MSI Agrees to Acquire Property Management Systems from Pegasus Solutions

Pegasus Solutions, Inc. (Nasdaq:PEGS) announced today
that it has selected Multi-Systems Inc. (MSI), a leading property
management system provider, as the buyer for Pegasus' NovaPlus and
GuestView(R) property management systems (PMS) business. MSI has
signed an agreement to buy Pegasus' PMS business, which has both chain
and independent hotel customers including a number of Best Western
properties.
   Dallas-based Pegasus Solutions is a global leader in providing
technology and services to hotels and travel distributors. MSI
develops, markets and supports integrated property management systems
for the lodging industry. MSI has an existing relationship with Best
Western International as one of its technology providers; the company
already has an interface with Best Western's LYNX central reservation
system. MSI has a customer base of more than 2,800 properties.
   Pegasus will continue to operate its PMS business and to provide
support to its PMS customers until the purchase by MSI has been
completed. The terms of the transaction were not disclosed. Any gain
or loss in connection with the transaction is not expected to be
material to the operations of the company and will be recorded in
discontinued operations. Pegasus continues to review opportunities
regarding the sale of its PegasusCentral(TM) property management
system.
   John F. Davis III, chairman and CEO of Pegasus, said: "MSI is a
great choice because it is a respected PMS supplier in the hotel
industry, and the team there already has great experience working with
Best Western International. We're committed to working with MSI toward
a smooth transition."

   About MSI

   MSI, founded in 1990, is a leading supplier of hotel technology
and property management systems. With an installed customer base of
more than 2,800 hotels and resorts throughout North America, MSI is
one of the lodging industry's largest providers of fully integrated
property management, sales, marketing & catering, point of sale,
centralized corporate services, and wireless PM systems. MSI
specializes in "total system solutions" for management companies and
hotel chains by providing central reservation and property system
integration. MSI's customer support team has been recognized as one of
the best in the industry and is the key to the success of their
products and services. For additional information about Multi-Systems,
Inc. technology solutions, please contact Bridget Oliva at
800-331-7890 or [e-mail]. For more information on MSI,
visit www.msisolutions.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.

   Some statements made in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements
regarding future events, financial projections, estimated transaction
volumes and expected average daily room rates, as well as management's
expectations, beliefs, hopes, intentions or strategies regarding the
future. Because such statements deal with future events, they are
subject to various risks and uncertainties, and actual results could
differ materially from current expectations. Factors that could cause
or contribute to such difference include, but are not limited to,
terrorist acts or war, global health epidemics, variation in demand
for and acceptance of the company's products and services, the level
of product and price competition from existing and new competitors,
delays in developing, marketing and deploying new products and
services, any strategic alternative undertaken by the company, the
inability of the company to sell the PMS operations, risks associated
with a PMS sale transaction and the inability of the company to
terminate the PMS services as expected, as well as other risks
identified in the company's Securities and Exchange Commission
filings, including those appearing under the caption Risk Factors in
the company's Annual Report on Form 10-K for the year ended December
31, 2004.