Pegasus Solutions Strengthens Penetration in Asia Pacific Market with Travel Agent Commission...

Business Editors

SINGAPORE--(BUSINESS WIRE)--Dec. 10, 2001

Successful Expansion in ASPAC Solidifies Pegasus' Position

as the Travel Industry's Leading Solution for

Managing Hotel Commissions Worldwide

Pegasus Solutions, Inc. (Nasdaq:PEGS) continues

to increase its penetration into the Asia Pacific travel market through new or expanded relationships with 11 leading travel agencies and related organizations, increasing membership in Pegasus Commission Processing by more than 900 locations in the Asia Pacific region over the past six months. Pegasus Solutions is a leading provider of hotel industry transaction processing solutions and electronic commerce services.

Pegasus Commission Processing, which is the hotel industry's leading travel agent commission processing service, provides travel agency members around the world with a consolidated single commission payment in their choice of currency from participating hotels each month. Pegasus also offers Electronic Reconciliation & Tracking, an innovative service that works in tandem with the basic Pegasus Commission Processing service and equips travel agencies anywhere in the world with a totally automated solution for the management of hotel commissions.

Travel agencies and related organizations within the Asia Pacific region that have recently initiated or expanded their relationship with Pegasus for commission processing services include:

 Axess International
 BTI
 Carlson Wagonlit Travel Australia
 Flight Centre
 H.I.S. Co., Ltd.
 Harvey World Travel
 J.A.L.
 JTB
 M.O. Air System
 Swire Travel
 Yusen Travel

One of the leading travel and expense management companies in the world, Carlson Wagonlit Travel in Australia (www.carlsonwagonlit.com) is one of the agencies in the Asia Pacific region to sign with Pegasus Commission Processing and to also opt to use Pegasus' expanded service, Electronic Reconciliation & Tracking. Pegasus Commission Processing is part of Carlson Wagonlit Travel Asia Pacific's strategy to deliver more value to its clients, according to Peter Brady, director, Industry Relations & Solutions Group -- Asia Pacific of Carlson Wagonlit Travel. "By outsourcing our commission collection administrative tasks to Pegasus, we are able to better focus on our core competency -- travel management, and not get sidetracked with chasing commissions. We couldn't perform these tasks for hundreds of offices as quickly and reliably without the invaluable service provided by Pegasus," Brady said.

Swire Travel in China, Hong Kong and Taiwan also recently adopted Pegasus' Electronic Reconciliation & Tracking service. Agencies subscribing to this enhanced service gain the ability to analyze hotel receivables, monitor hotel payment trends, and more effectively receipt and report hotel commissions in accordance with corporate account agreements. Pegasus also assists in obtaining outstanding commission payments on agencies' behalf. The number of agencies enrolled in the Electronic Reconciliation & Tracking service increased by 42 percent this year.

Another new Pegasus Commission Processing customer, Tokyo-based H.I.S. Co., Ltd. (www.his-j.com) has 172 locations and is one of the largest travel agencies in Japan. H.I.S. was in need of an economical solution for consolidating its hotel commission program. "H.I.S. elected to join Pegasus Commission Processing because it provides a wide range of useful services from consolidated payment to an automatic reporting package," said Hideo Sawada, president and chief executive officer of H.I.S. "Our participation with Pegasus greatly reduces the amount of staff time spent handling multiple checks and deposits. In addition, Pegasus converts all of our commissions into one currency.

"H.I.S. now is able to more effectively collect on commission payments dotting the globe, including those due from independent hotels," Sawada said. Pegasus Commission Processing will also be collecting commissions on behalf of H.I.S.'s Internet site, which is the first tour operator Internet site in Asia to be Powered by Pegasus(TM). Through its electronic distribution agreement with Pegasus, H.I.S.'s Web site gains seamless access to the central reservations systems of nearly 200 hotel brands and provides online travelers with real-time rates, availability and booking capabilities with instant online confirmations.

"The global applicability of our Commission Processing service has been the key to our success in the Asia Pacific region. Significant interest is originating from the large Asia Pacific corporate travel companies looking to offset decreasing airline commission revenue and secure additional commissions from slow paying hotels. In addition, we provide a way for travel agencies to gain access to better and timelier information to assist with their own customer service," said Jeff Bzdawka, senior vice president of Pegasus Financial Services. "We are ahead of our growth goals for the Asia Pacific region and foresee continued adoption of our value-added services by agencies in the region."

With the majority of travel agencies worldwide as subscribers and more than 32,000 hotel property members, Pegasus processes an average of $41 million in travel agent commissions per month on behalf of more than 100 hotel companies in 159 countries.

Company Information

Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading global provider of hotel reservation technologies. Pegasus' customers comprise the majority of travel agencies around the world, including the top 10 largest U.S.-based travel agencies(1); more than 46,000 hotel properties around the globe, including 48 of the 50 largest hotel brands in the world based on total number of guest rooms(2); and thousands of Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 23 offices in 16 countries, including regional hubs in Phoenix, London and Singapore. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.

This statement contains references to future events and projected results, including anticipated transactions involving the Company and its service offerings. There can be no assurance that the referenced future events or projected results will actually occur or that the future financial performance of the Company will be as projected. Actual occurrences, results and performance may differ substantially and materially from those projected as a result of a number of risks and uncertainties, such as adverse changes in general market conditions for business and leisure travel as a result of additional terrorist activities, action by U.S. military forces, changes in hotel room rates, capacity adjustments by airlines, trends in the overall demand for travel, and the inherent difficulty in making projections during this period of uncertainty, as well as other risks and uncertainties mentioned in this statement or detailed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2000.

(1)Travel Weekly, June 25, 2001, "Top 50 Travel Agencies"

(2)Hotel Business, February 7, 2001, "The Top Hotel Brands"