Exhibit 99.1

LODGENET REPORTS RESULTS FOR SECOND QUARTER 2012

— Increased Focus on Reducing Room Churn —

— Continued Expansion of HD, Envision and Mobile Room Bases —

— Operating Expenses Reduced 8% —

— Outstanding Debt Reduced by $19 Million to $329 Million —

SIOUX FALLS, SD, July 19, 2012 — LodgeNet Interactive Corporation (Nasdaq:LNET) reported quarterly revenue of $92.8 million compared to $106.6 million in the second quarter of 2011.  Operating loss(1) was $(95.5) million versus operating income of $8.2 million during last year’s second quarter.  Net loss attributable to common stockholders (1) was $(103.1) million or $(4.08) per share compared to $(4.4) million or $(0.17) per share loss during the second quarter of 2011.  Operating loss and net loss attributable to common stockholders for the second quarter of 2012 included a $94.0 million non-cash, one-time impairment charge(1) associated with certain goodwill and purchased intangibles.  Excluding such charges, operating loss would have been $(1.5) million and net loss attributable to common stockholders $(9.1) million or $(0.36) per share. Adjusted Operating Cash Flow(2) for the quarter was $19.2 million compared to $26.4 million in the second quarter of 2011.

The following financial highlights are in thousands, except per share data:

(1)       These results include our preliminary estimate for the non-cash charges pending completion of our assessment and the review by our external auditors.  We will have the final results incorporated in our Form 10-Q.

(2)       Adjusted Operating Cash Flow is a non-GAAP measure which we define as Operating Income exclusive of depreciation, amortization, share-based compensation, impairment and restructuring and reorganization expenses.

“With the industry’s largest room base, innovative multi-screen solutions, and national reach LodgeNet has a solid competitive position,” said Phillip Spencer, LodgeNet’s interim President and CEO.  “However, we face a number of challenges in regard to our Guest Entertainment performance and room churn, both of which continue to impact the company’s financial performance.  Room loss is a key focus for all of our employees, as it directly impacts our results and our ability to sell additional value-added services.  We are working as quickly as possible to stabilize our room base and improve our revenue performance.  There are many operational and cultural changes underway at LodgeNet.  We have already implemented increased customer satisfaction programs, we are focused on improving our customer service with “One Call Resolution,” we are simplifying our contracting process and reducing the time between order and installation.  In addition, a full review of our programming packages and prices is currently underway.  We are committed to offering a price competitive product with a high level of service.  We believe all of these steps will help transform LodgeNet back into a nimble competitor, intent on winning every contract and once again growing our room base.”

“Results in the quarter primarily reflect a $94 million non-cash charge for the impairment of Goodwill and Purchased Intangibles,” said LodgeNet Senior Vice President and CFO Frank P. Elsenbast.  “The charge relates primarily to the Goodwill and Purchase Intangibles created in 2007 at the time of the On Command acquisition.  While these charges had a significant impact on our Net Income for the quarter, it is important to note that these were non-cash charges and in no way impact our ability to operate our business on a going-forward basis.  We continue to prudently manage our operations and delivered a 8% reduction in cash Operating Expenses in the quarter.  We generated Free Cash Flow of nearly $18 million in the quarter after funding $11 million dollars of capital investment as we installed 15,000 HD rooms.  In addition, we reduced our outstanding debt by $19 million to $329 million.”

During the quarter, the Company made continued progress on certain strategic initiatives.  The LodgeNet Mobile App footprint was expanded and now reaches over 600,000 rooms.  App functionality was further expanded with the recent introduction of an Interactive Program Guide (IPG) feature that allows guests to view detailed channel programming information on their mobile device.  The successful rollout of the LodgeNet Mobile App was recognized by the Web Marketing Association as the winner of the 2012 Best Hotel and Lodging Mobile Application. In addition, LodgeNet increased its Envision footprint with the addition of 18,000 contracted rooms, bringing the total rooms under contract to 88,000.  And finally, LodgeNet continues to expand its market share within the very attractive hospitality gaming market.  The Company recently signed on eight new properties representing 6,000 new rooms.

“Our renewed commitment to churn reduction and Guest Entertainment stabilization will be critical to our future success,” continued Spencer.  “I believe we will make progress on these initiatives and see a stabilization of our financial performance which will allow us to accelerate the development of our growth opportunities.  We are committed to further diversifying our revenue, controlling our cost structure and improving free cash flow.”

RESULTS FROM OPERATIONS

THREE MONTHS ENDED JUNE 30, 2012 VERSUS

THREE MONTHS ENDED JUNE 30, 2011

Total revenue for the second quarter of 2012 was $92.8 million, a $13.9 million or 13.0% decline compared to the same period of 2011.  The decline in revenue was attributable in part to a decrease in the number of rooms receiving our services, which contributed to declines in Guest Entertainment and Television Programming revenue.  Revenue from system sales and Professional Services work increased $2.7 million or 26.6% quarter over quarter.  On a per-room basis, total Hospitality and Advertising Services revenue was 1.4% less than last year’s second quarter.  Revenue per room generated from non-Guest Entertainment services increased 13.5% period over period.

Guest Entertainment revenue decreased $13.8 million, or 24.3%, due to a 12.2% reduction in the average number of Guest Entertainment rooms served and a 13.4% decline in revenue per room from Hollywood and non-theatrical movies.  Hotel Services revenue was $32.2 million in the second quarter, a decline of 5.8% versus the prior year quarter, primarily because of a 9.6% decline in the number of rooms receiving TV Programming services.  Revenue per room for Hotel Services increased by 7.0% versus last year, driven primarily from an increase in the number of rooms receiving HD service and the expiration of contracts with unfavorable terms.  System Sales and Related Services revenue per room improved 44.5%, driven primarily by TV programming system sales and professional services work.  Our advertising services subsidiary generated revenue of $1.4 million, an expected decrease of 36.1% compared to the second quarter of 2011, as we

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continue the transition of our advertising platform from an analog platform to our expanded, all HD platform.  Additionally, our Healthcare subsidiary generated $3.2 million of revenue during the second quarter.

Total direct costs (exclusive of operating expenses and depreciation and amortization discussed separately below) decreased $5.0 million or 8.3%, to $55.1 million in the second quarter of 2012 as compared to $60.1 million in the second quarter of 2011.  Direct costs declined primarily due to lower sales volume in Guest Entertainment and Hotel Services, resulting in lower hotel commissions, royalties and programming fees.  Advertising Services fixed costs were lower due to the transition to our new advertising platform.

System Operations and Selling, General and Administrative (“SG&A”) expenses decreased $1.6 million or 7.6%, to $19.0 million in the second quarter of 2012 as compared to $20.6 million in the second quarter of 2011.  Factors driving the improvement period over period included reductions in system repair costs, professional services and content distribution costs, as well as from our expense reduction initiatives, which included the reduction of select personnel, other payroll related expenses and facilities.  Depreciation and Amortization expenses increased to $18.0 million in the second quarter of 2012 as compared to $17.8 million in the second quarter of 2011.

As part of the 2007 acquisitions of On Command and StayOnline, Goodwill and Intangible assets were created.  During the second quarter of 2012, we concluded that recent declines in revenue and profits in our Hospitality business have impacted the recovery of our goodwill.  The recent declines in Guest Entertainment revenue, our room base and our market capitalization triggered an assessment of the recoverability of goodwill on an interim basis.  As a result of our preliminary analysis, we have recorded a non-cash asset impairment charge in our Hospitality segment of $92.6 million related to goodwill.  In addition, we have recorded a $1.4 million non-cash asset impairment charge in our Hospitality segment related to intangible assets associated with our Broadband services. These asset impairment amounts are preliminary and pending completion of our assessment and the review by our external auditors.  Our final results for the quarter will be included in our Form 10-Q.

As a result of factors described above, preliminary operating loss was $(95.5) million in the second quarter of 2012 as compared to operating income of $8.2 million in the second quarter of 2011.  Adjusted Operating Cash Flow (“AOCF”), a non-GAAP measure, was $19.2 million for the second quarter of 2012 as compared to $26.4 million in the second quarter of 2011.  As a percent of revenue, AOCF margin was 20.7% this quarter versus 24.8% for the prior year quarter.

Interest expense decreased $5.1 million or 46.3% to $5.9 million in the second quarter of 2012 versus $11.0 million in the second quarter of 2011.  Our outstanding debt decreased $39.2 million or 10.7%, to $328.8 million compared to $368.0 million at the end of the second quarter of 2011.  The average interest rate for the second quarter of 2012 was 6.6% versus 12.0% last year.  The decline in interest expense and rate was a result of the final quarterly payment on our interest rate swap agreements during the second quarter of 2011.  The interest rate swap agreements expired in June 2011.

On a preliminary basis, net loss attributable to common stockholders was $(103.1) million for the second quarter of 2012, compared to a net loss of $(4.4) million in the prior year quarter.  Preliminary net loss per share attributable to common stockholders was $(4.08) for the second quarter of 2012 (basic and diluted) versus a net loss per share of $(0.17) in the second quarter of 2011 (basic and diluted).  Excluding the $94 million non cash, one-time impairment charge this quarter, net loss attributable to common stockholders would have been $(9.1) million or $(0.36) per share.

For the second quarter of 2012, cash provided by operating activities was $28.6 million as compared to $8.4 million in the second quarter of 2011.  Cash used for capital investments was $10.9 million during the second quarter of 2012 compared to $6.0 million in the second quarter of 2011.  During the quarter, the Company installed 15,344 High Definition interactive rooms along with 8,633 standard digital rooms, as compared to 12,250 rooms and 842 standard digital during the second quarter of 2011.  Quarter over quarter, the average capital per High Definition room installed was $143 per room this quarter versus $140 per room last year.

Outlook

LodgeNet’s focus over the next twelve months will be addressing room churn and leveling Guest Entertainment revenue.  As the Company addresses these two challenges and the impact they continue to have on the business, as well as the market uncertainties that the Company has been experiencing, the Company has decided to withdraw its financial guidance for 2012.

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The Company will host a teleconference to discuss its results July 19, 2012, at 5:00 P.M. Eastern Time.  A live webcast of the teleconference will also be available and can be accessed on the LodgeNet website at www.lodgenet.com.  The webcast will be archived on the LodgeNet website for one month.  Additionally, the Company has posted slides at its website under the For Investors, Company Presentations section, which will be referenced during the conference call.

Special Note Regarding the Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we use Adjusted Operating Cash Flow, Free Cash Flow and Net Debt, which are non-GAAP measures derived from results based on GAAP.  The presentation of this additional information is not meant to be considered superior to, in isolation of, or as a substitute for, results prepared in accordance with GAAP.  Adjusted Operating Cash Flow is a non-GAAP measure which we define as operating income (loss) exclusive of depreciation, amortization, share-based compensation, impairment, restructuring and reorganization expenses and debt issuance costs.  Free Cash Flow, a non-GAAP measure, is defined by the Company as cash provided by operating activities less cash used for investing activities.  Net Debt is our total outstanding debt less our cash.  These non-GAAP measures are key liquidity indicators but should not be construed as an alternative to GAAP measures or as a measure of our profitability or performance.  We provide information about these measures because we believe it is a useful way for us, and our investors, to measure our ability to satisfy cash needs, including one-time charges such as restructuring, reorganization or integration, interest payments on our debt, taxes and capital expenditures.  In addition, Net Debt provides an indication of our ability to remain in compliance with financial covenants.  Our method of computing these measures may not be comparable to other similarly titled measures of other companies.

About LodgeNet

LodgeNet Interactive Corporation is the leading provider of interactive media and connectivity services to hospitality and healthcare businesses and the consumers they serve. LodgeNet Interactive serves approximately 1.6 million hotel rooms worldwide in addition to healthcare facilities throughout the United States. The Company’s services include: Interactive Television, Broadband, Mobile and Advertising Media Solutions along with nationwide technical and professional support services. LodgeNet Interactive Corporation owns and operates businesses under the industry leading brands: LodgeNet, The Hotel Networks and LodgeNet Healthcare. LodgeNet Interactive is listed on NASDAQ and trades under the symbol LNET. For more information, please visit www.lodgenet.com.

Special Note Regarding Forward-Looking Statement —

Certain statements in this press release constitute “forward-looking statements.”  Such forward-looking statements are subject to risks, uncertainties and other factors that could cause the 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: uncertainties relating to our ability to reduce room churn and stabilize revenues; the effects of economic conditions, including general financial conditions; the economic condition of the lodging industry, which can be particularly affected the financial conditions referenced above, as well as by high gas prices, levels of unemployment, consumer confidence, acts or threats of terrorism and public health issues; competition from providers of similar services and from alternative systems for accessing in-room entertainment; competition from HSIA providers; changes in demand for our products and services; programming availability, timeliness, quality and costs; technological developments by competitors; developmental costs, difficulties and delays; relationships with customers and property owners, in particular as we reduce capital investment; the availability of capital to finance growth; compliance with credit facility covenants; the impact of governmental regulations; potential effects of litigation; risks of diversification into new products, services, or markets; risks related to the security of our data systems; and other factors detailed, from time to time, in our filings with the Securities and Exchange Commission. For any of the foregoing reasons, our guidance and our actual financial results may not meet our expectations.  These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

LodgeNet, the LodgeNet logo, Envision and PowerPortal are trademarks or registered trademarks of LodgeNet Interactive Corporation. All rights reserved. Other names and brands may be claimed as the property of others.

(See attached financial and operational tables)

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LodgeNet Interactive Corporation and Subsidiaries

Consolidated Balance Sheets

(Dollar amounts in thousands, except share data)

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LodgeNet Interactive Corporation and Subsidiaries

Consolidated Statements of Operations (Preliminary & Unaudited)

(Dollar amounts in thousands, except share data)

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LodgeNet Interactive Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Preliminary & Unaudited)

(Dollar amounts in thousands)

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LodgeNet Interactive Corporation and Subsidiaries

Supplemental Data

(1) Total rooms served represents rooms receiving one or more of our services including rooms served by international licensees.

(2) Guest Entertainment rooms, of which 93% are digital, receive one or more Guest Entertainment Services such as movies, video games, music or other interactive services.

(3) HD rooms are equipped with high-definition capabilities.

(4) Guest Entertainment rooms installed with our Envision Interactive platform.

(5) Guest Entertainment rooms compatible with the LodgeNet Mobile App.

(6) Television programming (FTG) rooms receiving basic or premium television programming.

(7) Adjusted Operating Cash Flow is a non-GAAP measure which we define as Income (Loss) From Operations exclusive of depreciation, amortization, share-based compensation, impairment and restructuring and reorganization expenses.

(8) These results include our preliminary estimate for the non-cash charges pending the completion of assessment with our independent auditors. We will have the final results incorporated in our 10Q.

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