Prides Capital Partners, LLC Completes Acquisition of Pegasus Solutions, Inc.

Pegasus Solutions, Inc. (Nasdaq:PEGS) announced today
the completion of the acquisition of Pegasus by an investor group led
by Prides Capital Partners, LLC, including entities affiliated with
Prides, Tudor Investment Corporation and Belfer Management.
Dallas-based Pegasus is a global leader in providing technology and
services to hotels and travel distributors.
   On December 19, 2005, affiliates of Prides Capital Partners, LLC
entered into a merger agreement with Pegasus to acquire the company in
a transaction valued at approximately $275 million. Under the terms of
the merger agreement, Pegasus stockholders not affiliated with the
investment group will receive $9.50 in cash, without interest, for
each share of Pegasus common stock.
   "We're excited to complete this acquisition and move forward with
the Pegasus team," said Kevin Richardson, a managing partner at Prides
Capital. "Pegasus has a strong core franchise, leading edge technology
and a management team that is focused on meeting customers' evolving
needs, which we believe will be key factors as the company continues
to expand its market position."
   Commenting on the closing, John F. Davis III, president, chief
executive officer and chairman of Pegasus Solutions, said: "I am
pleased with the successful outcome of this transaction and welcome
our expanded relationship with Prides Capital. Pegasus will continue
to focus on developing products and delivering technology and business
process solutions that help hotels and travel distributors come
together to maximize revenue and profitability."
   Pegasus common stock will cease trading on the Nasdaq at market
close today, May 4, 2006, and will be delisted. As soon as is
practicable, a paying agent appointed by Pegasus will send information
to all Pegasus stockholders of record, explaining how they can
surrender Pegasus common stock in exchange for $9.50 per share in
cash, without interest. Stockholders of record should await this
information before surrendering their shares. Stockholders who hold
shares through a bank or broker will not have to take any action to
have their shares converted into cash, since these conversions will be
handled by the bank or broker.

   About Pegasus Solutions, Inc.

   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 more than 7,000 member hotels in 140 countries, making
Pegasus the hotel industry's largest third-party marketing and
reservations provider. Pegasus has 17 offices in 12 countries,
including regional hubs in London, Singapore and Scottsdale, Arizona.
For more information, please visit www.pegs.com.

   About Prides Capital Partners, LLC

   Prides Capital, based in Boston and San Francisco, specializes in
strategic block, active investing in small- and micro-cap public and
private companies. In partnership with its management teams, Prides
seeks to create value through strategic, operational and financial
assistance. For more information, please visit www.pridescapital.com.

   About Tudor

   Founded in 1980, The Tudor Group is a leading alternative asset
management firm consisting of Tudor Investment Corporation and its
affiliates. Managing over $14 billion, the firm's investment
capabilities are broad and diverse. The Tudor Group is active in
global macro trading, equity investing in the U.S., Europe and Asia,
emerging markets, commodities, event driven strategies and technical
trading systems.

   About Belfer

   Belfer Management is a diversified investment firm which
historically has emphasized the energy, real estate and financial
services industries