Press Release: Pegasus Solutions, Inc.
February 21, 2001
DALLAS, TX -- Pegasus Solutions, Inc. (Nasdaq: PEGS) yesterday announced it has signed an agreement with Chicago-based
Orbitz, the travel Web site founded by American, Continental, Delta, Northwest and United Airlines. Pegasus will
be the online hotel reservation system for Orbitz, http://www.orbitz.com, providing
travelers with the ability to make hotel bookings at more than 38,000 hotels in more than 200 countries. Orbitz
also has signed an agreement with Pegasus Commission Processing, which provides fully automated solutions for managing
Orbitz' hotel commission revenues. Pegasus Solutions is a leading provider of hotel industry transaction processing
solutions and electronic commerce services.
Scheduled to launch in June 2001, Orbitz claims it will be the first site to offer consumers an advanced-technology
search engine and a truly unbiased and comprehensive listing of airfares and schedules. On Orbitz, consumers will
be able to purchase tickets on more than 450 airlines, plus find deals on car rentals, lodging, cruises, and vacation
packages. Orbitz is the first site with one-stop shopping for low-priced, Web-only fares on nearly 30 airlines.
According to Steve Hafner, vice president of Business Development for Orbitz, selecting the best technology providers
in each specialized travel niche is critical to Orbitz's success. ``We plan to provide consumers the ultimate online
venue for easily accessing great travel opportunities and hotels are an integral part in providing Orbitz users
with a comprehensive offering. By utilizing Pegasus' services, we will achieve aggregated supplier connectivity,
control of hotel content to differentiate our service offering, and ensure from day one that we are effectively
collecting and managing our hotel commission revenue.''
Pegasus' services will enable Orbitz customers to view detailed property information, rates and photos, and secure
instant real-time reservations 24 hours a day at hotels worldwide. More than 40% of the hotels in Pegasus' Online
Distribution Database are located outside the United States.
``We are pleased that Orbitz decided to use Pegasus as its hotel content and reservations supplier instead of a
GDS-based solution,'' said John F. Davis III, president and chief executive officer of Pegasus Solutions. ``We
are committed to providing economical distribution for travel suppliers, while affording optimum content control.
These factors are especially important for start-ups, such as Orbitz, to more effectively maintain costs while
differentiating themselves from the pack.''
Today, Pegasus processes in excess of $42 million in hotel commissions per month from more than 100 hotel companies
in 159 countries. Twenty-three of the top 25 hotel brands worldwide participate in the Pegasus Commission Processing
service, the hotel industry's leading travel agent commission processing service(1).
Through its customers' affiliates, thousands of Web sites are Powered by Pegasus(TM). A sampling of online travel
agency sites Pegasus ``powers'' includes TravelWeb.com, TravelHero.com, Hotwire.com, Asiatravelmart.com and Continental.com.
According to industry analyst Forrester Research, online hotel sales are expected to grow to $5.7 billion in 2004.
Company Information
Dallas-based Pegasus Solutions, Inc. (http://www.pegs.com) is a leading provider
of end-to-end reservation distribution solutions to the hotel industry worldwide. Its services include central
reservations systems; third-party marketing and reservation representation services, including Utell and Golden
Tulip Worldwide; electronic distribution services that connect more than 38,000 hotels to the Internet and to the
global distribution systems (GDS); commission processing and payment services; the consumer travel Web site TravelWeb.com
(http://www.travelweb.com); data warehousing services; and soon, a Web-based
property management system. Pegasus' customers comprise more than 100,000 travel agencies around the world, including
nine of the 10 largest U.S.-based travel agencies(2); more than 40,000 hotel properties around the globe, including
18 of the 20 largest hotel companies in the world based on revenues and total number of guest rooms(3); and more
than 1,000 Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate
headquarters in Dallas, Pegasus has 36 offices in 23 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, 1999, and its Form S-4 (File No. 333-92683) that was declared effective March 31, 2000.
SOURCE: Pegasus Solutions, Inc.