Rewards Network Inc. Declares Special Cash Dividend of $2.00 per Share

CHICAGO, IL, Oct 05 (MARKET WIRE) --
Rewards Network Inc. (NASDAQ: DINE), a leading provider of marketing
services and dining rewards programs to the restaurant industry, today
announced that its Board of Directors declared a special cash dividend of
$2.00 per share of common stock, payable on October 22, 2009 to
stockholders of record at the close of business on October 15, 2009.

"We have worked hard over the last several years modifying our business to
be more customer-focused and value-added in terms of our products and more
disciplined in terms of our operating activities, while becoming
significantly less capital intensive," said Ron Blake, President and CEO.
"The impact of this approach is evident in our profitability in the past
year, despite the challenges facing the restaurant industry. By focusing
on efficient operations and the value added by our products, we achieved
solid operating results during 2008 and the first three quarters of 2009.
These results, together with the improvements we have made in making
investments in our dining credits portfolio, have enabled us to generate a
significant amount of cash in 2009 while reducing the amount of cash we
invest in our dining credits portfolio. In addition, we remain debt-free."

"Our marketing services program has grown significantly this year, both in
terms of the number of merchants and sales," continued Mr. Blake. "We
expect to continue our dining credits purchasing policies that have
reduced the amount of capital we need to fund investments in our dining
credits portfolio and improved the return on the capital we deploy
purchasing dining credits. We have over $20 million of cash on our
balance sheet and over $20 million of liquidity available on our line of
credit. We believe a special cash dividend provides a significant return
of capital to our stockholders without compromising our ability to
continue funding dining credits purchases at an appropriate level and to
invest in the further development of our marketing services platform.
Taking these factors into account, our Board of Directors has determined
that it is in the best interest of our stockholders to declare a special
dividend of $2.00 per share."

About Rewards Network

Rewards Network (NASDAQ: DINE), headquartered in Chicago, IL, operates the
leading dining rewards programs in North America. Thousands of restaurants
and other merchants benefit from the company's restaurant marketing
efforts that include millions of email impressions, mobile access to
restaurants via iPhone(TM) and BlackBerry(R) smartphones and dining Web
sites. Rewards Network also provides restaurant ratings and other
restaurant business intelligence, as well as access to capital to
restaurants in our program. In conjunction with major airline frequent
flyer programs and other affinity organizations, Rewards Network provides
more than three million members with incentives to dine at participating
restaurants. These incentives include airline miles, college savings
rewards, reward program points and Cashback Rewards(SM) savings. For
additional information about Rewards Network, visit RewardsNetwork.com or
call (866) 539-9792.

Safe Harbor Statement

Statements in this release that are not strictly historical are
"forward-looking" statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectation or beliefs, and
are subject to risks, trends and uncertainties. Actual results,
performance or achievements may differ materially from those expressed or
implied by the statements herein due to factors that include, but are not
limited to, the following: (i) the impact of the economy on dining
activity, (ii) the Company's inability to attract and retain merchants,
(iii) the Company's susceptibility to restaurant credit risk and the risk
that its allowance for losses related to restaurant credit risk in
connection with dining credits may prove inadequate, (iv) the Company's
dependence upon its relationships with payment card issuers, transaction
processors, presenters and aggregators, (v) a security breach that
results in a payment card issuer re-issuing a significant number of
registered payment cards, (vi) changes to payment card association rules
and practices, (vii) the Company's dependence on its relationships with
airlines and other reward program partners for a significant number of
members, (viii) the concentration of a significant amount of the
Company's rewards currency in one industry group, the airline industry,
(ix) adverse weather conditions affecting dining activity, (x) the
Company's minimum purchase obligations and performance requirements, (xi)
the Company's inability to attract and retain active members, (xii)
factors causing our operating results to fluctuate over time, (xiii) the
Company's ability to obtain sufficient cash to operate its business,
(xiv) changes in the Company's programs that affect the rate of rewards,
(xv) the Company's inability to maintain an adequately-staffed sales
force, (xvi) the Company's inability to maintain an appropriate balance
between the number of members and the number of participating merchants
in each market, (xvii) network interruptions, processing interruptions or
processing errors, (xviii) susceptibility to a changing regulatory
environment, (xix) increased operating costs or loss of members due to
privacy concerns of the Company's program partners, payment card
processors and the public, (xx) the failure of the Company's security
measures, (xxi) the loss of key personnel, (xxii) increasing competition,
and (xxiii) a shift toward Marketing Services Program that may cause
revenues to decline. A more detailed description of the factors that,
among others, should be considered in evaluating our outlook can be found
in the Company's annual report on Form 10-K for the year ended December
31, 2008 filed with the Securities and Exchange Commission. The Company
undertakes no obligation to, and expressly disclaims any such obligation
to, update or revise any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events,
changes to future results over time or otherwise, except as required by
law.

CONTACT:
Christopher Locke
Chief Financial Officer
Rewards Network Inc.
(312) 521-6741

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