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Press Release

06/22/2004

LG ELECTRONICS AND LODGENET DEVELOP

DALLAS, 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.

DALLAS, 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 and 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 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.

LodgeNet Entertainment Corporation (www.lodgenet.com) 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.

LG Electronics U.S.A., Inc., (LGEUS) is the North American subsidiary of LG Electronics, Inc., a global leader in consumer electronics, information technology and communications products. LGEUS is comprised of four business units: Digital Appliance, Consumer Electronics, Information Technology and Mobile Phones. In providing cutting-edge, performance-driven products for the largest digital market in the world, LGEUS's goal is to enable the intelligent networking of digital products that will make consumers' lives better than ever and deliver on its marketing promise of "LG: Life's Good." For more information on LG's commercial products, please visit www.lgcommercial.com.

CONTACTS:
LG Electronics: John Taylor (847) 941-8181, john.taylor@lge.com
LodgeNet: Ann Parker (605) 988-1000, communications@lodgenet.com

This release contains forward-looking statements within the meaning of the Securities Act of'33, as amended, and the Securities Exchange Act of'34, as amended, and are subject to risks, uncertainties, and other factors that could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: 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 movies, video games, music and other content on terms that are acceptable to us; the impact of regulations or competition on our products and services and changes to the competitive environment for our products and services, including the ability of our competitors to deliver on demand guest pay services through the Internet or cable; the occurrence of one or more future terrorist attacks, wars, public health concerns or other domestic or international crises; the ability of our suppliers to provide key components and services necessary for the manufacture and assembly of our interactive systems; uncertainties inherent in our new business strategies, such as our efforts to expand our digital system to a broader segment of our customer base; uncertainties inherent in our efforts to improve operating results by increasing revenue and decreasing costs; our ability to secure additional 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 the nature of our relationships with hotel chains and their franchisees, including our ability to obtain new customers and to retain existing customers; the outcome of any litigation; the results of our product development efforts relating to the development of new technologies and the enhancement of existing technologies; and other factors detailed, from time to time, in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's 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 Entertainment Corporation. Other names and brands may be claimed as the property of others. All rights reserved.

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