PEGS Pegasus Solutions (MM)

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: -0- *T -- 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: -0- *T -- 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: -0- *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.