Press Release: Pegasus Solutions, Inc.
January 2, 2002
DALLAS, TX -- Pegasus Solutions, Inc. (Nasdaq: PEGS) Dec. 21, 2001 announced it has signed agreements with two
more travel-related Web sites to provide online reservations capabilities and hotel commission collection. Calgary,
Canada-based WorldWeb.com and San Diego-based HotelLocators.com are now Powered by Pegasus. Dallas-based Pegasus
Solutions (www.pegs.com) is a leading provider of hotel industry transaction processing solutions and electronic
commerce services.
WorldWeb Technologies Inc. (www.worldweb.com), which will be using Pegasus' XML interface, is a leading online
information source for the Canadian tourism industry and features a WorldWeb Travel Guide(TM) for Canada, the United
States and London, and will include online hotel booking capabilities for each of the three geographic areas. According
to WorldWeb technologies, more than 600,000 visitors per month use these travel guides to plan both leisure and
business trips, and consumers make more than 2,000 hotel reservations each month through the Web site. Site customers
can choose from the 1,300 hotels in Canada, 25,000 hotels in the United States and 620 hotels in London that are
in Pegasus' Online Distribution Database.
``I'm delighted that we can now offer real-time, online hotel reservations at the hotel properties that are located
throughout the geographic regions that we serve,'' said Frank Verhagen, president of WorldWeb Technologies Inc.
``WorldWeb.com is a leader in the Canadian tourism industry, and I'm thrilled that we are associated with a leader
in the hospitality technology field: Pegasus Solutions.''
HotelLocators.com (www.hotellocators.com) is a hotel reservations service targeted to individual and group travelers
on the West Coast of the United States. Pegasus is augmenting the existing hotel property content of HotelLocators.com,
which will be adding all of Pegasus' 42,000 hotel customers to their site.
``Although we had an established hotel base prior to signing with Pegasus, this agreement broadens our functionality
and product offering,'' HotelLocators.com Managing Director Mark Wilkinson said. ``We continually strive to improve
our Web site, and Pegasus Solutions' technology and hotel database augments our existing hotel inventory, giving
our consumers even more hotel choices.''
By offering online bookings, third-party sites such as WorldWeb.com and HotelLocators.com operate as online travel
agencies, and in most cases, generate revenue through the commissions they receive from hotels that are booked
on their Web sites. Sites such as these sign with Pegasus to power their sites as an alternative to building individual
direct connections to individual hotels or as an alternative to using a global distribution system. Through one
simple connection to Pegasus' Electronic Distribution system, these sites gain direct access to the central reservations
systems of the more than 42,000 hotels in Pegasus' Online Distribution Database. As a result, the sites can often
obtain access to better hotel rates and room descriptions. Pegasus' hotel customers are permitted to feature both
content and images and the hotels are provided with online editing tools to ensure the property information is
always up-to-date.
Both of the Web sites require access to different hotels in order to serve their respective audiences and geographic
regions. The flexibility of Pegasus' technology and database allows third-party Web sites to select the specific
hotels that they want to feature for online bookings capabilities.
The two Web sites also joined the Pegasus Commission Processing Service as a better method of collecting the commissions
from the hotels booked on their respective sites. Pegasus Commission Processing collects actual guest stay information
from participating hotels worldwide and processes the commissions on behalf of the Web sites and deposits one monthly,
consolidated commission check in their currency of choice to their bank account. In addition, the Web sites receive
detailed monthly reporting of their commission activities and gain access to Pegasus' customer service department,
which can assist them in reconciling the monthly reports to actual guest stay information. Other online travel-related
Web sites that use Pegasus Commission Processing include Travelocity.com, Expedia.com, Travelhero.com, Orbitz.com
and Lowestfare.com.
Through its customers' affiliates, more than 1,000 Web sites are Powered by Pegasus, providing detailed property
information, photographs and real-time reservations at thousands of hotels. Other third-party sites that are Powered
by Pegasus include Pegasus' consumer Web site TravelWeb.com, HotWire.com, TravelHero.com, Orbitz.com and Expedia.com.
Industry Statistics
Company Information
Calgary, Canada-based WorldWeb Technologies Inc. (www.worldweb.com) is a
leading online publisher of information for Canada's tourism industry. Founded in 1994, each of the WorldWeb Travel
Guide Web sites (Canada, United States and London) includes information on lodging, attractions, events, shopping,
restaurants and more. Clients include Banff Park Lodge, Brewster Transportation and Tours, Mirage Adventure Tours
and Jasper Chamber of Commerce.
San Diego-based HotelLocators.com Inc. (www.hotellocators.com) was founded
in 1989 as California Reservations to supply hotel reservations for individual and group travelers on the West
Coast. In 1999, the company became an Internet-based reservations service and reincorporated in 2001 as HotelLocators.com.
The Web site serves 5,000 cities including Los Angeles, San Francisco, Anaheim, New York, Boston, Chicago, Orlando,
New Orleans, Washington, D.C. and Atlanta. HotelLocators.com is privately held and supplies hotel accommodations
at more than 35,000 hotels, inns and resorts. Clients include Cruise West, Hershey Foods, Lucent Technologies,
NATO and Xerox Corporation.
Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading global provider
of hotel reservation technologies. Its services include central reservations systems; electronic distribution services
that connect more than 42,000 hotels to the Internet and to the global distribution systems (GDS); travel agent
commission processing and payment services; the consumer Internet site TravelWeb.com (www.travelweb.com); the Utell
marketing and reservation representation service (www.Utell.com); and PegasusCentral(TM),
a Web-based enterprise solution with property management applications. Pegasus' customers comprise more than 100,000
travel agencies around the world, including the top 10 largest U.S.-based travel agencies1; 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 rooms2; 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
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''
--------------------------------------------------
Contact:
Pegasus Solutions, Inc.
Karin Wacaser, 214/523-0129
karin.wacaser@pegs.com
or
Publicis Dialog for Pegasus
Kelly Campbell, 972/628-7738
kelly.campbell@publicis-usa.com