DALLAS (May 20, 2003) � Pegasus Solutions, Inc. (Nasdaq: PEGS), a leading processor of Internet and global distribution system (GDS) hotel reservations, recorded a post-9/11 milestone number of hotel bookings earlier this month.  On May 6, 2003, Pegasus processed more electronic hotel reservations than it did on September 10, 2001, the day before the terrorist attacks on the United States. 

�It is remarkable that it took 20 months after the attacks, and the numerous aftereffects, for the hospitality industry to see booking totals remotely familiar to those recorded in summer 2001,� said John F. Davis III, chairman, chief executive officer and president of Pegasus Solutions.

On another positive note, May 2003 GDS bookings � hotel reservations made by traditional travel agents � processed by Pegasus are on pace with figures from May 2002.  This is the first month in 2003 where GDS bookings are running parallel to those recorded in 2002. 

�While three weeks certainly does not make a trend, seeing these numbers gives us hope that we�ve reached bottom and things are looking up for both hotels and the travel industry in general,� said Davis.  �These statistics are particularly encouraging in light of our April totals, which, due to the war in Iraq and SARS, were drastically off from April benchmarks in recent years.�

Dallas-based Pegasus Solutions, Inc. is a leading global provider of hotel reservations related services and technology. 

The statements made in this press release that are not purely historical are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.