LODGENET ENTERTAINMENT UNIFIES BUSINESS UNITS
UNDER NEW COMPANY NAME:
LODGENET INTERACTIVE CORPORATION

New Identity and Logo Reflect Company’s Mission to Create and Deliver New Innovative Solutions to Connect, Inform and Entertain

New Identity Supports Company Focus on Strategic Growth Initiatives: High-Definition Television Solutions, Broadband Internet Solutions, Professional Solutions and Advertising Media Solutions

SIOUX FALLS S.D., January 15, 2008 – LodgeNet (NASDAQ: LNET) announced today that it has brought its business units together under the new name, LodgeNet Interactive Corporation.  This decision was made in order to better align the company’s corporate identity with its strategic direction as a broadly-based provider of interactive media and connectivity services.  With this announcement, the company is marking the completion of an important milestone in the integration of its On Command and StayOnline acquisitions into one unified corporate structure and name. 

Going forward, the company will unify its operations under the name LodgeNet Interactive, and it will no longer use the names StayOnline or On Command as part of its corporate identity.  This integration reflects a major step in delivering on the company’s strategic plan to leverage the synergy and capabilities of the three organizations, forming the largest and most capable media and connectivity solutions provider dedicated to serving the needs of hospitality and other guest-based businesses.
 
Also, as a part of this announcement, the company unveiled a new logo that provides a visual identity consistent with its future direction as a leader in the delivery of digital solutions.  This visual identity and name change reflect LodgeNet Interactive’s commitment to its strategy of Expanding Networks and Integrating Solutions, and its focus on its four strategic growth initiatives that are central to its future direction:  High-Definition TV Solutions, Broadband Solutions, Professional Solutions and Advertising Media Solutions.
 
“The launch of our new name and logo represents our transformation from LodgeNet Entertainment, the leading provider of video-on-demand, to LodgeNet Interactive, the leading provider of interactive media and connectivity solutions for the industries we serve,” said Scott C. Petersen, President and CEO of LodgeNet Interactive.  “With this transformation and new identity, we will focus our broad set of competencies to deliver exciting and meaningful, new media and content solutions to our customers and their guests as technology continues to present new opportunities.

 “The rapid growth of High-Definition Television, high-speed Internet and digital media in the consumer market means that hotel guests have evolving expectations for media and connectivity solutions within the guest room, and they believe that their in-room experience should be as good as or better than at home,” said Scott E. Young, Senior Vice President and CMO of LodgeNet Interactive.  “Our new name and logo reinforce our focus on the future of interactive digital technology and our commitment to continue to be the most reliable and experienced provider of innovative solutions for the industry, now and in the future.”

Over the past 27 years, LodgeNet has consistently proven itself to be a leader in the delivery of innovative media solutions for the hospitality industry.  In recent years, the company has built on its leadership position through the development of the industry’s leading High-Definition television platform, the roll out of its advanced broadband solutions platform, GuestPass Director^TM, and its implementation of a wide variety of customized interactive system and network developments for its customers in hospitality and healthcare.  Examples of LodgeNet’s delivery of new media and connectivity solutions include:

• Planning and implementation of the Hilton Sight+Sound Room^TM, including room configuration, technology integration and installation, custom content and network upgrades.
• Implementation and support of Starwood’s “Scene@ Sheraton” program, which offers guests special access to exclusive content. This also included project consultation, custom system configuration and delivery of custom Sheraton programming.
• Design and implementation of a customized High-Definition media solution for Hyatt Place HD, including overall project planning and design, installation of High-Definition technology and creation and integration of a custom guest connectivity center.
• Design and implementation of numerous MATV systems in both healthcare and hospitality, including installations at The Waldorf=Astoria in New York, the Westin Arlington, and the Westin Boston Waterfront, as well as Sanford USD Medical Center (Sioux Falls, SD), Edward Hospital (Naperville, IL), Baylor Medical Center (Plano, TX), and THE HEART HOSPITAL Baylor Plano (Plano, TX).   
• Design and implementation of numerous high-speed data systems, and service support for over 225,000 rooms, including implementation of voice-over-WiFi services at Marriott Eastside and J.W. Marriott San Francisco. 

About LodgeNet Interactive

LodgeNet Interactive Corporation is the leading provider of media and connectivity solutions designed to meet the unique needs of hospitality, healthcare and other guest-based businesses.  LodgeNet Interactive serves more than 1.9 million hotel rooms representing 9,300 hotel properties worldwide in addition to healthcare facilities throughout the United States.  The company’s services include:  Interactive Television Solutions, Broadband Internet Solutions, Content Solutions, Professional Solutions and Advertising Media Solutions.  LodgeNet Interactive Corporation owns and operates businesses under the industry leading brands:  LodgeNet, LodgeNetRX, and The Hotel Networks.  LodgeNet Interactive is listed on NASDAQ and trades under the symbol LNET.  For more information, please visit www.lodgenet.com.

 
LodgeNet is a registered trademark of LodgeNet Interactive Corporation. Other trademarks are the property of their respective owners.

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High-Definition Television Solutions

With the advent of High-Definition programming, the television experience is undergoing a major transformation both at home and in the hospitality environment.  This transformation, with a focus on sharper, more vibrant high-definition images, high-quality digital sound and sleeker, more attractive television panels, has made the television experience even more important to hotel operators and their guests.  As a result of the opportunities presented by High-Definition programming, most hotels are now upgrading their television systems, re-affirming the television as the central focus of the guest room media experience. 

LodgeNet is the established leader in delivering High-Definition Interactive Media to the hotel industry, with the largest number of High-Definition installations in the industry today.  Its High-Definition Media systems provide both on-demand and free-to-guest programming in a high-quality, reliable and seamlessly integrated system.  In addition, the LodgeNet solution delivers exciting new features such as: pause, forward and save for on demand media, a compelling new High-Definition user interface, a broadly customizable interactive menu system and the largest selection of High-Definition Movie and Sports content available to the hotel guests.

“Hoteliers are transitioning to HD-capable TVs that require new content and services to deliver on the promise of a better viewing experience for guests.  LodgeNet has the most established capabilities to help create the best High-Definition solution for hoteliers and their guests” said Paul Johnson, LodgeNet Interactive VP of Product Management.  “We are focused on delivering the most compelling experience available to customers today and tomorrow, whether the customer requires a system that runs over a traditional cable system or an IP-based network.”

Broadband Internet Solutions

Broadband Internet access is now an essential amenity in the hospitality market, and a critical point of contact between guests and hotel brands.  Today LodgeNet Interactive provides Broadband access service and support to over 225,000 hotel rooms, and has focused its team on aggressive expansion in this rapidly growing market.  With the integration of StayOnline, LodgeNet has developed and expanded its Broadband data and service solutions, and is the largest integrated provider offering both Broadband and media solutions to the hospitality industry.
 
 “Broadband Internet is the most requested amenity by business travelers, and we believe the demands for high speed data services will continue to expand in terms of capacity and speed,” said Ron Peterson, Vice President of National Sales, IP Solutions, LodgeNet Interactive.  “LodgeNet is uniquely positioned to help hoteliers design, deliver and manage these complex networks as we have the broadest capabilities to provide content, connectivity, network design, installation and support for the unique needs of guest-based businesses on a national scale.  And with our 450 person national technical support team and 200 seat call center, we have the largest team dedicated to providing the service and support to ensure great customer experiences”

Professional Solutions 

LodgeNet brings 27 years of experience to bear on the challenge of designing, building and managing in-room video experiences for hotels and other guest-based businesses.  The company’s track record includes deep experience with every element of in-room entertainment system design, including: commercial TV hardware evaluation and testing, MATV design, installation and maintenance and content and technology integration. 

In response to customer demand for these and other services, LodgeNet has created a Professional Solutions Group dedicated to providing media and connectivity solutions including Planning and Design, Project Management, Content Customization, Ongoing Service Support and Financing.
 
Also announced today is LodgeNet’s new Certified Installation program, which is designed to provide hotels with a turn–key solution for HD transitions and ensure an effective implementation and high-quality guest experience.  The creation of the Certified Installation program was driven by LodgeNet’s experience with the issues facing its partners as they plan implement new technology solutions for their properties.  The program is supported by several major TV manufacturers.

“Hotels need an experienced partner in the video arena to help them avoid missteps and understand the implications of hardware choices, network design and various options for content in the new HD environment,” said Matt Sandvold, Senior Director of Technology and Content Implementation.  “While High-Definition Television is becoming an essential amenity for a large number of hoteliers, it is not a ‘plug and play’ process at this point in time. Many common pitfalls can be avoided with proper planning and management of new technology implementations for HD and other systems, and we are dedicated to helping our customers address these challenges and create great customer experiences.”

Advertising Media Solutions

LodgeNet delivers bundled advertising and marketing solutions customized for brands by leveraging its multiple platforms which include:  The Hotel Networks national cable programming platform, server-based custom channels, and interactive and standard video on demand.
   
The Hotel Networks is LodgeNet’s largest current Advertising Media opportunity, providing a dedicated advertising platform that delivers a premium package of cable networks into the upscale hotel room.  The Hotel Networks’ carefully constructed lineup of cable networks includes:  Fox News, MSNBC, CNBC, The Weather Channel, A&E, Biography, History Channel, National Geographic, Versus and CourtTV.  Today, through The Hotel Networks, LodgeNet Interactive provides Advertising Solutions in over 350,000 rooms across its current base, and is moving aggressively to expand the scope and offerings of its Advertising Media capabilities over the coming year.

“The fragmentation of audiences across all media is causing marketers to invest in alternative channels and distribution outlets that follow and engage their targets wherever they consume media,” said Suzanne Alecia, President, Advertising Sales, The Hotel Networks “The out-of-home advertising marketplace is growing at twice the rate of the overall ad market, and LodgeNet Interactive is strongly positioned to help marketers by delivering large scale, unique and measurable entry points to millions of qualified consumers outside of the home.”