As a result of the agreement, consumers connected to the Internet can soon book hotel rooms at high-profile Las Vegas hotels, such as Luxor, Excalibur, New York New York and Stratosphere. LVRS will join Pegasus Systems' extensive online hotel database and be available for online booking through Pegasus Systems' TravelWeb(R) (http://www.travelweb.com) Internet site and other Web sites that use Pegasus Systems' NetBooker(TM) service.

In addition, The Paris Hotel and The Mandelay Bay, each scheduled to open in spring 1999, will participate in Pegasus Systems' online hotel database. LVRS' 30 hotel clients will go online with Pegasus Systems' TravelWeb(R) and NetBooker(TM) sites during the third quarter of this year. Consumers will be able to shop and query room availability, read detailed property descriptions, view photographs and make reservations online 24 hours a day. According to Tim Poster, president of Las Vegas Reservation Systems, the company views the Internet as a valuable resource for cost effectively expanding hotel distribution. "As a wholesaler, we understand the value of a good deal and the Internet represents one. Online bookings offer an affordable channel for distributing hotel inventory and we believe the Internet will play a significant role in helping us to surpass the 200,000 room nights milestone in 1998," Poster said. According to the American Society of Travel Agents, Las Vegas has been recognized as the number one U.S. tourist "hot spot" with visitation levels expected to increase 3.5 million by 2000. Representing most of Las Vegas' major casino hotels, a sampling of LVRS' clientele includes:
 

John F. Davis, III, Pegasus Systems' president and chief executive officer, noted the perfect match between LVRS and Internet reservations. "Consumers surfing the Web for travel are generally looking for the best available rate. LVRS' wholesale rates are a natural fit for online bookings, and Pegasus Systems' extensive distribution network opens the door to a substantial opportunity for LVRS' hotel members to reach millions of consumers worldwide," Davis said.

As a result of joining Pegasus Systems' NetBooker(TM) service, LVRS' hotels also will be available for online booking on:
 
 

Pegasus Systems' NetBooker(TM) reservation service provides third-party Web sites with direct access to the same extensive hotel database and hotel reservation and confirmation capabilities provided by Pegasus Systems' consumer retail site, TravelWeb(R). The advanced technology enables users of the third-party Web sites with the ability to access information on more than 21,000 hotels in 150 countries and provides them with the ability to shop and query room availability, view photos, and make a reservation online and receive a confirmation in seconds.

According to the Travel Industry Association, TravelWeb(R) is one of the six "mega-sites" that account for 75 percent of all travel-related sales on the Internet. Created in 1994, TravelWeb(R) currently receives an average of 44,000 visitors per day. During the first three months of 1998, Internet hotel bookings made through TravelWeb(R) and Pegasus Systems' NetBooker(TM) sites have resulted in an estimated $24 million in hotel room sales. Bookings in the first quarter of 1998 increased 46 percent from the fourth quarter of 1997.

Company Information

Las Vegas Reservation Systems (LVRS) offers special rates for Las Vegas hotels, air and car companies.  LVRS operates a toll-free call center and its own Web site (http://www.lvrs.com) for processing reservations and is a leading independent wholesaler in Las Vegas, representing all major Las Vegas casino hotels.  In 1997, the company produced more than 150,000 room nights and $12.5 million in revenue.

Pegasus Systems, Inc. provides global electronic commerce and transaction processing solutions to hotels, travel agencies, meetings and convention planners, corporate travel departments and Internet businesses around the world via its services that include: THISCO(TM), HCC(TM), TravelWeb(R), NetBooker(TM) and Pegasus IQ(TM). Pegasus Systems has its headquarters in Dallas and offices in London. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.