6.8 million a year ago.  The decline was primarily the result of exhibitors accelerating their digital 3-D rollouts last year in anticipation of upcoming 3-D movie releases.

The Company generated 50% growth in operating income to $3.4 million, up from $2.2 million in the year-ago quarter.  In addition to the aforementioned improvement in digital product and service revenues during Q1, operating income also benefitted from a $0.9 million gain resulting from the sale of Ballantyne’s analog projector manufacturing machinery and equipment, previously classified as held for sale.  Net earnings were $2.4 million, or $0.17 per diluted share, a more than 61% increase compared to $1.5 million and $0.11 in Q1 2011, respectively.

Consolidated gross profit increased 5% to $6.3 million, or a 14.4% gross margin on net revenues, compared to gross profit of $6.1 million, or 19.0% of net revenues in the year-earlier period.  The gross profit increase was mainly due to Ballantyne’s significant rise in digital product sales.  The corresponding margin decline was primarily attributable to an increase in the relative contribution of digital product sales to the overall revenue mix since these typically carry higher price points but lower margins.  Higher margin screen sales were also a lower contributor to the Company’s top-line results, versus the year-earlier Q1.

Selling expenses were $0.8 million, or 1.9% of net revenues, compared to $1.0 million in Q1 2011, or 3.1% of net revenues.   General and administrative expenses were $3.1 million, or 7.0% of revenues, versus $2.8 million in Q1 2011, or 8.9% of prior-year revenues.  The modest increase reflects higher recruiting costs, travel expenses and professional fees.  The ratio of administrative expenses to revenues declined on a year-over-year basis, reflecting the large top-line increase.

Balance Sheet and Cash Flow Update

Ballantyne’s cash and cash equivalents balance at quarter-end was $37.3 million, compared to $39.9 million at December 31, 2011, with the decline primarily reflecting $2.7 million (558,097 shares) in transactions under the Company’s previously announced, Board-authorized stock repurchase program.  The $3.1 million receivables decline was due to the generation of higher sales volume in Q4 2011, as compared to the first quarter of 2012.

Ballantyne accelerated the purchase of certain inventories in Q1 to take advantage of vendor discounts on equipment expected to be sold in Q2 2012.  The Company provided cash from operations of approximately $0.01 million, including cash received of $1.5 million resulting from a return on investment from its Digital Link II joint venture.

Commenting on the Company’s operating results, President and CEO Gary L. Cavey stated, “The 2012 first quarter was another solidly profitable reporting period for Ballantyne, driven by a continuation of strong demand from North American theatre owners for our one-stop, wide array of digital projection equipment.  In addition, we also generated another strong increase of digital cinema service customers, an area we are actively focusing on further expanding, especially given its recurring nature and scalability.

“With the virtual print fee (VPF) arrangement set to expire later this year, we should continue to see strong demand from domestic theatre owners looking to digitize their screens before these subsidies run out.  Due to the challenges many smaller exhibitors have been experiencing in securing the requisite funding on their own to convert analog screens to digital format, we believe Ballantyne continues to be uniquely positioned to capitalize on this opportunity given our wealth of cinema industry relationships here in North America.

“We will also continue focusing on increasing digital equipment sales to foreign markets, including China and Latin America.  We are exploring ways to further enhance our cinema screen offerings through research and development while also shipping more screens overseas.  Ballantyne is evaluating ways to expand our service footprint to more cinema customers and also to related industries, as well as internationally, and we are also placing a renewed emphasis on our lighting business, especially in targeting the architectural space where we see lots of opportunities for further inroads,” concluded Mr. Cavey.

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-

2

Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

Three Months Ended March 31, 2012 and 2011

(Unaudited)

3

Ballantyne Strong, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

March 31, 2012 and December 31, 2011

(In thousands)

(Unaudited)

4

Selected Cash Flow Statement Items (Unaudited):

CONTACT:

# # #

5