"This appointment recognizes the outstanding contribution Scott has made to LodgeNet over the past eleven years as our Company has grown from 5,000 to over 555,000 Guest Pay rooms," said Tim C. Flynn, Chairman of the Board of Directors. "He has led our Company, and in particular, our core lodging division to seventeen straight quarterly operating records since we went public in 1993."

"Based on the success of our strategic growth initiatives, LodgeNet is now poised to critically focus on driving operating profits," said Petersen. "We have more than quadrupled our guest pay room base over the past four years. Our singular goal will be to enhance shareholder value. We will leverage our critical mass of rooms by continuing to aggressively increase operating cash flow while moderating our level of capital investment.

"As Chairman of the Board, Tim will continue to provide valuable strategic input to the overall direction of the Company," said Petersen. "His entrepreneurial skill is a true asset for our Company. Under his leadership, the Company has grown to become the second largest provider of interactive entertainment and information services to the lodging industry. Tim has artfully lead the Company into the arena of advanced interactivity with innovative offerings such as on-demand movies, network-based interactive video games, Internet access and multimedia services. With this solid foundation, LodgeNet is well positioned to successfully enter the next millennium."

Mr. Petersen received his bachelor of arts degree in 1977 from Dartmouth College, graduating magna cum laude with distinction in economics. He received his juris doctorate in 1980 from Georgetown University Law Center. Prior to joining LodgeNet in 1987 as Senior Vice President of Corporate and Legal Affairs, Mr. Petersen was in private legal practice.

LodgeNet Entertainment Corporation ( http://www.lodgenet.com ) is a specialized communications company that serves more than 4,100 lodging properties in the United States and selected international markets. Through its proprietary b-LAN(SM) technology, LodgeNet delivers guest pay services including on-demand movies, in-room video games and shopping, Internet access and other interactive applications, as well as digital-quality PRIMESTAR by LodgeNet free-to-guest programming. LodgeNet is listed on Nasdaq and trades under the symbol LNET.