DER Group Selects Pegasus Solutions’ Electronic Distribution Services to Launch New European Travel Web Site
Introduction of www.derhotel.com Coincides With Multi-Service Contract
Extension; Pegasus Providing Distribution & Financial Services to
German Company Through 2007

DALLAS (November 10, 2004) - Pegasus Solutions, Inc. (Nasdaq: PEGS) today announced that Germany-based DER Group, including the prominent tour operator DERTOUR and travel agency chains DER and DER Business Travel, is using Pegasus’ electronic distribution services to channel live hotel inventory to its new travel Web site, www.derhotel.com.  Pegasus’ electronic distribution services provide direct access to live inventory, rates and images from nearly 60,000 hotels worldwide, giving travelers real-time availability.  The Web site, targeting both corporate and leisure travelers with net and negotiated rates, was introduced to European travelers in September.

The launch of www.derhotel.com is yet another milestone in the longstanding business relationship between DER and Pegasus.  DERTOUR was one of the first European agencies to become a member of Pegasus’ hotel commission processing service - joining in 1995.  The 4,000 independent hotels in the Utell by Pegasus portfolio have enjoyed preferred status with DERTOUR agencies since 1996.  DER recently signed a contract extension with Pegasus through 2007.

The DER group belongs to the REWE Groups Travel Division.  With sales of over $4.1 billion Euros in 2003, REWE is one of the largest travel groups in Europe. Dallas-based Pegasus Solutions is a global leader in providing technology and services to hotels and travel distributors.

“Pegasus Solutions has been a valued collaborator in growing and managing our travel businesses for nearly a decade,” said Jochen Rathei, director of corporate/customized hotel programs at DERTOUR.  “With the connection to Pegasus’ database of hotels powering the new Web site, we are delivering superior content to our audience at sustainable costs for DER.  And Pegasus’ robust infrastructure and backup capabilities give us confidence that online bookings made on www.derhotel.com will be quickly processed 24 x 7.”

DERTOUR agents annually rank among the top bookers of Utell by Pegasus member hotels.  With Utell members having preferred status, Utell member bookings from DERTOUR have risen by 20 percent in the first nine months of 2004.  “The depth of the Utell portfolio, including critical components like airport hotels for business travelers and resorts for holiday seekers, truly complements our client base,” said Rathei.

In addition to distribution services, Pegasus now provides DER complete hotel commission management.  Pegasus captures and consolidates the participating hotel properties’ information and commissions and sends detailed reports and consolidated commission payments to DER in its choice of currency.  Pegasus also reconciles reservations for every single hotel booked by DER regardless of whether or not the hotel is a participant in Pegasus commission processing. 

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.  A majority of the world’s travel agencies subscribe to this Pegasus service.

“DER has long been one of our most innovative clients,” said Bob Boles, executive vice president of sales and marketing for Pegasus Solutions.  “We’re pleased to expand our relationship through the deployment of our electronic distribution services, and we look forward to assisting DER with its daily travel business processes for years to come.”

Company Information

About DER Group
The Deutsches Reisebüro (DER) group, with the tour operator DERTOUR and its own DER leisure travel agencies and DER Business Travel/Synergi Germany agencies was founded in 1917 in Berlin.  The group is one of the most experienced companies in the international tourism industry. The products of DERTOUR are very much focused on the individual necessities of the customers and are advanced and optimised year by year. The result: DERTOUR is one of the biggest tour operators in Germany. In some areas like City Breaks, Event-Travel, as well as the outbound travel to North America and Ireland, DERTOUR is a market leader. DER is part of the Travel Division of Rewe <http://www.rewe.de/>, which is one of the leading travel related companies in Germany.  For more information, please visit www.der.net.

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 Pegasusä and Unirez by Pegasusä, 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.


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

Also See: Pegasus Solutions Introduces Weekly Hotel Commission Processing for Travel Agents / November 2004
Pegasus Solutions Extends Hotel Commission Processing Contract with Hyatt Hotels & Resorts / October 2004
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Pegasus Solutions Processing Travel Agent Commissions Worldwide for Hilton International / August 2004
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