Pegasus is the Only Hotel Industry Company Selected in Forbes Magazine 200 Best Small Companies List

Pegasus Solutions, Inc. (Nasdaq: PEGS) announced that Forbes magazine selected Pegasus for inclusion in the prestigious Forbes 200 Best Small Companies list. The publication recognized a diverse group of corporations in its October 28, 2002, issue, calling the collection "a compilation of profitable, financially strong small-cap businesses." Dallas-based Pegasus Solutions, the only hotel industry-related company in the 2002 Best Small Companies ranking, is a leading worldwide provider of hotel reservation technology and services.

Forbes employed strict criteria in considering public corporations for the 200 Best Small Companies list. Companies were selected based on the following requirements:

* 12-month sales of $5 million to $600 million;
* a stock price above $5 per share;
* a five year average return on equity of at least 5%;
* a net profit margin of 5% over the last twelve months; and
* relative stock price strength relative to peers and market indexes.

Formed in 1989, Pegasus is an integral component of the evolving hotel industry, touching hundreds of thousands of reservations-related transactions every day. The company's services include: 

* central reservation systems used by more than 9,000 properties;

* third-party marketing and reservation representation services for nearly 5,000 hotels;

* electronic distribution services that connect more than 44,000 hotels to the Internet and to the global distribution systems (GDS);

* commission processing and payment services utilized by the top 10 travel agencies in the United States1 and more than 35,000 properties worldwide; and 

* the new PegasusCentral(TM) Web-based property management service.

Pegasus has grown from an office of five people in Dallas in 1989 to a staff of more than 1,500 worldwide. Pegasus has 20 offices in more than 11 countries, including regional hubs in Phoenix, London and Singapore.

In addition the 200 Best Small Companies honor from Forbes, Pegasus also was also recently named to Deloitte & Touche's Fast 500 List, which recognizes the fastest growing technology companies in Canada and the United States. The Fast 500 is based on percentage increase in operating revenues from years 1997 to 2001.