2,200 Utell by Pegasus Member Hotels Slash Rates Through Worldwide GREATRATE Promotion.

DALLAS -- Signature Program Discounts Rates by as Much as 50 Percent at Prominent Independent Properties; Travel Agents Can Access Rates Via UI Code on all Major GDSs

More than 2,200 Utell by Pegasus(TM) member hotels are participating in the 2005 yearlong GREATRATE promotion. The well-known discount rate program recorded increases in promotional bookings for many hotels and travel agencies in 2004, generating more than 400,000 room nights around the world. Dallas-based Pegasus Solutions (Nasdaq:PEGS) is a global leader in providing technology and services to hotels and travel distributors.

"Last year was our best one yet for GREATRATE bookings," said David Taylor, director of sales and marketing for The Lowndes Hotel in London. "Since expanding the amount of inventory we make available for the promotion, we've seen an increase of 91 percent in revenue. Room nights booked via GREATRATE were up 105 percent in 2004." The Lowndes Hotel is best known for its location in the heart of Knightsbridge, steps away from Harrods and Harvey Nichols.

More than 2,200 hotels -- including 1,600-plus properties in Europe, nearly 500 in the Americas, and 180 in Asia Pacific -- are offering discounted rates via the GREATRATE program. Many popular destinations are represented, highlighted by the following cities:

City & Country           Number of Utell Hotels Participating
                                          in GREATRATE Program
--------------------------------- ------------------------------------
Barcelona, Spain                                  70
Geneva, Switzerland                               16
London, United Kingdom                            68
Miami, Florida                                    29
New York, NY                                      20
Paris, France                                     127
Rome, Italy                                       52
Tokyo, Japan                                      13
Vienna, Austria                                   31

Discounts at participating hotels begin at 15 percent, with many properties offering steeper cuts that range as high as 50 percent off rack rate. During July and August, the minimum discount at participating hotels is 25 percent. As an added value, all guests booked via GREATRATE receive a complimentary breakfast after each night of their stay.

Travel agencies across the globe are increasingly aware of GREATRATE and are making reservations through this unique program in growing numbers. "The GREATRATE program, with its broad range of diverse hotels, has been a tremendous asset to our corporate client base," said Trevor Elswood, commercial director of Booking Services International, a leading European agency serving primarily business travelers. "Our GREATRATE bookings were up 278 percent in 2004, making it one of our most important programs."

How To Book A GREATRATE At Participating Utell by Pegasus Properties

All Utell by Pegasus member hotel bookings are fully commissionable to accredited travel agents. Travel agents can book GREATRATE rates through any Pegasus voice reservations office, via all GDSs, and on www.UtellAgent.com. Rates are available at participating properties through Dec. 31, 2005, and are valid seven days a week. All bookings require a minimum two-night stay, with no maximum stay restrictions.

When booking via GDS, travel agents should use the following guidelines to access participating GREATRATE hotels:

Amadeus: Access UI and then SR-GRS

Galileo: Access C-L and search for GREATRATE

Sabre: Access RC-P and search for GREATRATE

Worldspan: Access UI and then PC-PRO

When calling reservation centers, travel agents should cite "GREATRATE" when making a booking.

The following is a sample listing of hotels offering GREATRATEs(a):

Participating Property                       GREATRATE
----------------------------------- ----------------------------------
Carlton Hotel, Singapore                       from 125 SGD
Normandy Hotel, Paris                          from 162 EUR
Excelsior Hotel, Frankfurt                     from 65 EUR
Lowndes Hotel, London                          from GBP 155
Shinjuku Prince Hotel, Tokyo                 from $14000 YEN
Hiberia Hotel, Rome                            from 80 EUR
Pan American Hotel, New York                  from $129 USD

(a)Individual hotel participation, as well as hotel rate and
availability, are at the discretion of the individual property.

Travel agents can utilize www.UtellAgent.com to see photos of properties, get details on local attractions, and learn other pertinent information. Agents are invited to visit http://www.utell.com/great_rate.cfm to maximize service to their clients and find more information on the GREATRATE program.

Company Information

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 nearly 60,000 hotel properties around the globe. Pegasus' services include central reservation systems, electronic distribution services, commission processing and payment services, property management systems, and marketing representation services. The company's representation services, including Utell by Pegasus(TM) and Unirez by Pegasus(TM), are used by nearly 8,000 member hotels in 140 countries, making Pegasus the hotel industry's largest third-party marketing and reservations provider. Pegasus has 17 offices in 12 countries, including regional hubs in London, Scottsdale and Singapore. For more information, please visit www.pegs.com.

Editors Note: Photos of Participating Properties Available Upon Request.

(C) 2005 Pegasus Solutions, Inc. All rights reserved.