BARCELONA (May 9, 2005) - Pegasus Solutions, Inc. (Nasdaq: PEGS) signed more than 150 new European hotels to its hotel representation service in the first quarter of 2005.  A global leader in providing technology and services to hotels and travel distributors, Pegasus provides hotel representation services to more than 3,700 hotels in Europe and more than 7,000 worldwide.  The company announced the new additions at the annual Hotel Electronic Distribution Network Association global conference in Barcelona.

Highlights of the new hotels include:

• Manor Hotel, Coventry, United Kingdom - The 110-room Manor Hotel is a country hotel dating back to 1745, located minutes from the National Exhibition Centre and the Birmingham airport.

• Amadeus Hotel, Hannover, Germany - The recently renovated, 129-room Amadeus, with its unique Mediterranean atmosphere, is close to the main railway station, opera and shopping district.

• Petit Palace Marques Santa Ana, Seville, Spain - The 4-star, 57-room Santa Ana just completed an extensive renovation, with guest rooms featuring computers with free broadband Internet.

• Husa Imperial Tarraco, Tarragona, Spain - Another 4-star addition, the Imperial Tarraco, known as the Balcony on the Mediterranean, features national and international cuisine.

Pegasus� ongoing initiatives to generate bookings in Europe continue to drive positive results for participating hotels.  �In the first quarter of 2005, the number of room nights booked via Utell by Pegasus increased by 33 percent,� said Philippe Bourgeois, manager of the Hotel Aviatic in Paris.  �We�ve also received more guests from Latin America and Spain as a result of Pegasus marketing the Hotel Aviatic to bookers via its Sao Paolo and Madrid voice offices.�  The K and K Cayré Hotel, another Utell by Pegasus member in Paris, registered a 52 percent increase in revenue in the first quarter.

Utell by Pegasus ranks as the world�s largest hotel representation service in terms of number of rooms, handling thousands of reservations each day for nearly 4,000 member hotels through Pegasus' global reservation offices.  Independent hotels join the service to benefit from electronic distribution services, sophisticated rate management tools and reservation systems, and rate programs that help drive travel agent bookings via the long-established UI global distribution system (GDS) code.

The Unirez by Pegasus service gives on-site hotel staff easy tools through which they can manage room rates and promotions.  The Unirez service provides for real-time rates that are automatically distributed to the four major GDSs (Amadeus, Galileo, Sabre and Worldspan) and hundreds of online booking sites.  Travel agents book Unirez by Pegasus hotels by using the UZ GDS code.

About Pegasus Solutions
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� and Unirez by Pegasus�, are used by more than 7,000 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.

Michael Brophy
Public Relations Manager
Pegasus Solutions, Inc.
Campbell Centre I
8350 North Central Expressway
Suite 1900
Dallas, Texas 75206
Phone:  214-234-4400
[email protected]
www.pegs.com