4oceans and Pegasus Solutions Offer Chinese Travel Agencies Access to Global Hotel Inventory and Commission Processing Services.

Business Editors/Travel Writers

World Travel Market

WTM Stand # GV2280

DALLAS & LONDON--(BUSINESS WIRE)--Nov. 10, 2003

Pegasus' Utell Signs Agreement to Become a Preferred Hotel

Supplier to 4oceans

4oceans and Pegasus Solutions announced a comprehensive services agreement that enhances the capabilities and reach of travel agencies in China. The agreement formalizes 4oceans' use of the Pegasus switch, giving 4oceans platform subscribers, including more than 3,000 China-based travel agencies, access to the 50,000 hotels in Pegasus' Online Distribution Database.

In addition, 4oceans will use Pegasus' commission processing services to expedite the payment of commissions to 4oceans subscribers in China. This is an industry first and will bring automation and speed to the complicated hotel commission collection process most Chinese agencies navigate today. Finally, Pegasus' Utell, representing the world's largest collection of independent hotels(1), announced that it had signed a distribution agreement with 4oceans to become a preferred supplier of hotel rooms from small chains and independent hotels.

Pegasus Solutions, Inc. (Nasdaq:PEGS) is a leading worldwide provider of hotel reservations-related services and technology. The 4oceans platform is the largest electronic distribution channel in China, featuring almost 1,500 3-5 star hotel properties in mainland China alone. In 2002, the Chinese Tourist Authority promoted 4oceans as the country's preferred hotel central reservation system. The companies announced the agreement at World Travel Market in London.

With Chinese authorities easing outbound visa requirements, the number of tourists and business travelers leaving China for global destinations has dramatically increased -- topping more than 15.5 million trips in 2002. With the SARS crisis receding and travel inquiries picking up, the ability of Chinese travel agents to access global hotel inventory for their clients has never been more critical.

4oceans is the established leader in connecting Chinese agencies to live inventory, and the inclusion of Pegasus' participating hotels enhances the services 4oceans offers to subscribers. 4oceans' connection to the Pegasus switch, along with Utell hotels' status as a preferred supplier, gives hotels around the world that distribute inventory via Pegasus increased visibility at the point-of-sale in this burgeoning travel market.

A key component of this agreement is the provision of Pegasus' commission processing services, through 4oceans, to Chinese agencies. Complex domestic financial regulations present obstacles for Chinese agencies attempting to collect commission payments directly from international hotels. A unique arrangement between Pegasus and 4oceans allows the payments collected from the 35,000 hotels that participate in Pegasus commission processing to flow through 4oceans to their subscribing agencies.

This process saves time and money for 4oceans subscribers by maximizing collection of earned commissions and reducing currency exchange costs. 4oceans subscribers in China receive their commission payments in renminbi, the Chinese currency.

"We decided to work with Pegasus because of the experience, reliability, and flexibility of their connection services," said David Yates, Chief Executive of 4oceans. "Major hotel groups also wanted the option to accept bookings from 4oceans' subscribers directly into their property management systems. By joining forces with Pegasus, we have killed these two birds with one stone."

"We're excited to work with 4oceans in this growing marketplace," said Bob Boles, executive vice president of sales and marking for Pegasus Solutions. "In particular, we are pleased to aid Chinese travel agencies in the collection of commission payments they have earned. We look forward to a mutually-beneficial relationship with 4oceans and its subscribers for years to come."

Company Information

About 4oceans

4oceans was formed in March 2002 through a merger between the international systems business of TFM plc and the CRS business of Hotelworld. The company's global headquarters is based in Oxfordshire (UK) with operations and marketing offices located in Beijing and Shanghai in China. 4oceans' initial subsidiary in China, Si Hai Tong Jie, was a joint venture with the Beijing Tourist Authority. The organization is now the largest electronic distribution channel for hotel reservations in China and is committed towards developing its business in both emerging and established markets globally. For further information, visit www.4oceans.com.

About Pegasus Solutions, Inc.

Dallas-based Pegasus Solutions, Inc. (Nasdaq:PEGS) is a leading global provider of hotel reservations-related services and technology. Founded in 1989, Pegasus' customers include a majority of the world's travel agencies and more than 50,000 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 service is used by nearly 4,400 Utell member hotels in more than 140 countries, making Pegasus the hotel industry's largest third-party marketing and reservations provider. Pegasus has 18 offices in 11 countries, including regional hubs in London, Scottsdale and Singapore. For more information, please visit www.pegs.com.

(1) Hotels Magazine, July 2003, "Hotels Consortia 25"