LodgeNet
Interactive Corporation has announced that it will be
realigning its organization around its three key business units:
Hospitality, Healthcare and The Hotel Networks.As part of this
realignment, its operations addressing the hospitality and healthcare
markets will be organized into two divisions. The Hotel Networks, the media
marketing division, will continue to operate as a wholly-owned subsidiary
of the Company.

“As our company continues to grow and evolve, we believe we can best
enhance shareholder value by creating more tightly integrated teams with a
clear focus on driving results within the markets they serve,” said Scott
C. Petersen, Chairman and CEO of LodgeNet. “We believe we have outstanding
opportunities to create increased shareholder value within our hospitality,
healthcare and media marketing businesses, and this new organizational
structure will enhance our ability to deliver innovative new solutions to
our current and prospective customers more quickly and effectively.”

  As part of this new organizational structure, Scott E. Young has been
named President of the Hospitality division. He presently serves as Chief
Marketing Officer of the Company, a position he will retain in the new
organization. In his new role, Mr. Young will be responsible for all
aspects of the day-to-day management of the Company’s Hospitality business
division, which spans more than 1.9 million hotel rooms within 9,900 hotel
properties. Mr. Young will be charged with driving emerging growth
opportunities in Hospitality such as Broadband Solutions and Professional
Solutions, as well as managing the company’s core Interactive Media
business in Hospitality. In support of this new role, Young will now have
responsibility for the company’s Technical Operations functions, in
addition to Sales, Marketing, Programming, Product Management and Content
Licensing.

  Mr. Young joined the LodgeNet organization in August 2006 after seven
years at Best Buy Corporation, during which time he held the positions of
Vice President Entertainment, BestBuy.com; Vice President Merchandising,
Music; and Vice President of Digital Entertainment. Mr. Young received his
undergraduate degree at Yale University and has an MBA from UCLA.

  “The Hospitality Industry continues to evolve to meet growing guest
expectations for media and connectivity, and LodgeNet is positioned to be
the leader in providing these solutions now and in the future,” said Mr.
Young. “I am energized by the challenge that these opportunities represent,
and look forward to working with our team and our industry partners as we
continue our transformation, leveraging our company’s assets to build and
deliver profitable new solutions that meet the growing needs of the
industry.”

  With the creation of the Hospitality division, the Company also
announced that Steven R. Pofahl has been promoted to General Manager of
Hospitality Operations. Mr. Pofahl, who joined LodgeNet in 1998, is
presently Senior Vice President of Technical Operations. In his new role,
Mr. Pofahl will report to Mr. Young and will be responsible for all
operational aspects of the Company’s Hospitality business including
technical, media and account management.
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