Hilton International's Nordic Hotels are First in New Service from Pegasus Solutions to Process VAT Invoices for Travel Agent Co

Hilton International and Pegasus Solutions, Inc.
(Nasdaq:PEGS) today announced that the 130 Scandic and Hilton hotels
in the Nordic region (Denmark, Finland, Norway and Sweden) will join
Hilton International's other hotels that are already using Pegasus
commission processing services.
   Furthermore, as a new benefit to travel agents, Pegasus will
process the Value Added Tax on commissions payments and create
invoices on the agents' behalf, in a new service that should be more
efficient for travel agents and hotels. The hotel chain Scandic, owned
by Hilton International, is the leading hotel brand across the Nordic
region. Dallas-based Pegasus is a global leader in providing
technology and services to hotels and travel distributors.
   The Nordic region within Hilton is the first to provide this new
service enhancement to travel agencies. Pegasus, Scandic and Hilton
are conducting pilot tests of the service in four Scandic hotels --
one in each Nordic country. A full launch of the service for all
Scandic hotels is planned for March 2006.
   The companies ask all travel agencies that book Scandics and
Hiltons in the Nordic region to supply their VAT identification number
to Pegasus at http://www.comminfo.pegs.com/vat.asp.
   By working with Pegasus to process its commissions and to use the
new VAT invoicing enhancement, Scandic and Hilton improve their
relations with travel agents in Europe and beyond who book their
properties. Additionally, Pegasus is now offering the VAT-processing
service to other hotel chains that use Pegasus' commission processing
service.
   Jean-Paul Herzog, president, Hilton and Scandic -- Nordic, said:
"We are very pleased that Hilton and Scandic in the Nordic region will
now also be using Pegasus Commission Processing as part of our
commitment to enable prompt and easy payment of commissions to travel
agents."
   Bob Boles, chief operating officer for Pegasus, said: "This VAT
processing solution provides a valuable service to travel agencies,
which should earn our new customer Hilton International-Nordic
considerable goodwill throughout the agent community. We were pleased
to work with Hilton-Nordic to develop this critical functionality,
useful for Europe as well as other VAT-regulated regions. We hope to
work with many more hoteliers to implement this new standard
solution."

   About Hilton International

   Hilton International (HI), an operating division of the UK based
Hilton Group plc, owns the rights to the Hilton brand name throughout
the world, with the exception of the USA, where the Hilton brand is
owned and managed by Hilton Hotels Corporation (HHC). Hilton
International operates 403 hotels under the Hilton and Scandic brands.
In the Nordic region (Denmark, Finland, Norway and Sweden) the
portfolio includes 5 Hilton hotels and 125 Scandic hotels. Under a
joint venture agreement, Hilton International and the North American
based Hilton Hotels Corporation (HHC) share responsibility for the
Conrad brand, which includes 17 hotels in 12 countries. A global
marketing alliance between Hilton International and Hilton Hotels
Corporation extends the number of hotels operated by both companies
worldwide to over 2,700 -- over 500 of which are branded Hilton.
Hilton International employs over 71,000 team members in 80 countries.
For further information on Hilton International, please visit our
corporate website, at: www.hiltongroup.com.

   About Pegasus

   Dallas-based Pegasus Solutions, Inc. (Nasdaq:PEGS) is a global
leader in providing technology and services to hotels and travel
distributors. Founded in 1989, Pegasus' customers include a majority
of the world's travel agencies and more than 60,000 hotel properties
around the globe. Pegasus' services include central reservation
systems, electronic distribution services, commission processing and
payment services, and marketing representation services, including the
consumer Web site, www.hotelbook.com(TM). The company's representation
services, including Utell by Pegasus(TM) and Unirez by Pegasus(TM),
are used by nearly 7,000 member hotels in 140 countries, making
Pegasus the hotel industry's largest third-party marketing and
reservations provider. Pegasus has 18 offices in 13 countries,
including regional hubs in London, Scottsdale and Singapore. For more
information, please visit www.pegs.com.