Pegasus Solutions Expands Relationship with Canadian Pacific Hotels & Resorts Inc. with Travel Agent Commission Processing Service

Canadian Pacific Hotels & Resorts Inc. is one of Canada's largest hotel management companies and operates more than 30,000 hotel rooms under the prestigious Fairmont and Delta hotel brands in Canada, the United States, Mexico, Bermuda and Barbados. In October, Pegasus began processing travel agent commissions on behalf of select CPH&R Inc. properties, and all of the company's hotels are scheduled to be live with the centralized commission service by the end of first quarter 2001. A sampling of world-famous CPH&R Inc. hotels includes The Plaza in New York City, The Fairmont San Francisco, and The Fairmont Scottsdale Princess in the United States, as well as Delta Chelsea Toronto, Delta Centre-Ville Montreal, Banff Springs, and Le Chateau Frontenac in Canada.

According to Danny Araujo, operations controller for Fairmont and Delta branded hotels, the company's portfolio necessitates a central-pay process be adopted, and Pegasus is the natural choice for getting the job done efficiently and economically. "With the Fairmont and Delta branded properties in our hotel portfolio, we've doubled in size. Travel agents generate about 20 percent of our hotel bookings. Centralizing the payment of our travel agent commissions not only is critical from an operations management standpoint, but from a travel agent partnership perspective," Araujo said. "We are very mindful that more than 100,000 travel agencies worldwide prefer to be paid through Pegasus Commission Processing. Through our relationship with Pegasus, we will be able to realize the benefits of outsourcing the commission process, while also enhancing customer service to our travel agent partners."

Araujo continued, "We have a solid relationship with Pegasus and are pleased that our multiple technology needs, from the latest hotel electronic distribution technologies to centralized commission management, can be met through one provider -- Pegasus."

With an electronic interface to each participating Fairmont and Delta hotel's property management system, Pegasus will collect from these hotels on a monthly basis actual guest stay information related to hotel bookings made by travel agents. After consolidating all hotels' information and commission payments with the other Pegasus participating hotels, Pegasus will send a consolidated commission payment to its member travel agencies worldwide. The more than 100,000 travel agency locations in 207 countries that subscribe to Pegasus' service also can receive detailed reporting of actual guest stays, cancellations and "no shows" and can elect to receive total automated commission management through Pegasus' Electronic Reconciliation & Tracking service. Today, Pegasus processes in excess of $42 million in hotel commissions per month from more than 100 hotel companies in 159 countries. Twenty-three of the top 25 hotel brands worldwide participate in the Pegasus Commission Processing service(1).

"We are confident our member travel agencies will be pleased with the prestigious addition of Fairmont Hotels & Resorts and Delta Hotels," said Jeff Bzdawka, senior vice president of Pegasus Financial Services. "Our relationship with Fairmont and Delta is a prime example of how hotel companies are turning to Pegasus for one-stop shopping for their diverse technology product and services needs."

Company Information

Toronto-based Canadian Pacific Hotels & Resorts Inc. (www.cp.ca) is one of Canada's largest hotel management companies operating 71 properties with over 30,000 rooms in Canada, the United States, Mexico, Bermuda and Barbados. It holds a 67 percent controlling interest in Fairmont Hotels & Resorts, North America's largest luxury hotel management company. Fairmont Hotels manages 36 distinct city center and resort hotels such as The Plaza in New York City, The Fairmont San Francisco, Banff Springs, Le Chateau Frontenac and The Fairmont Scottsdale Princess. It also holds a 100 percent interest in Delta Hotels Limited, which manages a portfolio of 35 first-class urban and resort properties across Canada. In addition to hotel management, Canadian Pacific Hotels & Resorts Inc. holds real estate interests in 20 properties and a 34 percent investment interest in the Legacy Hotels Real Estate Investment Trust, which owns 19 hotels.

Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading provider of end-to-end reservation distribution solutions to the hotel industry worldwide. Its services include central reservations systems; third-party marketing and reservation representation services, including Utell, Summit Hotels & Resorts, Golden Tulip Worldwide, and Sterling Hotels & Resorts; electronic distribution services that connect more than 37,000 hotels to the Internet and to the global distribution systems (GDS); commission processing and payment services; the consumer travel Web site TravelWeb.com (www.travelweb.com); data warehousing and database marketing and consulting services; and soon, a Web-based property management system. Pegasus' customers comprise more than 100,000 travel agencies around the world, including nine of the 10 largest U.S.-based travel agencies(2); approximately 39,000 hotel properties around the globe, including 18 of the 20 largest hotel companies in the world based on revenues and total number of guest rooms(3); and more than 240 Web sites/services have contracted to have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 39 offices in 25 countries, including regional hubs in Phoenix, London and Singapore. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.

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 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, 1999, and its Form S-4 (File No. 333-92683) that was declared effective March 31, 2000.

(1) Lodging Hospitality, August 2000, "Hotel Brand Report"

(2) Travel Weekly, June 26, 2000, "Top 50 Travel Agencies"

(3) Business Travel News, May 29, 2000, "The Top Hotel Companies"