Hospitality Net

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 In response, Pegasus announced today that it has withdrawn its intent to continue in the bidding process.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."

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.

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 a number of risks and uncertainties, such as adverse changes in general market conditions for business and leisure travel as a result of additional terrorist activities, action by U.S. military forces, changes in hotel room rates, capacity adjustments by airlines, trends in the overall demand for travel, and the inherent difficulty in making projections during this period of uncertainty, as well as other 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, 2001.