LodgeNet New

NEW ORLEANS, LA, June 24, 2003 - LodgeNet Entertainment Corporation, the world's largest provider of broadband interactive television services to the lodging industry, and Zenith Electronics Corporation, a long-time leader in digital television technologies, are demonstrating the lodging industry's first digital high-definition television (HDTV) solution for guest rooms at Booth 1202 of the HITEC show, today through Thursday, June 26.

"LodgeNet and Zenith have developed a standards-based solution that delivers HDTV programming over the hotel's existing coaxial cable network, displaying a picture quality many guests have never seen before," said David Bankers, Senior Vice President of Product and Technology for LodgeNet.

For the first time, guests in rooms with HD-capable sets will be able to enjoy the digital sound quality and eye-popping visual clarity of HDTV programming - plus standard off-air content as well as LodgeNet's digital on-demand movies, music, Internet, TV programming and games - with a single remote control. This is made possible by the companies' industry-first HDTV solution, which uses a Zenith transcoder to convert broadcast digital television signals for delivery through the hotel's cable network to a Zenith set-top box in the guest room. The set-top box integrates ATSC digital HDTV and traditional analog NTSC programming signals along with the interactive functionality of LodgeNet's video-on-demand system card. The solution represents an additional product breakthrough for LodgeNet's interactive television systems, which use a satellite distribution network and interactive digital platform to bring digital entertainment with DVD/CD functionality to more than 310,000 hotel rooms today.

"With more than 900 TV stations broadcasting digitally, reaching more than 98 percent of American viewers, momentum is building for HDTV," said Richard Lewis, Senior Vice President of Research and Technology for Zenith. "However, no one at this time is delivering the digital bandwidth necessary for travelers to enjoy true HDTV content in their hotel rooms. With this system, which opens a whole new world of high-value guest services, LodgeNet is poised to be a leader in the digital delivery of high-definition content for the lodging industry." Lewis added that his company is working to ensure continued LodgeNet system compatibility as Zenith incorporates set-top box functionality into its HDTV displays - similar to the companies' industry-first effort to integrate video-on-demand terminals into LodgeNet's TV cabinets more than a decade earlier.

According to Bankers, broadcast HDTV is the first phase of LodgeNet's HDTV "migration path" through which LodgeNet will incorporate increasing amounts of digital content delivered over its systems in compliance with ATSC (Advanced Television Systems Committee) standards. "We have seen a marked increase in hotel interest and investment in HDTV-compatible devices," said Bankers. "Until now, those investments have impacted room décor more than anything else; but by collaborating with the industry leader in ATSC-based digital TV technology, we are enabling hoteliers to thrill their guests with the ultimate entertainment experience those high-end devices were created to provide."

About LodgeNet - LodgeNet Entertainment Corporation (www.lodgenet.com) is the leading provider in the delivery of broadband, interactive services to the lodging industry, serving more hotels and guest rooms than any other provider in the world. These services include on-demand digital movies, digital music and music videos, Nintendo® video games, high-speed Internet access and other interactive television services designed to serve the needs of the lodging industry and the traveling public. As the largest company in the industry, LodgeNet provides service to 960,000 rooms (including more than 900,000 interactive guest pay rooms) in more than 5,700 hotel properties worldwide. More than 260 million travelers have access to LodgeNet systems on an annual basis. LodgeNet is listed on NASDAQ and trades under the symbol LNET.

About Zenith - Founded in 1918, Zenith Electronics Corporation (www.zenith.com) is a long-time leader in digital television technologies and inventor of the U.S. digital HDTV transmission system adopted by the Federal Communications Commission (FCC). Zenith's Emmy-award-winning technologies include digital HDTV, flat-screen CRTs, stereo television and TV remote controls. For 2003, Zenith is capitalizing on its digital HDTV leadership and on the extensive technologies and resources of its parent company, LG Electronics Inc. Zenith's corporate headquarters are in Lincolnshire, Ill. The FCC requires that virtually all television sets, including those sold as lodging guest room TVs, include ATSC digital tuners by 2007.

This release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, 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 and sigNETure TV are service marks or registered trademarks of LodgeNet Entertainment Corporation. Other names and brands may be claimed as the property of others. All rights reserved.

Contact at Zenith

John I. Taylor
VP, Public Affairs & Communications
Zenith Electronics Corporation
847-941-8181
[email protected]

Ann Parker
Director Of Corporate Communications
605/988-1000