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LodgeNet Sign Agreement to Offer Disney Channel

LodgeNet , the world’s largest
provider of broadband interactive television services to the hospitality
industry, announced today that Disney Channel On Demand will premiere June
1 on its digital systems across the United States. LodgeNet President and
CEO Scott C. Petersen made that announcement while also reaffirming the
Company’s second quarter 2004 financial guidance today during a
presentation at the Bear Stearns 13th Annual Global Credit Conference in
New York City. LodgeNet will offer on-demand access to select Disney Channel programming
at more than 2,200 hotels nationwide. Disney Channel On Demand offers
series from the Channel’s Playhouse Disney programming block for
preschoolers such as “JoJo’s Circus” and “Stanley” as well as Disney
Channel Original Movies and original series for kids and tweens including
“Lizzie McGuire”, “That’s So Raven”, and “Kim Possible”. The programming
on Disney Channel On Demand will be updated on a monthly basis.

To accommodate the fluid schedules of family vacationers, all Disney
Channel On Demand episodes will support LodgeNet’s On-Screen Controls
feature, allowing viewers to skip forward or back, pause, or save their
place and resume viewing later.

“Parents can tell you that today’s children and young teenagers are
extremely discriminating about their entertainment,” said Petersen. “The
fresh, creative content found on the Disney Channel has built an enormous
fan base within that age group, and we will be bringing it to hotels as
summer vacations are just getting underway.”

“We are pleased to partner with LodgeNet to provide families with in-room
quality family-friendly programming,” said Albert Cheng, senior vice
president, distribution strategy and operations. “Now our viewers have the
opportunity to connect with their favorite Disney Channel programs when
they are away from home.”

With regard to financial results for the second quarter of 2004, LodgeNet
expects to report revenue of between $66.0 million and $69.0 million,
resulting in $2.5 million to $4.0 million in operating income. Operating
income exclusive of depreciation and amortization is expected to be $22.0
million to $23.5 million during the quarter. Net loss is expected to be
$(5.9) million to $(4.4) million or a loss per share of $(0.45) to $(0.34)
for the second quarter of 2004. With respect to the calendar year 2004,
LodgeNet expects to report revenue in a range from $270.0 million to
$276.0 million and operating income from $13.5 million to $16.5 million.
Operating income exclusive of depreciation and amortization is expected to
be $91.5 million to $94.5 million. Net loss is expected to be $(19.8)
million to $(14.8) million or a loss per share of $(1.51) to $(1.13) for
the full year 2004.


LodgeNet Entertainment Corporation ( ) is the
world’s largest and leading provider of interactive television systems and
broadband services to hotels, resorts and casinos throughout the United
States and Canada as well as select international markets. These services
include on- demand movies, music and music videos, Nintendo(R) video
games, Internet on television, and other interactive television services,
as well as high-speed Internet access, all designed to serve the needs of
the lodging industry and the traveling public. As the largest company in
the industry, LodgeNet provides service to more than one million rooms
including 967,000 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.

ABC Cable Networks Group develops and manages non-sports cable television
networks and television programming for its parent, The Walt Disney
Company. ABC Cable Networks Group operates the wholly-owned ABC Family,
Disney Channel, Toon Disney and SOAPnet, and manages Disney’s kids
programming ABC Television. ABC Cable Networks Group is also responsible
for managing Disney’s equity interest in cable groups Lifetime
Entertainment Services, A&E Television Networks and E! Networks.