Forbes Magazine Names Pegasus Solutions to 200 Best Small Companies List

Forbes employed strict criteria in considering public corporations for the 200 Best Small Companies list. Companies were selected based on the following requirements:

• 12-month sales of $5 million to $600 million;
• a stock price above $5 per share;
• a five year average return on equity of at least 5%;
• a net profit margin of 5% over the last twelve months; and
• relative stock price strength relative to peers and market indexes.

Formed in 1989, Pegasus is an integral component of the evolving hotel industry, touching hundreds of thousands of reservations-related transactions every day. The company's services include:

• central reservation systems used by more than 9,000 properties;
• third-party marketing and reservation representation services for nearly 5,000 hotels;
• electronic distribution services that connect more than 44,000 hotels to the Internet and to the global distribution systems (GDS);
• commission processing and payment services utilized by the top 10 travel agencies in the United States1 and more than 35,000 properties worldwide; and
• the new PegasusCentral(TM) Web-based property management service.

Pegasus has grown from an office of five people in Dallas in 1989 to a staff of more than 1,500 worldwide. Pegasus has 20 offices in more than 11 countries, including regional hubs in Phoenix, London and Singapore.

In addition the 200 Best Small Companies honor from Forbes, Pegasus also was also recently named to Deloitte & Touche's Fast 500 List, which recognizes the fastest growing technology companies in Canada and the United States. The Fast 500 is based on percentage increase in operating revenues from years 1997 to 2001. Both the 200 Best Small Companies and Fast 500 lists can be found on .

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 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 tens of thousands of travel agencies around the world, including the top 10 largest U.S.-based travel agencies(1); 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(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 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.