Pegasus Solutions

DALLAS – Pegasus Systems, Inc. PEGS, a leading worldwide provider of hotel industry transaction processing and electronic commerce services, today announced that its board of directors has approved a three-for-two split of its common stock to be effected in the form of a stock dividend. The Company's transfer agent, American Securities Transfer & Trust, Inc. will distribute the additional shares on or about January 7, 2000, to shareholders of record at the close of business on December 20, 1999.

Each holder of the Company's common stock will receive a stock dividend at the rate of 1/2 share of common stock for each share of common stock owned. Shareholders will not be entitled to receive any resulting fractional shares, but will receive the value of any fractional shares in cash. The stock split will increase the number of shares outstanding from approximately 13.5 million to approximately 20.2 million shares.

Dallas-based Pegasus Systems (www.pegsinc.com) provides electronic commerce and transaction processing solutions to the hotel industry and operates its own consumer travel reservations site, TravelWeb.com (www.travelweb.com). The Company is the premier electronic switching service for reservations processing, which allows central reservation systems to connect seamlessly to global distribution systems (GDS) and/or to the Internet with a single electronic interface. Its Pegasus Commission Processing service is the largest provider of travel agent commission payment processing services and, through its Pegasus Business Intelligence service, the Company provides data mining and database marketing consulting services. Pegasus' customers include eight of the 10 largest U.S.-based travel agencies, as well as approximately 32,000 hotel properties around the world. Pegasus generated revenue of $27.6 million for the first nine months of 1999.

Michael Brophy
(214) 234 4400
Pegasus