Canadian Pacific Hotels Signs With Pegasus Systems

Dallas (April 26, 1999) - Pegasus Systems, Inc. PEGS today announced it has signed Canadian Pacific Hotels, a division of Canadian Pacific Limited CP, to use the Pegasus Electronic Distribution service (formerly known as THISCO(R)) to process computerized reservations made by travel agents. Canadian Pacific Hotels is one of Canada's largest owner-operators of full-service hotels, and Pegasus is a leading provider of hotel industry transaction processing and electronic commerce services.

By tapping Pegasus' GDS (global distribution system) connectivity, Canadian Pacific Hotels provides travel agents around the world with the ability to electronically book rooms at any of its 34 luxury hotels, representing 15,000 rooms in five countries. With the recent acquisition of Princess Hotels, Canadian Pacific Hotels is one of the largest destination resort operators in North America.

"Pegasus is uniquely able to provide us with the latest GDS and Internet reservations technology solutions in the hotel industry," said Warren Markwart, vice president of revenue management for Canadian Pacific Hotels. "By tapping the Pegasus Electronic Distribution service, we will have the technology in place to expand our relationship with Pegasus and take advantage of its other services, such as receiving Internet bookings through Pegasus' online distribution network, which includes TravelWeb.com (www.travelweb.com). We also look forward to expanding our data warehousing strategy with Pegasus Business Intelligence."

Pegasus Electronic Distribution provides hotels with connections to all of the major GDSs, including Sabre (R), Galileo®, Amadeus/System One® and Worldspan®. Travel agents using the access code "CP" on the GDS terminals will be able to obtain accurate and up-to-date room availability and rates for all Canadian Pacific Hotels.

Pegasus Systems has solid roots in the hotel industry. Sixteen of the world's leading hotel and travel-related companies formed the company in 1988. Today, Pegasus processes approximately 100,000 net reservations per day for 115 hotel companies representing more than 27,000 hotel properties around the world.

According to Doug Carr, director of marketing services at Canadian Pacific Hotels, the agreement reflects the hotel chain's desire to leverage the latest hotel distribution technologies. "We were attracted to Pegasus' reservation distribution technology, which is quickly becoming the industry standard. Pegasus' distribution strategy and its reputation for service and support are unparalleled," Carr said.

Pegasus Systems' president and chief executive officer, John F. Davis III, said, "Representing one of the largest collections of landmark hotels in the world, Canadian Pacific Hotels is a prestigious addition to our hotel roster. Quickly becoming a leader in the industry, Canadian Pacific Hotels is known for its strategic approaches to the latest developments in hotel technology. We hope our comprehensive technology offerings can be an asset to the company's growth strategies."

Company Information

Canadian Pacific Hotels is one of Canada's largest hotel companies with 34 distinctive city centre and resort properties in Canada, United States, Mexico, Bermuda and Barbados. For more information on Canadian Pacific Hotels, call central reservations at 800-441-1414 or visit the Web site at .

Pegasus Systems, Inc. (www.pegsinc.com) provides global electronic commerce and transaction processing solutions to hotels, travel agencies, meetings and convention planners, corporate travel departments and Internet businesses around the world. Pegasus' customers include nine of the 10 largest hotel companies in the world. Pegasus Systems has its headquarters in Dallas and offices in London. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.