LodgeNet Interactive to Present at The B. Riley Investor Conference

To Discuss Progress With Strategic Initiatives and Focus on Delivering on 2008
Free Cash Flow Target

SIOUX FALLS, S.D., March 31 /PRNewswire-FirstCall/ -- LodgeNet Interactive
Corporation (Nasdaq: LNET), the leading provider of media and connectivity
solutions to hospitality and healthcare businesses, announced today that it
will present at the B. Riley Investor Conference at The Palms Hotel in Las
Vegas on Wednesday, April 2. The Company will discuss its progress in
creating and driving its strategic revenue initiatives related to high-
definition television, broadband Internet, advertising media and professional
solutions. It will also comment on its focus on delivering its targeted $25
to $35 million of adjusted free cash flow for 2008, which equates to
approximately $1.09 to $1.52 per share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080115/AQTU120LOGO )
"Following our strategic acquisitions in 2007 in the areas of interactive
television, broadband Internet and advertising media, we now offer our
customers an expanded suite of services and solutions that connect, inform and
entertain guests and patients," said Scott C. Petersen, LodgeNet President &
CEO. "This strategic transformation places us in a unique position to broaden
our customer relationships and drive meaningful new revenues and cash flows
over the next several years. As a result, we are expanding and diversifying
the revenue we earn from our hospitality platform, which serves more than
9,900 hotels and 1.9 million hotel rooms throughout the United States, Canada
and Mexico."
"As a result of our initiatives, total revenue calculated on a monthly
per-room basis will be greater in the first quarter of this year versus that
reported for the first quarter of 2007," said Gary H. Ritondaro, LodgeNet's
Chief Financial Officer. "The percentage change in monthly per-room movie
revenue during the quarter was at the midpoint of our annual guidance range,
yet total revenue will increase because we are generating expanded revenues
from hotel services, advertising and other sales as compared to a year ago."
"At the same time, we are committed to delivering meaningful and
increasing levels of cash flow for our shareholders," continued Petersen.
"Given the current economic environment, we are managing our business and
moderating our operating costs and capital investment plans to strike a
prudent balance between our numerous investment opportunities and our goal of
delivering on our previously issued guidance for adjusted free cash flow for
2008. We are continuing to pursue our programs to drive down the capital costs
associated with adding and upgrading high-definition television rooms and to
grow our new business lines that generate incremental cash flow yet require
minimal capital investment on our part."
LodgeNet management is scheduled to present Wednesday, April 2, at 9:00am.
A live webcast of the presentation and a copy of the slides will be available
on the investor section of the Company's website, located at
http://www.lodgenet.com, following the presentation.
For the year 2008, LodgeNet continues to expect to report revenue in the
range of $570.0 million to $585.0 million and Adjusted Operating Cash Flow* in
a range from $150.0 million to $160.0 million. As previously announced, net
loss is expected to be $(28.0) million to $(18.0) million, or loss per share
of $(1.22) to $(0.78). Adjusted Net Loss** is expected to be $(14.0) million
to $(4.0) million or $(0.61) to $(0.17) per share. Free Cash Flow*** is
expected to be in a range of $17.0 million to $27.0 million and Adjusted Net
Free Cash Flow**** is expected to be $25.0 million to $35.0 million, or
approximately $1.09 to $1.52 per share.
* Adjusted Operating Cash Flow is a non-GAAP measure which we define as
Operating Income exclusive of depreciation, amortization, share-based
compensation and restructuring and integration expenses.
** Adjusted Net Income (Loss) excludes amortization of purchased
intangibles, debt refinancing charges and restructuring and integration
expenses.
*** Free Cash Flow, a non-GAAP measure, is defined by the Company as cash
provided by operating activities less cash used for investing activities,
including growth related capital.
**** Adjusted Free Cash Flow, a non-GAAP measure, is defined as free cash
flow, as defined above, and further excludes cash used for restructuring and
integration activities.
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 representing 9,900 hotel properties 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 http://www.lodgenet.com .
Special Note Regarding Forward-Looking Statement
Certain statements in this press release constitute "forward-looking
statements". When used in this press release, the words "intends," "expects,"
"anticipates," "estimates," "believes," "goal," "no assurance" and similar
expressions, and statements which are made in the future tense or refer to
future events or developments, including, without limitation, those related to
revenue, net loss, adjusted net loss, adjusted operating cash flow, capital
investment, free cash flow and each of the components thereof, are intended to
identify such forward-looking statements. Such forward-looking statements are
subject to risks, uncertainties, and other factors that could cause the actual
results, performance or achievements to be materially different from any
future results, performance, or achievements expressed or implied by such
forward-looking statements. In addition to the risks and uncertainties
discussed herein, such factors include, among others, the following: the
effects of economic conditions, including in particular the economic condition
of the lodging industry, which can be particularly affected by international
crisis, acts or threats of terrorism and public health issues; competition
from providers of similar services and from alternative systems for accessing
in-room entertainment; competition from broadband providers; changes in demand
for our products and services; programming costs, availability, timeliness,
and quality; technological developments by competitors; developmental costs,
difficulties, and delays; relationships with clients and property owners; the
availability of capital to finance growth, the impact of government
regulations; potential effects of litigation; risks of expansion into new
markets; risks related to the security of our data systems; and other factors
detailed, from time to time, in our filings with the Securities and Exchange
Commission. With respect to any acquisition, we are subject to risks that
integration costs will exceed expectations, that synergies we anticipate will
not be realized, or will take longer than anticipated to realize, that our
management and management systems will encounter difficulties in dealing with
a bigger, more diversified enterprise, and that the financial results we
expect from the acquisition will not be realized. These forward-looking
statements speak only as of the date of this press release. We expressly
disclaim any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect any
change in our expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
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

Ann Parker, Director Investor Relations of LodgeNet Interactive Corporation,
+1-605-988-1000, ann.parker@lodgenet.com; or Mike Smargiassi of Brainerd
Communicators for LodgeNet Interactive Corporation, +1-212-986-6667,
smarg@braincomm.com