Pegasus Solutions Adds 2,100 Independent and Small Chain Hotels to its Travel Agent Commission Processing Service

Growth Reflects Pegasus’ Strategy to Cross-Sell Services with

Its Recently Acquired Hotel Rep Brands:

Utell, Sterling Hotels & Resorts, Summit Hotels & Resorts, and Golden Tulip Worldwide

Pegasus Solutions, Inc. (Nasdaq: PEGS) today announced it has added more than 2,100 independent and small chain hotels in 91 countries to its travel agent commission processing service. The significant expansion is the result of Utell, Sterling Hotels & Resorts, Summit Hotels & Resorts and Golden Tulip Worldwide member hotels joining the Pegasus Commission Processing service, the hotel industry’s leading travel agent commission processing service. These hotel brands were acquired by Dallas-based Pegasus Solutions through its acquisition of REZsolutions, which was completed on April 3, 2000. Pegasus Solutions is the leading provider of hotel industry transaction processing solutions and electronic commerce services.

According to John F. Davis III, president and chief executive officer of Pegasus Solutions, the new hotel additions to Pegasus Commission Processing are the result of Pegasus effectively executing its strategy to cross-sell services within its new global organization. “Since Pegasus Commission Processing was established nearly a decade ago, we’ve done an excellent job of penetrating the North American market and have secured Pegasus Commission Processing’s position as the market leader. Our recent acquisition of several global hotel brands and services has parlayed into immediate growth for us and created an opportune time to strengthen our efforts on international fronts,” Davis said.

On a monthly basis, Pegasus collects from its member hotels actual guest stay information related to hotel bookings made by travel agents. After consolidating the hotels’ information and commission payments with that of other Pegasus participating hotels, Pegasus sends a consolidated commission payment to its member travel agencies worldwide. The travel agencies that subscribe to Pegasus’ service also receive detailed reporting of actual guest stays, cancellations and “no shows” and can elect to receive total automated commission management through Pegasus’ reconciliation and tracking service.

“Travel agents worldwide will truly benefit from the addition of these prime hotels to the Pegasus Commission Processing service. Instead of receiving numerous checks in a variety of currencies from these particular hotels, Pegasus’ subscribing travel agencies who book member properties will receive one consolidated payment in their preferred currency once a month,” said Jeff Bzdawka, senior vice president of Pegasus Commission Processing.

Bzdawka also added that Pegasus is planning several initiatives to engage additional Utell, Sterling, Summit and Golden Tulip member hotels’ participation, including the unveiling of a new Web-enabled service that will make paying travel agent commissions even easier, particularly for independent hotels.

Pegasus Commission Processing is a hotel commission processing service that Dallas-based Pegasus Solutions established in 1992. Nearly 100,000 travel agency locations in 207 countries, including eight of the top 10 U.S. travel agencies1, rely on Pegasus for the collection, processing and consolidation of commission payments due them from hotels. In total, more than 90 hotel chains participate, representing more than 31,000 contracted properties in more than 159 countries. Monthly, Pegasus processes more than US$34 million in hotel commissions.