LodgeNet Entertainment Corporation Deploys Espial Technology for Interactive Services for the Lodging Industry

LodgeNet selectes Espial technology for hotel Internet and service deployments.

Largest Deployment Places Espial in Dominant Position for Interactive Services in North American Hotel Rooms

OTTAWA, Canada-January 13, 2003-Espial, creator of software that powers the world of smart Internet devices, today announced that LodgeNet Entertainment Corporation (NASDAQ: LNET) is using Espial technologies in their latest deployment of interactive services for the lodging industry. LodgeNet Entertainment Corporation is the leading provider in the delivery of broadband entertainment and information services serving hotels in the U.S., Canada, and select international markets.

In the U.S., LodgeNet is the number one provider of hospitality programming serving more than 5,100 hotels. LodgeNet serves more than 900,000 hotel rooms worldwide. The deployment by LodgeNet elevates Espial as the number one software provider used to deliver interactive services to hotel rooms via TV in North America including Internet access.

"Todays hotel guests demand an Internet experience to stay connected when they are away from the home or office. Espial technology enabled LodgeNet to provide these services without a major investment in new hardware," said David Bankers, Chief Technology Officer at LodgeNet. "Espial enables us to upgrade our existing systems in an extremely short timeframe and provides an immediate return on our existing technology investments."

LodgeNet is utilizing Espial Suite for TV software to update and deploy interactive services that provide digital movies and music, video games, interactive content and Internet access. Room revenue from interactive video deployments from LodgeNet increased 15% above rooms served by existing systems.

"Providing technologies that are now being used by a majority of TV information and entertainment systems around the world is proof that Espial technology exceeds the demands required for the delivery of interactive TV services and programming," said Dr. Neale Foster, Director of Marketing, TV at Espial. "The LodgeNet deployment of Espial provides a preview of future services that will be provided by the cable industry."

Hotel and hospitality interactive television systems have provided an excellent place to refine technology for future mass market interactive TV systems. Based on successful implementations, broadcasters are ready to launch large-scale system deployments.

Forrester Research estimates that by the year 2004, interactive television will replace $18 billion of traditional advertising revenues with $24 billion in interactive-based revenues.

About Espial

With more than 90 device design wins with companies such as Intel, Motorola, On Command, Philips, Sony and Samsung, Espial has deployed proven solutions for devices relying on Internet technology. Espial software allows customers to create services, deliver devices, manage infrastructure while building revenue in a cost effective manner. Espial technology applies universally across sectors such as TV, wireless, automotive and other connected devices. Visit www.espial.com.

For further information please contact:

Craig Olson
Media Relations, Espial
+1 515 224 7641
colson@espial.com