Pegasus Solutions

DALLAS & LONDON -- At World Travel Market 2002, stand #GV290, in London, Pegasus Solutions, Inc. PEGS announced it has signed a commission processing agreement with TQ3 Travel Solutions. As a result, 100 percent of TQ3's 900-plus locations in nearly 40 countries throughout Europe, the Middle East and Africa have been enrolled in the Pegasus Commission Processing service. Pegasus Commission Processing is one of the European hotel industry's leading travel agent commission processing services, with eight of the largest U.K.-based travel agencies as subscribers(1). Dallas-based Pegasus Solutions, a leading worldwide provider of hotel reservations-related services and technology, created Pegasus Commission Processing in 1992.

Under the three-year agreement, all TQ3 Travel Solutions locations in Europe, the Middle East and Africa (EMEA) are expected to outsource to Pegasus the collection and management of their hotel commissions worldwide. TQ3's new contract with Pegasus follows that of TQ3 Americas, which joined Pegasus Commission Processing in 2001. With the inclusion of the EMEA locations in the Pegasus service, Pegasus now counts nearly all TQ3 offices worldwide as customers.

Pegasus' flexible service enables TQ3 locations to receive consolidated hotel commissions in their preferred currencies along with detailed reporting of guest stays, cancellations and no-shows by hotel brand.

According to Thomas Stockel, vice president of supplier relations for TQ3 Travel Solutions, tapping Pegasus enables the growing travel giant to be more proactive in collecting commissions from hotels worldwide, while also providing a new source of valuable hotel data. "The value of a centrally controlled commission management program benefits all TQ3 locations," Stockel said.

Stockel continued, "Pegasus' global commission collection service complements TQ3's 'Hotel Program Project' that has strived to establish standards for TQ3 locations across the EMEA region. By subscribing to the Pegasus Commission Processing service, TQ3 raises the bar on managing hotel relationships and commission revenues."

"With Pegasus' established relationship with TQ3 Travel Solutions in the United States and the majority of TQ3 locations in Asia Pacific, the addition of TQ3 EMEA brings us very close to securing the entire agency portfolio of one of the world's largest and fast-growing travel management firms," said Jeff Bzdawka, senior vice president of Pegasus Financial Services. "Today's commission landscape requires a centralized, cost-effective, flexible and analytical management solution that's global in scope. Pegasus continues to be recognized worldwide for fully delivering on this critical need."

Pegasus Commission Processing (formerly HCC): How it Works

Each month on behalf of TQ3 Travel Solutions, Pegasus collects hotel participants' actual guest stay information related to hotel bookings made by TQ3's travel professionals. After consolidating all participating hotel properties' information and commission payments, Pegasus forwards a consolidated commission payment from participating hotels directly to TQ3 and sends detailed reports to designated locations and corporate headquarters.

In addition, TQ3 locations can elect to use expanded automated commission management through Pegasus' Electronic Reconciliation & Tracking service. The innovative service helps TQ3 to obtain a complete picture of monthly hotel commission revenues by electronically reconciling all commission data and all hotel reservations. TQ3 locations also benefit from Pegasus' highly responsive customer service support. More than 70 percent of queries are serviced and resolved while agents are on the phone with Pegasus.

With more than 24,000 travel agency customers in the EMEA region, Pegasus Commission Processing counts the majority of the world's travel agencies and 35,000 hotel properties among its subscribing members. For more information about Pegasus Commission Processing, travel agencies or hotels in the EMEA region can call +44 (0) 208 490 5837 or e-mail [email protected].

Company Information

TQ3 Travel Solutions (), with global headquarters in Bremen, Germany, and EMEA-APAC headquarters in London, United Kingdom, is the quality provider of innovative end-to-end travel expense management solutions worldwide. Operating in over 60 countries with system-wide revenues in excess of $9 billion, TQ3 Travel Solutions employs more than 12,000 staff in 1,600 locations.

Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading provider of hotel reservations-related services and technology. Its services include central reservations systems (CRS); electronic distribution services that connect more than 44,000 hotels to the Internet and to the global distribution systems (GDS); travel agent commission processing and payment services; the Utell marketing and reservation representation service (www.Utell.com); and PegasusCentral(TM), a Web-based enterprise solution with property management applications. Pegasus' customers comprise the majority of travel agencies around the world, including the top 10 largest U.S.-based travel agencies(2); more than 48,000 hotel properties around the globe, including all of the 50 largest hotel brands in the world based on total number of guest rooms(3); and thousands of Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 20 offices in 11 countries, including regional hubs in Phoenix, London and Singapore. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.

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. Forward-looking statements include statements regarding future events, financial performance and financial projections, as well as management's expectations, beliefs, hopes, intentions or strategies regarding the future. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from current expectations. Factors that could cause or contribute to such difference include, but are not limited to, terrorist acts or war, variation in demand for and acceptance of the company's products and services and timing of sales, general economic conditions including a slowdown in technology spending by the company's current and prospective customers, failure to maintain successful relationships with and to establish new relationships with customers, the success of the company's international operations, the level of product and price competition from existing and new competitors, changes in the company's level of operating expenses and its ability to control costs, delays in developing, marketing and deploying new products and services, as well as other risks identified in the company's Securities and Exchange Commission filings, including those appearing under the caption Risk Factors in the company's 2001 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed since the Annual Report.

1 Business Travel World, April 2002, "The Leading 100 League Table"
2 Travel Weekly, June 24, 2002, "Top 50 Travel Agencies"
3 Hotel Business, February 7, 2002, "The Top Hotel Brands" - ranked by total number of rooms (2001)

Michael Brophy
(214) 234 4400
Pegasus