LodgeNet Announces Pricing of Common Stock Offering

SIOUX FALLS, S.D., March 17 /PRNewswire-FirstCall/ -- LodgeNet Interactive Corporation (Nasdaq: LNET) today announced that it priced a public offering of 2.16 million shares of its common stock at a price of $6.00 per share.  Craig-Hallum Capital Group, LLC acted as underwriter for the offering.  The public offering of shares is expected to close on March 22, 2010.  After deducting fees and expenses, LodgeNet will receive approximately $11.9 million in net proceeds from the sale.  The underwriter has been granted an option to purchase up to an additional 324,000 shares to cover over-allotments, which, if exercised, will generate an additional $1.8 million of net proceeds.  

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

The Company intends to use 50% of the net proceeds from the offering to accelerate deployment of its new high-definition interactive system into select hotels; the Company is required to apply 50% of the net proceeds against its Bank Credit Facility.

The offering is being made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from the offices of Craig-Hallum Capital Group, LLC, 222 South Ninth Street, Suite 350, Minneapolis, Minnesota  55402 or by calling (612) 334-6300.  Electronic copies of the prospectus and the prospectus supplement are available on the Securities and Exchange Commission's Web site at www.sec.gov.

This press release does not constitute an offer to sell these securities or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 more than 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 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 the proposed offering and its terms, including the proposed use of proceeds, are forward-looking statements that involve risks and uncertainties, including, but not limited to, market conditions and the price and market for the securities being offered, or further weakening of economic conditions. 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.

SOURCE LodgeNet Interactive Corp.