EXHIBIT 99.1
Contact: Kathy Shepard
Hilton Hotels Corporation
310-205-7676
Ann Parker
LodgeNet
605-988-1382
HILTON SELECTS LODGENET FOR
INTERACTIVE TELEVISION SERVICES
Beverly Hills, Calif., Sioux Falls, S.D., October 10, 2000 - Hilton
Hotels Corporation (NYSE: HLT), one of the world's leading hotel companies, and
LodgeNet Entertainment Corporation (NASDAQ: LNET), the leading interactive
television services provider to the lodging industry, today announced an
agreement by which LodgeNet's interactive television services will be phased
into Hilton's owned, leased and joint venture hotels in the United States. This
portfolio of hotels currently includes more than 220 properties with
approximately 70,000 rooms. This deployment of the LodgeNet interactive
television platform - enabling on-demand movies and music, Nintendo(R) 64 games,
Internet access on the television and more - will begin in the fourth quarter of
this year and will continue as existing contracts expire.
LodgeNet also becomes the preferred provider of these services for
Hilton's more than 1,600 managed and franchised hotels in the United States and
Canada. Hilton will actively market and promote the LodgeNet system to the
owners of these hotels, which represent nearly 250,000 rooms. Hilton's family of
brands includes Hilton(R), Doubletree(R), Embassy Suites(R), Hampton Inn(R),
Hampton Inn & Suites(R), Harrison Conference Centers(R), Hilton Garden Inn(R),
Homewood Suites(R) by Hilton, Red Lion Hotels & Inns(R) and Conrad
International(R). Currently, LodgeNet delivers interactive services to more than
700,000 hotel rooms in over 4,000 lodging properties in the United States and
Canada.
Additionally, Hilton and LodgeNet have formed a new broadband,
interactive media company. Utilizing the latest in interactive digital
technology, and building upon LodgeNet's interactive television platform, the
company - InnMedia LLC - will offer hotel guests new and innovative interactive
television content such as high speed internet access through the television as
well as customized hotel and guest information. Plans call for InnMedia to
promote and market its services to Hilton properties and other hospitality
companies throughout the United States and Canada using LodgeNet's nationwide
distribution network. Pursuant to the agreement, Hilton and LodgeNet will each
initially own 50 percent of InnMedia.
"Guests and customers today demand the highest quality in-room
entertainment and information services, and expect delivery in the most
creative, efficient and convenient manner possible," said Dieter H. Huckestein,
president - hotel operations, Hilton Hotels Corporation. "With LodgeNet's
state-of-the-art bundle of interactive television services, we will enhance the
experiences our millions of guests have come to expect from our hotels, and
remain ahead of the curve to enter the next generation of in-room
entertainment."
"LodgeNet is excited to partner with Hilton in this new value
proposition giving participating hotels a clear competitive advantage," said
Scott C. Petersen, president and CEO of LodgeNet Entertainment Corporation.
"Together, we are jointly creating one of the largest interactive in-room
entertainment new media offerings in the world."
-more-
<PAGE>
LodgeNet/Hilton
2-2-2-2
Pursuant to the agreement with LodgeNet for interactive television
services, Hilton was issued a warrant granting it the right to purchase up to
2.1 million shares of LodgeNet common stock over the next seven years at a price
of $20.44 per share.
The Company will hold a conference call today, Tuesday, October 10,
2000 at 10:00 a.m.ET, 9:00 a.m. CT, 7:00 a.m. PT to discuss these announcements.
The dial-in number for the call is 888-209-3787. The call is being webcast live
over the Internet by Global Crossing at the address: www.themeetingson.com, and
will be archived for one month at that site, which can be linked to through the
LodgeNet company website at: http://www.lodgenet.com.
About Hilton
Hilton Hotels Corporation is recognized internationally as a preeminent
hospitality company. The company develops, owns, manages or franchises more than
1,800 hotels, resorts and vacation ownership properties. Its portfolio includes
many of the world's best known and most highly regarded hotel brands, including
Hilton, Doubletree, Embassy Suites, Hampton Inn, Hampton Inn & Suites, Harrison
Conference Centers, Hilton Garden Inn, Homewood Suites by Hilton, Red Lion
Hotels & Inns and Conrad International. For more information on our family of
brands, please visit www.hilton.com.
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About LodgeNet
LodgeNet Entertainment Corporation (www.lodgenet.com) is a broadband,
interactive services provider which specializes in the delivery of interactive
television and Internet access services to the lodging industry throughout the
United States and Canada as well as select international markets. These services
include on-demand movies, Nintendo video games, high-speed Internet on TV,
high-speed Internet access for laptop computers and other interactive television
services designed to serve the needs of the lodging industry and the traveling
public. As one of the largest companies in the industry, LodgeNet provides
service to more than 780,000 rooms (including more than 700,000 interactive
guest pay rooms) in more than 4,900 hotel properties. More than 200 million
travelers have access to LodgeNet systems on an annual basis. LodgeNet is listed
on NASDAQ and trades under the symbol LNET.
NOTE: This press release contains "forward-looking statements" within the
meaning of federal securities law, including statements concerning business
strategies and their intended results, and similar statements concerning
anticipated future events and expectations that are not historical facts. The
forward-looking statements in this press release are subject to numerous risks
and uncertainties, including the effects of economic conditions; supply and
demand changes for hotel rooms; competitive conditions in the lodging industry;
relationships with clients and property owners; the impact of government
regulations; and the availability of capital to finance growth, which could
cause actual results to differ materially from those expressed in or implied by
the statements herein.
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