Lodging Company Settle Inn LLC Upgrades Its Reservations Technology by Switching to GenaRes for Travel Agent, GDS and Internet Connectivity.

DALLAS & SIOUX FALLS, S.D. -- GenaRes Worldwide Reservation Services(SM) Ltd., the hotel industry's newest representation and reservations company, announced that Settle Inn LLC has chosen GenaRes as its new provider for GDS(1) and Internet distribution. Settle Inn will be switching from its current provider to GenaRes early this month. South Dakota-based Settle Inn owns, operates and/or franchises seven unique, mid-scale properties in the upper Midwestern U.S.

The switch in reservations companies will provide Settle Inn with an upgrade in its reservations processing. Settle Inn, for the first time ever, will be operating a two-way interface between its AutoClerk(R) property management system (PMS) and its GDS-connected reservations system, enabling automatic updates of room rates and room availability to and from the travel industry GDSs and Internet sites. "This is a major upgrade for our hotels," Settle Inn Chief Executive Officer Brendan Watters said. "Some of our properties have had to rely on having reservations e-mailed or faxed to them from our previous provider. Consequently, our hotel staff had to manually update their on-site PMSs to reflect any changes in room inventory, which is terribly inefficient and can lead to inaccuracies.

"We were thrilled that GenaRes was willing to work with us to develop a two-way interface to connect to our AutoClerk PMS," Watters said. As a result, whenever a travel agent books one of Settle Inn's hotel rooms through a GDS such as Sabre or Amadeus, the reservation will be immediately transmitted to GenaRes, which in turn instantly updates the hotel's PMS. Likewise, if a room is booked directly at the hotel, the PMS automatically updates the GenaRes system to reflect the change in room inventory. This automated two-way reservation process also occurs whenever one of Settle Inn's rooms are booked via third-party Web sites such as Orbitz or Travelocity.

Global Distribution System, the systems used by travel agents for booking hotel rooms, rental cars and airline flights.

With an average daily rate (ADR) of $60, Settle Inn LLC offers lodging franchises to new-build and conversion properties in the limited services economy and mid-scale sector throughout the United States, and intends to add 10 new properties to its brand over the next 12 months. "We absolutely believe that we will be able to attract more hotels to our brand and deliver more reservations to our properties as a result of our switch to GenaRes," Watters continued. "GenaRes is proving to be more than just a vendor -- we feel they are a partner that is truly motivated to help us drive more revenues, and will do whatever it takes to ensure we maximize our distribution opportunities."

The cutover from Settle Inn's current provider to GenaRes will occur by mid February 2006.

Services that GenaRes will provide Settle Inn include: *T

Next-generation seamless connectivity to all GDSs Revenue management

Internet distribution to thousands of Web sitesOnline training

Representation on the GDSs via the chainOngoing code GZcustomization as needed *T

Immediately upon cutover, Settle Inn will begin using GenaRes for receiving reservations from travel agents around the world using the GDS code "GZ" via the major GDSs, as well as from consumers via Internet sites worldwide that are connected to the Pegasus Solutions Online Distribution Network (Nasdaq:PEGS).

"We are proud to be one of the first reservations providers to write a two-way interface to the AutoClerk PMS for GDS and Internet distribution, and both AutoClerk and Settle Inn have been great to work with on this endeavor," commented GenaRes' President Eugene Harris. "We look forward to working with Settle Inn and helping them grow."

GenaRes (http://www.genares.com) was formed last year by hotel industry veterans Michael G. Wilkins, Ricky A. Wilkins and Eugene Harris, who were founders of the Dallas-based hotel representation and reservations company Lexington Services Corp. In addition to originally founding Lexington Services, the GenaRes founders together have more than 30 years experience running a hotel company: Lexington Hotel Suites and Inns, which at one point had 50 hotels in its portfolio. According to Harris, "GenaRes is probably the only third-party representation service that was truly created by hoteliers for hoteliers. As former hoteliers, we understand the day-to-day challenges that hotel operators face." GenaRes' other customers include Americas Best Value Inn, Korman Communities, Italy's Hotel Marketing Solutions (HMS), India's Spectra Hospitality Pvt Ltd, and hundreds of independent properties.

About Settle Inn LLC

Formed in 2005, Settle Inn LLC is a limited service lodging company with a difference. Settle Inn's unique exterior and service philosophy, "Service with Chivalry," make the brand stand out from other hotels. With seven properties located throughout the Midwestern U.S., Settle Inn utilizes theme suites in its properties to further differentiate itself in the market: "Our Look Gets People In the Door...Our Service Brings Them Back." Based out of Aberdeen, South Dakota, Settle Inn prides itself on its chivalrous approach to business, both with guests and franchisees.

About AutoClerk

AutoClerk(R) began in 1981, when a computer programmer and a hotel clerk joined forces to create a property management system (PMS) designed to address the specific needs of small to medium-sized properties. Today's AutoClerk is a regional PMS, no longer confined to the boundaries of the hotel, with interfaces to more than 100 third-party systems. Based in Lafayette, Calif., and still owned and operated by the founders, AutoClerk serves hotels across the country with additional sales representation in the Mid-West and New England. www.autoclerk.com

About GenaRes Worldwide Reservation Services Ltd.

Launched in 2004 by former Lexington Services Corp. founders and executives, GenaRes Worldwide Reservation Services(SM) Ltd. (www.genares.com) is the hotel industry's newest hotel reservations and representation company. As the first new central reservation system (CRS) to come to market since 1999, GenaRes' GenaRater(SM) Web-based CRS and related services are provided on an ASP basis and are designed for properties ranging from small independents to large chain hotels worldwide. Laying its claim as the lodging industry's only privately held reservations technology provider that was created by hoteliers for hoteliers, GenaRes' services include: seamless GDS and Internet connectivity, a private-label Internet booking engine, a Web-based CRS with two-way XML property management system interfaces, and private-label voice reservations/call center services. GenaRes is headquartered in the Dallas/Fort Worth suburb of Grapevine, Texas, and has sales representation worldwide, with offices in Italy, Greece, Cyprus, Turkey, Switzerland and India.

Editor's Note: Photos of GenaRes executives or Settle Inn properties available on request.