CHICAGO--(BUSINESS WIRE)--Dec. 22, 2006--Rewards Network Inc. (AMEX:IRN), a leading provider of marketing services and loyalty programs to the restaurant industry, today announced it has reached an agreement in principle to settle its pending class action litigation in California. The settlement agreement, if approved by the court, would resolve all claims made in Bistro Executive, Inc. et al v. Rewards Network Inc., by certain California-based restaurants participating in the Company's dining credits purchase plan from May 2000 through December 2004.

The preliminary settlement agreement provides for a claims process in which eligible class participants will be entitled to receive a combination of cash and airline miles, payable in three installments in 2007, 2008 and 2009, valued at up to $26 million to $28 million. Additionally, Rewards Network will forego collection from certain eligible class participants amounts above the cash advanced under the Company's dining credits purchase plan, and will pay administrative costs of the settlement and attorneys fees for the class.

In connection with the proposed settlement agreement, the Company expects to record a provision between $30 million and $34 million ($18 million to $21 million after-tax) during the fourth quarter of 2006 to reserve for the settlement and for settlement-related expenses.