Executive Inn Inc. Withdraws Bid for HARS Systems Inc. Shares and Enters Into Lock-up Agreement with Pegasus Acquisition Ltd.

Press Release: Executive Inn Group Corporation and HARS Systems Inc.
May 17, 2002
VANCOUVER, BC -- Executive Inn Inc.("EII"), a wholly owned subsidiary of Executive Inn Group Corporation, (CDNX: "EIG") announced yesterday it has withdrawn its bid to acquire all of the issued and outstanding common shares (the "Shares") of HARS Systems Inc. ("HARS") at a price of $0.57 per share. EII now owns a total of 6,788,377 common shares of HARS representing approximately 32.7% of the total issued and outstanding common shares of HARS. EII has acquired an additional 129,080 Shares at a price of $0.52 per share pursuant to a right of first refusal disclosed in EIG's press release dated April 11, 2002.

EII and EIG have entered into a lock-up agreement with Pegasus Acquisition Ltd., ("Pegasus") a wholly owned subsidiary of Pegasus Solutions, Inc. (NASDAQ: PEGS - News). Pursuant to the lock-up agreement, EII has agreed to unconditionally deposit 6,788,377 Shares, to an offer (the "Offer") by Pegasus to acquire the Shares at a price of $0.62 per share, in the event that Pegasus makes such an Offer. The obligation of Pegasus to make the Offer is conditional upon, among other things, Pegasus locking up, prior to May 27, 2002, a further 5,743,975 Shares.

Pegasus was founded in 1989 and is a publicly traded company in the United States whose shares trade on the NASDAQ National Exchange (NASDAQ-PEGS). Pegasus is a leading provider of hotel room reservation systems, reservation technology systems, internet reservation and hosting services, call center services, commission processing services and hotel representation services to the global hotel industry.

EXECUTIVE INN GROUP CORPORATION

Hanif Mawji, Chief Financial Officer


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Contact:

Executive Inn Group Corporation
Hanif Mawji
Chief Financial Officer
Phone: (604) 642-5250