The renewals include the hotel groups� use of Pegasus� world-class electronic distribution architecture for reaching Internet channels and global distribution systems (GDSs) for visibility among high volume Web sites and travel agencies.  Marco Polo, Meritus and Taj Hotels also have access to Pegasus� global network of central reservation offices and call centers. 

�Since our initial agreement with Pegasus in 1995, we�ve been extremely pleased with Pegasus� overall performance and the value of its services,� said Himanshu Singh, manager of global distribution for Taj Hotels Resorts and Palaces.  �With Pegasus� assistance, we�ve seen a dramatic increase in business from GDS and Internet channels, particularly in the last two years.  The contract extension reflects our confidence in Pegasus� ability to explore solutions to assist us in becoming a pioneer in the Asia Pacific region.�

Reaping Revenue Results
            
Through their established relationships with Pegasus, Marco Polo, Meritus and Taj Hotels have enjoyed significant performance gains in reservations revenue.  These successes include:

Marco Polo Hotel Group (Pegasus customer since 1998; GDS chain code MH): 

• Realized 81 percent growth in revenue YTD October 2004, compared to same period in 2003 

• Experienced 119 percent increase in revenue YTD October 2004, over the same period last year 

• Achieved 72 percent escalation in revenue YTD October 2004, compared to same period in 2003

�The flexibility of Pegasus� private label offering enables small to medium-sized hotel groups to secure critical access to key electronic channels, while preserving their unique brand identity.  They can maintain their own GDS chain code while benefiting from their choice of Pegasus� marketing services and programs,� said Christine Tan, vice president of service delivery for Pegasus Solutions - Asia Pacific.  �Many hoteliers in the Asia Pacific region, where Pegasus has more than 900 hotel customers, consider Pegasus� private label offering a vital component of their hotel marketing mix.  They�ve experienced a direct correlation between adopting Pegasus� private label service and realizing significant growth in their hotel bookings and revenues.�

Company Information

Asia-based Marco Polo Hotel Group is one of the leading hotel brands in the region and has built a solid platform for growing its Asian network of quality hotels.  Owned by The Wharf (Holdings) Ltd., a prestigious Hong Kong public company, the Marco Polo Hotel Group has a portfolio of nine properties, including four in China, three in Hong Kong, one in the Phillipines, and one in Vietnam.  Over the next four years, Marco Polo Hotel Group plans to develop and operate an additional five to seven prestigious hotels in prime locations that are complementary to its existing network.  For more information about Marco Polo Hotel Group, visit www.marcopolohotels.com

Owned by Overseas Union Enterprise Ltd (OUE), Meritus Hotels & Resorts is a Singapore-based hotel management company that has been managing and operating deluxe city and resort hotels for nearly 30 years.  Meritus is also represented in the GDS by its own private label code, GM.  Within the Group, Meritus Hospitality Services (MHS) is the division that manages serviced apartments and other catering-related businesses.  Meritus Hotels & Resorts is one of the five Founding Members of Asian Hotels Alliance.  Together with Dusit Hotels & Resorts of Thailand, Landis Hotels and Resorts of Taiwan, Marco Polo Hotel Group of Hong Kong and New Otani Hotels of Japan, Meritus Hotels & Resorts now offers instant reservations at over 70 hotels in and beyond the Asia Pacific region.  For more information, visit www.ahahotels.com.  For more information about Meritus Hotels & Resorts, visit www.hotels.meritus-hotels.com

Established in 1903, Taj Hotels Resorts and Palaces is one of South Asia�s largest and finest group of hotels.  >From world-renowned landmarks to modern business hotels, idyllic beach resorts to authentic Raiput palaces, Taj Hotels is comprised of 57 hotels in India and an additional 13 international properties in the Maldives, Mauritius, UK, Nepal, Sri Lanka, Africa and the Middle East.  Each Taj hotel offers unrivalled fusion of warm Indian hospitality, world-class service and modern luxury.  The Taj, a symbol of Indian hospitality, has recently completed the centenary of its flagship hotel, The Taj Majal Palace and Tower, Mumbai.  Taj Hotels Resorts and Palaces is part of the Tata Group, India�s premier business house.   For more information, visit the Taj Web site at www.tajhotels.com

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 nearly 8,000 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

This statement contains references to future events and projected results, including anticipated transactions involving the Company and its service offerings.  There can be no assurance that the referenced future events or projected results will actually occur or that the future financial performance of the Company will be as projected.  Actual occurrences, results and performance may differ substantially and materially from those projected as a result of a number of risks and uncertainties, such as adverse changes in general market conditions for business and leisure travel as a result of additional terrorist activities, action by U.S. military forces, changes in hotel room rates, capacity adjustments by airlines, trends in the overall demand for travel, and the inherent difficulty in making projections during this period of uncertainty, as well as other risks and uncertainties mentioned in this statement or detailed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2003. 

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