Predicated by Canadian disclosure requirements, on May 17, 2002, Pegasus announced it had initiated efforts to acquire HARS at a cash price of $0.62 CAD per share. On May 24, 2002, Trimin Capital Corporation announced a competitive bid, increasing its offer to acquire all outstanding HARS shares. In response, Pegasus announced today that it has withdrawn its intent to continue in the bidding process.

Commenting on Pegasus' decision to no longer pursue a potential acquisition of HARS, Pegasus Solutions Chief Executive Officer and Chairman of the Board John F. Davis, III said, "At our original offer price, HARS and its VIP subsidiary was an attractive acquisition target, but the competing bid and our further analysis of HARS' business fundamentals led us to the conclusion that we could not justify offering a higher bid to top Trimin's new offer. However, we will continue to stay focused on finding and carefully analyzing appropriate acquisition candidates to supplement Pegasus' continued growth."

COMPANY INFORMATION

Dallas-based Pegasus Solutions, Inc. (www.pegs.com ) is a leading global provider of hotel reservation technologies. Its services include central reservations systems; electronic distribution services that connect more than 42,000 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 tens of thousands of travel agencies around the world, including the top 10 largest U.S.-based travel agencies(1); more than 46,000 hotel properties around the globe, including all 50 of the 50 largest hotel brands in the world based on total number of guest rooms(2); and thousands of Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 22 offices in 16 countries, including regional hubs in Phoenix, London and Singapore. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.

• (1) Travel Weekly, June 25, 2001, "Top 50 Travel Agencies"(2) Hotel Business, February 7, 2002, "The Top Hotel Brands" _ ranked by total number of rooms (2001)