LG Electronics and LodgeNet Develop First HDTV Satellite Programming Solution for Hot

[Gregg Lengling]

DALLAS, June 22 /PRNewswire/ -- 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 ( http://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(R) 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
http://www.lgcommercial.com .

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



SOURCE LG Electronics, Inc.
Web Site: http://www.lgcommercial.com http://www.lodgenet.com