Hotel Online  Special Report


LG Electronics And LodgeNet Develop First HDTV Satellite Programming Solution For Hotels 
DALLAS TX - June 22, 2004 – LG Electronics, Inc. and LodgeNet Entertainment Corporation (NASDAQ: LNET) are bringing satellite-sourced programming in high-definition television (HDTV) to hotel guests for the first time. The end-to-end solution delivers high-definition digital video to the guest room television from both the satellite dish and the off-air antenna. 

Announced at the Hospitality Industry Technology Exposition and Conference here today, the new system is based on an LG-developed off-air platform that transcodes satellite-delivered HDTV channels (such as HDNet, HBO-HD, Showtime HD, ESPN HD and Discovery HD Theater) for delivery to hotel rooms. 

The signals, which will be encrypted to provide digital content protection, take advantage of the industry-standard digital television reception technology that will be built into virtually all TVs over the next three years in accordance with Federal Communications Commission (FCC) regulations.

“This system builds on our first-generation, standards-based off-air HDTV solution that today is providing guests a vastly sharper picture and smoother video compared to analog and digital SDTV (standard-definition television) signals,” said David Bankers, senior vice president, Product & Technology Development for LodgeNet, one of the world’s largest providers of interactive television systems and broadband services to the lodging industry.

Now, guests will be able to enjoy HDTV’s quantum leap in picture quality, video performance, and audio with available broadcast and satellite network programming. All satellite and off-air HD content is seamlessly integrated with LodgeNet’s 

David Bankers
SVP Product & Technology Development
LodgeNet Entertainment Corporation
SIGNETURE TV system (delivering digital on-demand movies, music, TV programming and games) – so guests can enjoy easy access to everything with a single remote control.

This is made possible by the companies’ industry-first HDTV solution, which uses the LG transcoder to convert both satellite- and broadcast-delivered digital TV signals for delivery through the hotel’s coaxial cable to an industry-standard receiver in the guest room. 

The set-top box integrates ATSC digital HDTV, traditional analog (NTSC) programming signals and now satellite HDTV signals, along with digital content protection and the interactive functionality of LodgeNet’s video-on-demand system card. This solution represents an additional product breakthrough for LodgeNet’s interactive television systems, which use a specialized satellite distribution network and digital platform to bring on-demand entertainment to more than 435,000 hotel rooms today. 

“With more than 1,200 TV stations broadcasting digitally and reaching more than 99 percent of American viewers, the market for HDTV is exploding,” said Richard Lewis, senior vice president, LG Electronics USA, Inc. “A huge amount of compelling HDTV content also is available via satellite.” 

“Until now, however, no one has delivered the technology necessary for travelers to enjoy broadcast and satellite HDTV content in hotel rooms across North America,” he said. “This technology opens a whole new world of high-value guest services, which are particularly compelling on the large flat panel displays that are starting to be deployed in more and more high end properties.” First installations of the new system are expected late this year when satellite provider agreements are finalized.

About LodgeNet

LodgeNet Entertainment Corporation ( is one of the world’s largest providers of interactive television systems and broadband services to hotels, including resort and casino hotels, throughout the United States and Canada as well as select international markets. These services include on-demand movies, music and music videos, Nintendo® video games, Internet on television, and other interactive television services, as well as high-speed Internet access, all designed to serve the needs of the lodging industry and the traveling public. LodgeNet provides service to more than one million rooms, including 967,000 interactive guest pay rooms in more than 5,800 hotel properties worldwide. LodgeNet estimates that during 2003 more than 260 million travelers had access to LodgeNet’s interactive television systems. LodgeNet is listed on NASDAQ and trades under the symbol LNET.

Forward Looking Statements

Certain statements in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  When used in this press release, words such as “expect”, “anticipate”, “estimate”, “believe”, “no assurance”, “intend”, “should”, “could”, “may”, “plan”, “project”, “predict”, and similar expressions and statements which are made in the future tense, or which refer to future events or developments, are intended to identify such forward-looking statements.  These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.

Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others, the following factors: general economic and business conditions, and trends in the lodging and entertainment industries in particular; changes in hotel occupancy rates, business and leisure travel rates and the “buy rate” of our customers; our ability to access popular content on terms that are acceptable to us; timely availability of content; changes to the competition , including the ability of our competitors to deliver on demand entertainment or competitive services through the Internet or cable; the impact of changes in regulation which may limit our ability to provide content we currently provide; the occurrence of one or more future terrorist attacks, wars, public health concerns or other crises; availability of key components and services necessary for the manufacture and assembly of our interactive systems; uncertainties in our strategies or efforts to improve operating results by increasing revenue and decreasing costs; availability of capital on terms that are acceptable to us and sufficient to execute our business plan, including expanding the installation of our digital system in our customers’ guest rooms, and to adapt to technological changes in our industry; changes in customer relationships with hotel chains and their franchisees, including our ability to obtain new customers and to retain existing customers; the results of our product development difficulties and delays of new technologies and enhancement of existing technologies.

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.

Service Marks & Trademarks  

LodgeNet is a registered trademark of LodgeNet Entertainment Corporation. Other names and brands may be claimed as the property of others. 



LodgeNet Entertainment Corporation
Ann Parker, Director of Corp. Communications
3900 W Innovation Street
Sioux Falls, SD  57107-7002

Also See: Lodgenet Announces Major Milestones; More Than One Million Rooms Served Overall, Nearly Half Of Company's Interactive Room Base Now Digital, On-Screen Controls Enhancing Entertainment In 435,000 Guest Rooms, Digital Control Rights Secured From All Major Studios / June 2004
Doubletree Novi Doubles In-Room Entertainment Revenue, Enhances Guest Service With Interactive TV Upgrade / May 2004
IT Security: Pebble Beach Company Powers Toward a Perfect 10; Parent Company Of Three-Time Conde Naste Winner Uses Advanced Security Tools For High-Speed Internet Access / April 2004

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