Utell by Pegasus Expands Hotel Representation Presence in Greece, Italy, Portugal and Spain.

Business Editors/Travel Writers

DALLAS--(BUSINESS WIRE)--Feb. 26, 2004

Company Represents 600+ Independent Hotels and Small Chains in

Southern Europe; More Than 3,000 Hotels and 8,000 Agencies

Participate in Pegasus Commission Processing

Pegasus

Solutions, Inc. signed agreements with three prominent Spanish hotel chains in late 2003, reinforcing the company's leading role in Southern Europe's hotel industry. The three chains -- Aspis Hotels, Center Hotels, and Partner Hotels -- became members of the Utell by Pegasus(TM) representation service. Through their Utell membership, the hotels receive electronic distribution services to the major global distribution services and the Internet, voice services, and marketing and promotional support targeted at travel agencies and corporate travel managers. Dallas-based Pegasus Solutions, Inc. (Nasdaq: PEGS) is a leading worldwide provider of hotel reservations-related services and technology.

These agreements fortify an already-strong presence in the region for Pegasus' representation service line. In addition to the three chains, more than 50 individual properties in the four countries became Utell by Pegasus members in 2003. The Utell name and UI code are renowned throughout Southern Europe after more than 70 years of promoting and generating bookings for independent properties and small chains. Today, the Utell by Pegasus service represents 600-plus properties combined in the region, with more than 300 in Italy and 200 in Spain. Nearly 4,400 hotels are members worldwide, with more than 3,000 in Europe.

"Utell by Pegasus was clearly the best option for us to get our properties in front of travel agents and establish an online presence," said Nabil Lamarty, director of sales at Partner Hotels. "We were pleased with their efficient implementation, and the relationship is already driving bookings for us."

Other well-known small hotel chains that agents can book via the UI code include:

-- Astra Hotels - Greece

-- Catalonia Hoteles - Spain

-- Cogneta Hotels - Italy

-- Corporacion Hispano Hotelera - Spain

-- Framon Hotels - Italy

-- Heritage Hotels - Portugal

-- Hesperia Hotels - Spain

-- High Tech Hoteles - Spain

-- Hoteles Centro Ciudad - Spain

-- Sana Group - Portugal

-- Silken Hotels - Spain

-- Vincci Hoteles - Spain

-- Una Hotels & Resorts - Italy

"We've used Utell by Pegasus services to distribute inventory on the GDSs and handle domestic and international voice bookings since January 2003," said Bruno Chiaruttini, director of sales and marketing at the Hotel Majestic in Barcelona. "In that time, our sales have increased by 30%, and we've markedly improved our relationships with top quality clients across the globe."

Travel agents can book Utell by Pegasus member hotels in any major GDS by using the UI code, or via the Pegasus travel agent portal at www.UtellAgent.com. All Utell by Pegasus rooms booked on the portal or via GDS are fully commissionable.

Many travel agencies in Southern Europe that book Utell by Pegasus member hotels are also familiar with Pegasus via their own membership in Pegasus Commission Processing, the hospitality industry's leading automated commission processing service. Since introducing the service on the continent in 1994, combined enrollment in the four countries of Greece, Italy, Portugal and Spain has grown to 3,000-plus hotels and more than 8,000 travel agencies.

"We've used utilized Pegasus' commission processing service since 1995, and it has saved us a great deal of time and money when it comes to gathering and reconciling commission payments from hotels," said Claudia Castillo of Ventura SPA, a prominent agency in Milan, Italy. "Furthermore, the efficiency of Pegasus' technology has improved cash flow for our agency, which has been critical in recent years."

On behalf of its member agencies, Pegasus' commission processing service collects guest stay information from hotels around the world related to bookings made by participating agency representatives. After consolidating the information and commissions, Pegasus converts the properties' commission payments into the agency's currency of choice and sends a single payment to the agency, along with detailed reconciliation information by hotel brand.

About Pegasus Solutions

Dallas-based Pegasus Solutions, Inc. (Nasdaq: PEGS) is a leading global provider of hotel reservations-related services and technology. Founded in 1989, Pegasus' customers include a majority of the world's travel agencies and more than 50,000 hotel properties around the globe. Pegasus' services include central reservation systems, electronic distribution services, commission processing and payment services, property management systems, and marketing representation services. The company's representation services, including Utell by Pegasus, 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 12 countries, including regional hubs in London, Scottsdale and Singapore. For more information, please visit www.pegs.com.