Exhibit 99.1

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FOR IMMEDIATE RELEASE	CONTACTS:
	Kenneth R. Posner Chief Financial Officer Rewards Network Inc. (312) 521-6790 Allan Jordan/Margot Olcay The Global Consulting Group (646) 284-9400

REWARDS NETWORK INC. ANNOUNCES EARNINGS FOR

THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2003

Chicago, IL January 29, 2004—Rewards Network Inc., (AMEX: IRN) one of the nation’s leading providers of loyalty and rewards programs, today released its financial results for the fourth quarter and year ended December 31, 2003.

For the three-month period ended December 31, 2003, total operating revenue amounted to $25.9 million, an increase of 13.1% compared with $22.9 million in the same period last year. Sales for the quarter amounted to $89.2 million, representing an increase of 4.3% over the corresponding prior year sales of $85.5 million. The Company closed the quarter with 3.4 million active members and approximately 17,800 total participating merchants.

In the current three-month period, the Company recorded income before income taxes of $6.9 million versus $5.5 million in the same period last year. Net income for the three months ended December 31, 2003 was $3.9 million (or 15 cents per share based on fully diluted average outstanding common shares of 26.4 million). Net income for the three-month period ended December 31, 2002 was $4.7 million (or 20 cents per share based on fully diluted average outstanding common shares of 23.8 million). The 2003 fourth quarter earnings reflect the Company’s current fully taxable status whereas the fourth quarter of 2002 includes a significantly lower effective tax rate due to utilization of net operating loss carry forwards. Assuming a fully taxable position and statutory tax rates, net income for the fourth quarter of 2002 would have been $3.4 million (or 14 cents per share).

For the year ended December 31, 2003, total operating revenue amounted to $97.8 million, an increase of 21.9% compared with $80.2 million in the prior year. Sales for

the year amounted to a record $349.0 million, representing an increase of 20.7% over the prior year sales of $289.1 million.

For the year ended December 31, 2003, the Company recorded net income of $15.7 million (or 62 cents per share based on fully diluted average outstanding common shares of 25.5 million). Net income for the year ended December 31, 2002 was $19.2 million (or 82 cents per share on fully diluted average outstanding common shares of 23.5 million). The 2002 operating results include the reversal of a deferred tax valuation reserve allowance and utilization of net operating loss carry forwards. Assuming a fully taxable position and statutory tax rates, net income for the 2002 year would have been $11.1 million (or 47 cents per share).

“We are pleased to report fourth quarter growth in sales and operating revenue consistent with the full year guidance provided at the end of the third quarter. This was accomplished without any net increase in total restaurant merchant count in the fourth quarter. Our plans include a continuing commitment to expand our sales force and significantly increase the restaurant merchant base in 2004 and beyond” said George S. Wiedemann, President and Chief Executive Officer of Rewards Network. “In the fourth quarter we significantly expanded our hotel product offering and now have a large, diverse product selection for our members to choose from. Although contribution from the hotel product offering remains small relative to our core dining business, we are optimistic about its growing acceptance by our members” continued Mr. Wiedemann. “Full year diluted earnings per share of 62 cents represents more than a 30% increase over 2002, after adjusting 2002 for income taxes at statutory rates. We are very satisfied with our results for the year.”

“Looking ahead to 2004, Rewards Network is targeting growth in total operating revenue of 13% to 18% and growth in net income of 10% to 15%. We are aggressively working to grow our merchant base through the expansion of our sales force and we will be launching new member marketing initiatives for our hotel program. We expect the results of these efforts will contribute to increased growth as 2004 progresses. Our 2004 guidance also includes investments for the geographic expansion of the dining product and the development, launch and expansion of current and new product offerings” concluded Mr. Wiedemann.

Rewards Network, headquartered in Chicago, Illinois, provides loyalty and rewards programs for restaurants and hotels via its registered credit card platform. Incentives are offered through the Rewards Network branded program, airline frequent flyer dining programs, club memberships and other affinity organizations. Rewards Network has 3.4 million active members, 10,836 restaurants and 6,937 hotels participating in its rewards programs. Rewards Network’s common stock trades on the American Stock Exchange under the symbol IRN and is listed in newspapers as REWARDS. Additional details about Rewards Network can be found at www.rewardsnetwork.com or calling Rewards Network at 1-877-491-3463.

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Statements in this release that are not strictly historical are “forward-looking” statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, which may cause the company’s actual results in the future to differ materially from expected results. These risks are qualified in their entirety by cautionary language and risk factors set forth in the company’s filings with the Securities and Exchange Commission.

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Rewards Network Inc. and Subsidiaries

(Amounts in thousands, except per share data)

(UNAUDITED)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2003			2002			2003			2002
Sales:
RTR	$	81,283		$	79,507		$	320,139		$	271,826
Non RTR		7,949			5,975			28,887			17,269
Total sales	$	89,232		$	85,482		$	349,026		$	289,095
Cost of sales		45,748			45,969			184,031			156,038
Member rewards and savings		18,569			17,747			71,873			57,956
Net revenue		24,915			21,766			93,122			75,101
Net revenue percentage		27.9	%		25.5	%		26.7	%		26.0	%
Membership and renewal income		1,000			1,131			4,552			4,962
Other operating revenue		8			42			132			178
Total operating revenues		25,923			22,939			97,806			80,241
Operating expenses:
Salaries and benefits		5,947			4,935			21,246			18,353
Sales commission and expenses		4,001			3,697			15,849			11,363
Member & merchant marketing		1,829			2,139			7,193			7,074
Printing and postage		1,366			1,777			6,136			6,142
General and administrative		4,887			4,461			18,831			17,409
Total operating expenses		18,030			17,009			69,255			60,341
Operating income		7,893			5,930			28,551			19,900
Other (income) expenses, net		1,027			433			2,371			1,993
Income before income taxes		6,866			5,497			26,180			17,907
Income tax expense (benefit)		2,945			825			10,470			(1,328	)
Net income		3,921			4,672			15,710			19,235
Net income per share
Basic EPS		0.15			0.22			0.68			1.01
Diluted EPS		0.15			0.20			0.62			0.82
Weighted average number of common and common equivalent shares outstanding
Basic		24,431			20,219			22,920			20,680
Diluted		26,381			23,838			25,478			23,494
Net income, as reported		3,921			4,672			15,710			19,235
Less:
Deferred tax valuation allowance		—			—			—			(3,676	)
Additional tax if statutory rate used		—			(1,264	)		—			(4,457	)
Net income, assuming fully taxable at statutory rate *		3,921			3,408			15,710			11,102
Diluted EPS, as reported		0.15			0.20			0.62			0.82
Less:
Deferred tax valuation allowance		—			—			—			(0.16	)
Additional tax if statutory rate used		—			(0.06	)		—			(0.19	)
Diluted EPS, assuming fully taxable at statutory rate *		0.15			0.14			0.62			0.47

* Net income and diluted EPS for the 2002 periods is calculated assuming a 38% statutory tax rate to demonstrate the impact on earnings had the company been subject to the then current statutory federal and state income tax rates.

RTR—Rights to Receive

Non–RTR—Represents sales where there was no cash advanced to the merchants.

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Rewards Network Inc. and Subsidiaries

(Amounts in thousands, except merchant and average ticket data)

(UNAUDITED)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2003			2002			2003			2002
Cash & cash equivalents								9,709			8,266
Short-term investments								10,291			1,183
Rights to Receive, net								119,233			111,962
Investments								8,395			82
Total assets								184,867			152,143
Outstanding debt								70,000			60,000
Stockholder equity								73,647			52,401
Net cash provided by (used in):
Operations		5,834			259			11,876			(5,383	)
Investing		(16,425	)		(673	)		(22,931	)		(5,303	)
Financing		7,593			5,158			12,499			4,995
Other information:
Accounts active last 12-months								3,417			2,472
Merchants in program, end of period:
Restaurants								10,836			9,681
Hotels								6,937			—
Total Restaurants and Hotels								17,773			9,681
Dining:
Number of transactions during period		2,750			2,349			10,466			7,885
Average ticket in dollars		$50.46			$53.47			$50.51			$52.46
Gross qualified member spend	$	138,761		$	125,593		$	528,640		$	413,605
Sales yield		64.3	%		68.1	%		66.0	%		69.9	%

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