LodgeNet Announces Completion of Offering of 2.5 Million Shares of Common Stock

SIOUX FALLS, S.D., March 22 /PRNewswire-FirstCall/ -- LodgeNet Interactive Corporation (Nasdaq: LNET) today announced that it has successfully completed its previously announced offering of 2.16 million shares of common stock, $0.01 par value.  In addition, the Company announced that Craig-Hallum Capital Group, LLC, the underwriter of the offering, exercised in full its option to purchase an additional 324,000 shares of common stock to cover over-allotments, bringing the total amount of common stock sold to 2,484,000 shares.  The sale price to the investors was $6.00 per share.  The offering was completed pursuant to LodgeNet's shelf registration statement filed on January 14, 2010.  After fees and expenses, the net proceeds will be approximately $13.7 million.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20080115/AQTU120LOGO)

Approximately $6.8 million of the net proceeds are expected to be used by the Company to significantly accelerate the deployment of its high-definition ("HD") interactive systems into select hotels signing new contract extension agreements.  The Company expects that the proceeds from the offering and additional cash from operations will enable it, over the balance of the year, to more than double the number of hotel rooms it originally planned to convert to its HD platform in 2010, increasing from approximately 50,000 to more than 110,000 rooms.  The balance of net proceeds will be used to reduce the outstanding balance of the term loan as required under its Credit Facility.

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 approximately 1.9 million hotel rooms 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.  

Special Note Regarding Forward-Looking Statement

The statements in this press release regarding anticipated HD room conversion are forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Actual results may differ materially from those stated in any forward-looking statements based on a number of factors.  For additional information concerning these and other risks and uncertainties that could affect these statements and the Company's business, see Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2009, as well as other risks and uncertainties detailed from time to time in the Company's reports on Forms 10-Q and 8-K subsequently filed from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.  The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

LodgeNet is a registered trademark of LodgeNet Interactive Corporation. All rights reserved. Other names and brands may be claimed as the property of others.

SOURCE LodgeNet Interactive Corporation

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