Pegasus' Weekly Commission Processing Proving to be Success Story for Hotels and Travel Agents; Enhanced Service Also Includes W

Four months after giving hoteliers the option to pay
commissions to travel agents on a weekly basis, Pegasus Solutions,
Inc. (Nasdaq: PEGS) today reports that a number of prominent hotel
chains have made the transition. Since the launch of the weekly option
in late March, numerous chains have adopted the new system and are
paying commissions to travel agents each week. Dallas-based Pegasus
Solutions is a global leader in providing technology and services to
hotels and travel distributors.
   Pegasus' industry-leading commission processing service, used by
40,000 hotels worldwide and the top 10 travel agencies in the United
States, processes an average of $40 million in hotel commissions each
month.
   Pegasus' agency customers include the majority of the world's
travel agencies in more than 200 countries. Hotels that participate in
Pegasus' commission processing service can process commission payments
in the frequency of their choice -- ranging from weekly to monthly.
Member travel agencies are paid commissions on a weekly basis. Pegasus
commission processing customers also receive detailed reports for easy
reconciliation.
   In addition to Utell by Pegasus(TM) member hotels, a number of
hotel chains are now processing commissions on a weekly basis,
including:
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-- Marriott             -- Thistle Hotels       -- Kempinski Hotels
 International          -- Fairmont Hotels &    -- Loews Hotels
-- Hilton International    Resorts                  
-- Omni Hotels          -- KSL Resorts          -- Malmaison
-- Jurys Doyle Hotels   -- Golden Tulip Hotels, -- Rosewood Hotels &
                         Inns & Resorts          Resorts
*T

   Additionally, although not processing weekly, the following chains
are now processing commissions more frequently than monthly:

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-- Adams Mark Hotels and   -- Mauna Kea Resort   -- Radisson Hotels
 Resorts                   -- Societe des Bains     and Resorts
-- Marc Resorts Hawaii        de Mer
                            
*T
   "Pegasus' new implementation of weekly commission payments not
only improves the cash flow for travel agencies, it enhances our
relationship with our most important distributors which ensures that
virtually all travel agencies now receive their Marriott commissions
weekly whether they receive their commissions through Pegasus or
Marriott's Central Travel Agent Commission system," said Fred Miller,
vice president for global sales, Marriott International.
   As part of this initiative, Pegasus enhanced the benefits of
agency membership by introducing new electronic deposit options for
payments to travel agency customers in the following countries:
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*T
-- Austria        -- France        -- Norway         -- Switzerland
-- Belgium        -- Germany       -- Singapore      -- Thailand
-- Canada         -- Hong Kong     -- Spain          -- United Kingdom
-- Denmark        -- Italy         -- Sweden         -- United States
-- Finland        -- Netherlands
*T
   This feature allows member travel agencies in these countries to
significantly increase cash flow through weekly electronic deposits,
while simultaneously reducing banking charges typically incurred in
the redeeming of commission checks and drafts.
   Bob Boles, executive vice president and chief operating officer
for Pegasus, said: "We are very pleased with the successful launch of
weekly processing. Our customers see the benefit of improving their
relationships with the travel agent community. With this transition
complete, we look forward to seeing more chains using this enhanced
service."
   More information about Pegasus' financial services is available
online at www.pegs.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, hotelbook.com. 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.