To Discuss Progress on Strategic Initiatives Including Milestones
Related to High-Definition Television Deployments and Healthcare Contracts; Business Model Positioned To Capitalize On Rebounding Economy

LodgeNet Interactive Corporation (NASDAQ: LNET), the leading provider of media and connectivity solutions to hospitality and healthcare businesses, will present at the CL King Best Ideas Conference at the Omni Hotel in New York City on Thursday, September 17, 2009.  CEO Scott C. Petersen will discuss the Company’s overall strategy and its progress on its initiatives to proactively manage its business during the economic cycle, diversify its revenue streams and increase its free cash flow.  Petersen will also comment on the operating leverage inherent in its business model as the economy begins to recover.

“During the economic downturn over the past year, our team has done an outstanding job right-sizing our operations and capital investment plans to the economic environment,” said Petersen.  “Operating costs for the first six months of 2009 were down 26.8% as compared to the same period last year, and we reduced our capital investment activity by over 70% – both of which actions allowed us to increased free cash flow from $3.7 million during the first six months of last year to over $30 million this year.  With the preferred stock offering we completed in June, our leverage ratio (on a net debt basis) has improved substantially from 4.2x on June 30th one year ago to 3.7x this year.”

“At the same time, we have continued to focus on executing on our strategic initiatives that will increase our revenue and deliver shareholder value over the long term,” stated Petersen.

Some recent highlights of these Initiatives:

• LodgeNet recently passed an industry-leading milestone of providing high-definition television (HDTV) programming to approximately 300,000 rooms, including 200,000 rooms installed with its High-Definition Advanced video on demand platform, allowing hotel guests to enjoy Hollywood movies in high definition clarity.
• Recently announced collaborative relationships with a variety of technology leaders, among them one for the LodgeNet IPTV+ platform, which incorporates the power of the Apple® Mac Mini into the LodgeNet interactive television system.
• LodgeNet’s Healthcare division recently signed its 50th hospital contract. Recent new contracts include prestigious Morgan Stanley Children’s, ranked among the top children’s hospitals by US News & World Report, and the award-winning Indiana Orthopaedic Hospital.
• The Hotel Networks is expanding its innovative media programming with the addition of the Japan Broadcasting Corporation’s English-speaking NHK World Channel to its SuperBlock offering as well as Luxury Explorer, which offers local interest and customized hotel programming for high-end hotel properties, as one of its Interactive Channels.

“The Third Quarter is generally tracking in-line with our expectations,” continued Petersen.  “We have seen some improvement in Guest Entertainment during the quarter but softness continues in business travel and capital spending by our hotel customers.  September tends to be a difficult month to predict Guest Entertainment revenue because of the seasonal transition from leisure to business travel; however, we currently believe we will report third quarter Revenue and Adjusted Operating Cash Flow at around the low end of our guidance range, while Free Cash Flow will be within our original expectations.”

“With our strategic acquisitions in 2007 and the more efficient operational structure we now have in place, our business model has significant operating leverage which should produce benefits for our Company as hotel occupancies increase and consumer confidence returns,” concluded Petersen.  “If Guest Entertainment recovers by only 50% of the decline we have experienced over the past year, annualized Revenue and Adjusted Operating Cash Flow should generally increase by $40 million and $25 million respectively, all other things remaining the same – representing a significant upside opportunity for shareholder value.”

LodgeNet management is scheduled to present Thursday, September 17, 2009 at 2:45 pm Eastern Time.  A live Webcast of the presentation and a copy of the slides will be available in the investor section of the Company’s Website.  View presentation slides