Pegasus Solutions Expands Relationship with La Quinta
via Commission Processing Services for
Baymont Inns & Suites
DALLAS - Sept. 28, 2004 -- Pegasus Solutions, Inc. (Nasdaq:PEGS) announced the expansion of its longtime relationship with the La Quinta Corporation (NYSE:LQI). With La Quinta's September purchase of 177 Baymont-branded properties, more than 550 hotels in the La Quinta family now use Pegasus' commission processing services, the hotel industry's leading travel agent commission processing service. Dallas-based Pegasus is a leading worldwide provider of hotel reservations-related services and technology.

Pegasus is processing commissions for all travel agent bookings made at Baymont Inns & Suites beginning September 3, 2004. Pegasus' recent implementation marks the first time that Baymont hotels are using consolidated commission processing services, reinforcing La Quinta's commitment to the timely payment of commissions to travel agents.

The Pegasus service handles the centralized processing and consolidated payment of commissions to Pegasus member travel agencies worldwide on behalf of all hotels in the La Quinta family. In addition to the Baymont Inns & Suites, seven Woodfield Suites and one Budgetel hotel acquired in the Baymont deal are also using Pegasus commission processing.

"Pegasus' proven commission processing services have enhanced La Quinta's relationship with the travel agency community since 1992," said Jackie Burke, vice president of reservation services for La Quinta. "Pegasus' ability to quickly implement the Baymont properties was a critical part of our integration plan, and we're pleased to inform agents that they can count on getting Baymont commissions in the same consistent manner that they've received La Quinta commissions."

Eight of the world's top 10 hotel companies participate in the Pegasus commission processing service. In total, more than 35,000 hotels worldwide participate in the Pegasus commission processing service, enabling the efficient payment of hotel commissions to Pegasus' member travel agencies. Pegasus counts the majority of the world's travel agencies in more than 200 countries among its subscribing members.

Using checkout data extracted from La Quinta's and Baymont's property management system, Pegasus consolidates monthly guest-stay information related to bookings made by travel agencies. Through this service, Pegasus drastically reduces manual work by back-office staff to make commission payments.

Pegasus consolidates La Quinta hotel information and commission payments with similar information and payments from other participating hotels. Pegasus then sends detailed reports and a consolidated commission payment to agencies in their choice of currency.

"La Quinta values its relationships with travel agents that drive bookings, and we're pleased to support those relationships with our commission processing services," said Bob Boles, executive vice president of sales and marketing for Pegasus Solutions. "The expedient implementation of Baymont Inns & Suites is a testament to the high level of communication, planning and execution by both Pegasus and La Quinta staff. We look forward to the continued growth of our relationship with this longtime client."

About La Quinta

La Quinta Corporation (NYSE:LQI) is one of the largest owner/operators of limited-service hotels in the United States. Based in Dallas, Texas, La Quinta owns, operates or franchises more than 550 hotels in 39 states under the La Quinta Inns(R), La Quinta Inn & Suites(R), Baymont Inns & Suites(R), Woodfield Suites(R) and Budgetel(R) brands. For reservations or more information about La Quinta, its brands or franchising program, please visit www.LQ.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 services, including Utell by Pegasus and Unirez by Pegasus, are used by more than 7,500 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.
Phone:  214-234-4400

Campbell Centre I
8350 North Central Expressway
Suite 1900
Dallas, Texas 75206

Also See: Pegasus Solutions Processing Travel Agent Commissions Worldwide for Hilton International / August 2004
Pegasus Solutions Speeds RFP Process for Utell by Pegasus Member Hotels Via Deployment of New Lanyon Technology / July 2004
Pegasus Solutions Providing Global Internet Distribution Services for Accor Hotels / June 2004
Pegasus Announces New Customers for PegsTour™ Service and New Agreements from Its Hotel Company Customers / June 2004
Pegasus Announces Plans for Newest Version of its NetBooker™ Booking Engine for Hotel and Travel Portal Web Sites / June 2004
Pegasus Solutions Providing Electronic Distribution Services to Seminole Hard Rock Hotel & Casino Properties in Florida; Automated Connectivity Delivers Real-time Reservations Via GDSs and the Internet / May 2004

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