AAA Travel Renews Hotel Commission Processing Agreement with Pegasus Solutions
-- Contract with America’s Largest Leisure Travel Agency Covers More Than 1,000 Locations --
DALLAS, Texas (April 27, 2005) - Pegasus Solutions, Inc. (Nasdaq: PEGS) signed a contract extension with AAA Travel to continue providing hotel commission consolidation and processing services to the prominent U.S. agency.  One of the global leaders in providing technology and services to hotels and travel distributors, Pegasus facilitates payments to travel agencies from more than 40,000 hotels around the world.  AAA Travel is the nation's largest leisure travel agency, providing its 48 million members with travel, insurance, financial and automotive-related services at more than 1,000 locations across the U.S. and Canada.

AAA’s decision to extend its contract solidifies Pegasus’ position as the leader in delivering consolidated commission payments to large-scale travel agencies and consortia.  The top 10 U.S.-based agencies, including online and traditional agencies, are members of Pegasus Commission Processing. 

“Since we joined Pegasus Commission Processing in 2001, nearly 70 percent of AAA agencies have elected to take advantage of Pegasus’s proven services,” said Sandra Hughes, vice president of AAA Travel.  “With Pegasus’ consolidated payments and detailed reporting, our agencies save significant time on back-office accounting tasks and can focus on providing better service to AAA members.”  Pegasus processed nearly $9 million in commission payments to AAA agencies in 2004, a 10 percent increase over 2003. 

To perform the service, Pegasus collects hotel participants’ actual guest stay information from hotel bookings made by AAA’s travel agents.  Pegasus captures and consolidates the participating hotel properties’ information and commissions, sending detailed reports and consolidated payments each week to AAA.

As part of its Pegasus Commission Processing service, Pegasus provides highly responsive customer service support for travel agencies, with more than 70 percent of queries resolved while agents are on the phone with Pegasus.  The majority of the world’s travel agencies, including more than 25,000 U.S. agencies, are members of Pegasus Commission Processing.

About Pegasus Solutions
Dallas-based Pegasus Solutions, Inc. (Nasdaq: PEGS) is a global leader in providing technolog
y 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.

About AAA
As North America’s largest motoring and leisure travel organization, AAA provides its 48 million members with travel, insurance, financial and automotive-related services, and member-only savings. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers.  AAA Travel’s more than 1,000 full-service travel agency locations serve members and other clients across the United States and Canada. With more than $3 billion in sales in 2004, AAA is the nation’s largest travel agency dedicated to leisure travelers.


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

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