Company to Update on Continued Progress with Proactive Management Plan
Reaffirms Guidance for Q1 2009

LodgeNet Interactive Corporation (NASDAQ: LNET), will present at the B. Riley Investor Conference today, during which LodgeNet Chairman and CEO Scott C. Petersen will review the Company’s progress on its strategies to proactively manage through the evolving economic environment.

“While economic conditions remain challenging, we continue to proactively manage our business and remain focused on right-sizing our operations, driving operating cash flows and reducing our debt,” says Petersen. “We believe we are taking the actions necessary to navigate through these trying times and strengthen our financial position.”

With regard to the First Quarter 2009, Petersen will comment on the following major focuses:

• “We have reduced our operating cost structure by 30% as compared to one year ago. We now expect to report combined Systems Operations and SG&A expenses in the range of $20 to $22 million for this year’s First Quarter as compared to $30.6 million last year. Part of this savings came from the full integration of On Command’s operations into our organization, but we also implemented other significant cost reduction initiatives during the Fourth Quarter of 2008 in quick response to the deteriorating economy. We reduced personnel by 20%, deferred compensation adjustments for all employees, suspended bonus plans and 401(k) contributions, and cut a wide variety of other operating expenses.”

• “We have reduced our First Quarter capital investment program by 75% as compared to the $19 million of cash flow we invested back into our business last year. We do have a great deal of flexibility and control over the timing of when we make our hotel-based investments. We expect that total capital investment will be approximately $5 million for the First Quarter of 2009.”

• “As the third element of our proactive management plan, we are presently allocating more than 75% of the cash flow generated by our operations to the accelerated payment of our credit facility, with the specific goal of maintaining compliance with our debt leverage covenant.  We reduced our debt by $21.9 million in the Fourth Quarter of 2008 and are targeting to reduce debt by more than $25 million during this First Quarter. At March 31st, we expect outstanding debt will be in the $561-$563 million range.”

“Our proactive management plan is mitigating the impacts of the current business environment,” said Petersen. “Based on our results to date in the current quarter, we are affirming our previously issued First Quarter guidance and anticipate maintaining full compliance with our First Quarter debt covenants.”

For the first quarter of 2009, LodgeNet continues to expect to report revenue in the range of $126.0 million to $131.0 million. Adjusted Operating Cash Flow* in the first quarter of 2009 is expected to be in a range from $30.5 million to $34.5 million while Net Free Cash Flow** is anticipated to be in a range of $16.0 million to $17.0 million during the period. Additional guidance information for the first quarter of 2009 can be found in the B. Riley Conference presentation slides, located under Company Presentations in the Investor Center section of the LodgeNet corporate Website http://www.lodgenet.com/.

* Adjusted Operating Cash Flow is a non-GAAP measure which we define as Operating Income (Loss) exclusive of depreciation, amortization, share-based compensation, impairment, restructuring, integration and reorganization expenses and the effects of  insurance recoveries.

** Net Free Cash Flow, a non-GAAP measure, is defined by the Company as cash provided by operating activities less cash used for investing activities, including growth related capital.

A live webcast of the B. Riley Conference presentation will be available at: http://www.wsw.com/webcast/brileyco12/lnet/. The webcast will be archived at that site for 90 days and can be accessed via LodgeNet’s company Website at http://www.lodgenet.com/.