LodgeNet to Acquire StayOnline

Adds Industry Leading Solutions to Guest Connectivity Offerings

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. October 14, 2008

SIOUX FALLS, SD, November 15, 2006. LodgeNet Entertainment Corporation (NASDAQ:LNET), the world leader in bringing interactive television and broadband solutions to hotels throughout the United States and Canada, announced today that that it has entered into an agreement to acquire substantially all of the assets of StayOnline, Inc. for $15.0 million in cash. StayOnline, based in Atlanta, Georgia, is a leading provider of high-speed Internet access solutions focused on the lodging industry. Upon completion of the transaction, which is subject to certain closing requirements that are expected to be completed in the first quarter of 2007, LodgeNet will provide Internet access services to more than 175,000 hotel rooms nationwide, increasing its current base five fold.

"This transaction is a significant step forward in the execution of our strategy to expand our networks and integrate a broader array of solutions for our customers," said Scott C. Petersen, LodgeNet President and CEO. "Travelers want the same level and quality of Internet access they have at work and at home; and as a result, we believe hotels will increasingly want to get that guest-critical service from a financially secure company they know and trust."

"StayOnline has a solid reputation in the market for quality solutions and service," continued Petersen. "They are a preferred or approved provider for such major organizations as Marriott, Hilton, Starwood, Omni, Intercontinental, and Historic Hotels of America. We believe this transaction leverages the focus both of our organizations have on quality, combining StayOnline's engineering, installation, and 24x7 customer help desk operations with our nationwide technical service organization. This combination makes us the industry's only end-to-end, employee-based Internet solutions offering. We believe hotels will find this a unique and compelling value proposition for this critical guest connectivity service. It also presents some very interesting opportunities to integrate applications between the interactive television and IP-network platforms."

"We are very pleased to be joining forces with the LodgeNet organization," said Antonio DiMilia, President and CEO of StayOnline, Inc. "We have built a business committed to customer service and satisfaction and believe this transaction takes our vision to the next level. Adding LodgeNet's employee-based nationwide technical service organization to our HSIA offering creates a solid value proposition. The StayOnline management team and I look forward to aggressively growing this element of LodgeNet's business throughout and beyond LodgeNet's existing base of one million interactive television rooms."

"With this acquisition, LodgeNet continues to serve our lodging customers and their guests by giving them not only the most services, but also the best services," continued Petersen. "We are committed to expanding our networks and integrating new solutions for the future. As the industry's leader and innovator, we remain focused on implementing our strategic plan and will continue to seek opportunities to grow our business."