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LodgeNet Announces Milestones and Reaffirms Guidance

LodgeNet Entertainment Corporation , one of the world’s largest providers
of interactive television systems and broadband services to the
hospitality industry, announced today that it has officially installed its
one-millionth hotel room. More than one hundred thousand of those rooms
are installed with the Company’s new sigNETure TV marketing and
entertainment system. The Company also updated its first quarter 2004
financial guidance today during a presentation at the CIBC Gaming, Lodging
& Leisure Conference in New York City. “We are pleased to announce the achievement of two very significant
milestones,” said LodgeNet President and CEO Scott C. Petersen. “First, we
have reached the milestone of serving one million rooms. We accomplished
that by being the most innovative and service-oriented company in our
industry, growing our business on the foundation of long-term contracts,
one room at a time. Secondly, our sigNETure TV product, launched just last
year, is now in more than 100,000 guest rooms across seven national
brands. sigNETure TV takes innovation and service to a new level, allowing
hotels to tailor the look, feel and content offerings to best suit their
individual marketing and entertainment needs.” sigNETure TV solutions can
be found in seven national brands, including Doubletree(R), Embassy
Suites(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton(R), Hilton
Garden Inn(R), and Homewood Suites by Hilton(R).

With regard to financial results for the first quarter of 2004, LodgeNet
expects to report revenue of between $62.5 million and $66.5 million,
resulting in $1.3 million to $3.3 million in operating income. Operating
income exclusive of depreciation and amortization is expected to be $21.0
million to $23.0 million during the quarter. Net loss is expected to be
$(6.9) million to $(4.9) million or a loss per share of $(0.54) to $(0.39)
for the first quarter of 2004.

LodgeNet Entertainment Corporation ( ) is one of
the leading providers in the delivery of broadband, interactive services
to the lodging industry, serving more hotels and guest rooms than any
other provider in the world. These services include on-demand digital
movies, digital music and music videos, Nintendo(R) video games,
high-speed Internet access and other interactive television services
designed to serve the needs of the lodging industry and the traveling
public. As the largest company in the industry, LodgeNet provides service
to nearly one million rooms including more than 957,000 interactive guest
pay rooms in more than 5,800 hotel properties worldwide. More than 260
million travelers have access to LodgeNet systems on an annual basis.
LodgeNet is listed on NASDAQ and trades under the symbol LNET.