LodgeNet Launches Direct-Response Advertising Into Interactive Television Room Base

LodgeNet inserts banner ads on the interactive television menus that guests use to browse and order on-demand movies, Nintendo® video games, Internet on TV and other LodgeNet services. Viewers use the remote control to select banners and view product information, and are able to respond to promotional opportunities by entering their e-mail address. The ads - for financial, consumer and Internet companies - currently appear in more than 150,000 guest rooms.

"This exciting new service represents another milestone in our strategic business plan to increase the fundamental value of LodgeNet by leveraging our installed interactive room base to tap into new revenue streams," said Scott C. Petersen, president and CEO for LodgeNet. "Third-party advertising meshes perfectly with our interactive system capabilities and represents a natural 'next step' in our strategic business plan. From the response we've seen to date, we anticipate rolling this service out to our entire room base."

"This medium represents a powerful marketing tool for advertisers to gain exposure to the millions of hotel guests who browse and order LodgeNet's interactive content and service offerings each year," said Steven D. Truckenmiller, vice president of Guest Pay Services for LodgeNet. "LodgeNet's interactive technology, market reach and proven guest usage patterns offer advertisers a highly desirable and targeted demographic through the guest room television - a medium used by virtually every traveler."

"Here are the facts," continued Truckenmiller. "We are generating over two million advertising impressions per week, with a substantial "click-through" rate, which means that guests are actively seeking information about the products from our advertising partners. In addition, we are seeing a direct response from six to seven percent of those guests, as they share their email addresses to correspond with the advertiser, and request more information about their products and services."

LodgeNet Entertainment Corporation (www.lodgenet.com) is a broadband, interactive services provider which specializes in the delivery of interactive television and Internet access services to the lodging industry throughout the United States, Canada and other select international markets. These services include on-demand movies, Nintendo® video games, Internet-enhanced television, high-speed Internet access and other interactive television services designed to serve the needs of the lodging industry and the traveling public. As one of the largest companies in the industry, LodgeNet provides service to more than 760,000 rooms in more than 4,900 hotel properties. More than 200 million travelers have access to LodgeNet systems on an annual basis. LodgeNet is listed on NASDAQ and trades under the symbol LNET.