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                                                                  EXHIBIT 99.1


FOR IMMEDIATE RELEASE                                 LODGENET ENTERTAINMENT
October 21, 1996                                      Ann Parker
                                                      (605) 330-1330

                 TCI SATELLITE ENTERTAINMENT ACQUIRES EQUITY
                     IN LODGENET'S RESIDENTIAL SUBSIDIARY
                _____________________________________________
         TCI SATELLITE INVESTS $40 MILLION IN RESNET COMMUNICATIONS

     SIOUX FALLS, SD - LodgeNet Entertainment Corp. (NASD: LNET) and TCI 
Satellite Entertainment Inc. announced today that TCI Satellite has 
purchased an equity interest in LodgeNet's residential subsidiary, ResNet 
Communications, Inc.  TCI Satellite has agreed to immediately acquire 4.99% 
of ResNet's common stock for $5.4 million. In addition, TCI Satellite will 
advance ResNet Communications, Inc. $34.6 million over the next five years, 
the proceeds of which to be used to purchase Ku-band satellite receiver 
equipment, in exchange for a note that will convert into a 36.99% equity 
interest in ResNet.  ResNet installs and operates private cable television 
systems in apartment complexes throughout the United States.

      Under the agreement, ResNet will have long-term access to TCI 
Satellite's direct broadcast satellite (DBS) signals on a nationwide basis.  
TCI Satellite will also have the option to increase its ownership in ResNet 
by an additional 13.01%, exercisable after three years in return for an 
additional cash investment based upon the then fair market value of ResNet.

      "This agreement gives us each an optimal long-term competitive 
strategy for expansion in the large multifamily residential market,"  said 
Gary Howard, President and CEO of TCI Satellite.  "By combining LodgeNet's 
proprietary B-LANsm (broadband local area network) technology with TCI 
Satellite's direct broadcast satellite network, we have a compelling 
integrated solution to offer apartment owners, operators and residents 
nationwide."
 
                                                                       -more-
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LodgeNet/TCI Satellite -2

     "Not only does this agreement validate our ResNet business plan and 
give us capital to expand into this market, ResNet's access to TCI 
Satellite's Ku-band technology also offers additional operating benefits," 
said LodgeNet President and CEO Tim C. Flynn.  "This agreement will 
significantly reduce ResNet's capital costs and increase programming options 
for our subscribers.  We can now use a smaller satellite dish and less 
expensive receiving and decoding equipment and have access to a larger 
variety of programming on a single transponder as compared to traditional 
C-band technology."

     TCI Satellite Entertainment, Inc. is the direct broadcast satellite 
subsidiary of Tele-Communications, Inc. (TCI). TCI recently announced that 
it will spin-off TCI Satellite Entertainment, Inc. to the holders of the 
company's TCI Group common stock.  When the spin-off is complete, TCI 
Satellite Entertainment's assets and operations will include TCI's interest 
in PRIMESTAR Partners, L.P and TCI's business known as PRIMESTAR By TCI, 
which markets and distributes PRIMESTAR equipment and programming for TCI.  
The spin-off is anticipated to be completed in the fourth quarter of this 
year.

     LodgeNet Entertainment Corporation is a specialized communications 
company that, through its proprietary B-LAN (broadband local area network) 
technology, provides video on-demand, network-based video games, PRIMESTAR 
digital basic and premium television systems and programming, as well as 
other interactive, multimedia entertainment and information services.  The 
Company is the second largest provider of such services to the lodging 
market and also operates ResNet Communications, a subsidiary, which provides 
similar services in multi-family residential complexes throughout the United 
States.

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