Utell Expands Representation Services Contract with New York's Park Central Hotel

Under the agreement, Utell is providing a package of reservations services, providing Park Central with the capabilities to accept reservations whether via voice, GDS, or the Internet. In addition, Park Central's Web site at will be "Powered by Pegasusä," using Utell's NetBookerä Link online booking engine. Through its worldwide network of reservation offices/call centers, Utell is now taking phone reservations on behalf of Park Central; through Utell's GDS representation, Park Central can now accept electronic reservations from travel agents around the world; and through Utell's Internet distribution, Park Central can now be booked online at www.hotelbook.com, Utell's bookable Web site; as well as through Pegasus Solutions' TravelWeb.com® (www.travelweb.com) and the other sites in Pegasus' Online Distribution Network, such as Expedia.com and GL Network's HotelWeb.co.kr.

According to Michael Heller, director of sales and marketing for The Park Central Hotel, the expanded relationship with Utell has already made a positive impact in Park Central's ability to attract a broader customer base and increase overall reservations. "We feel our relationship with Utell is proving itself hand over fist," Heller said. "Since completing the renovation of the hotel and implementing Utell's expanded services, we have experienced a hike in corporate traveler business and an increase of almost 10 percent in revenue."

Conveniently located in midtown Manhattan, the newly remodeled Park Central features 935 new guest rooms and a renovated lobby, restaurant and lounge. Guest rooms include two-line, direct-dial speakerphones with data ports; voice mail and conference capability; Nintendo and movies on demand; iron and ironing boards; and expanded bathrooms and in-room safes. In addition to providing a variety of boutiques and shops, conference facilities, fitness center, and a 24-hour front desk, the upscale property also offers executive club rooms featuring well-lit desks with ergonomically designed chairs, as well as in-room fax machines.

"New York is a gateway city to the world, and many hotels are realizing that they need to market their properties globally in order to capture their share of the international market.. Utell provides the perfect solution for them," said Graham Richards, senior vice president - Americas Division of Utell. "Our success with The Park Central Hotel is a testament to the positive impact that a strengthened worldwide presence can make. Park Central wanted to diversify its guest base and boost reservation traffic. By strategically applying Utell's extensive knowledge of the travel industry and our comprehensive global services offering, we are able to help Park Central achieve its desired results."

Company Information

Located in the heart of midtown Manhattan, directly across from Carnegie Hall, The Park Central Hotel recently completed a $65-million renovation. The Park Central Hotel now boasts a new lobby, a 40-seat PC lounge and 935 renovated guest rooms, including 235 executive club rooms and suites. Other services and amenities include a transportation and theater ticket desk, a gift shop, concierge services, in-site audio/visual equipment and a multi-lingual staff. For more information, please visit the hotel's Web site at or call (800) 346-1359.

With more than 6,400 member hotels in 180 countries, Utell, a service of Pegasus Solutions, is the hotel industry's largest third-party marketing and reservations provider1. Member properties range from budget to deluxe, city center to resort, and include major international brands, as well as independent hotels. For more information, or to make reservations with a Utell-represented property, visit Utell's Web sites at www.hotelbook.com and utell.com or access the UI code on the global distribution systems.

Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading provider of end-to-end reservation distribution solutions to the hotel industry worldwide. Its services include central reservation systems; third-party marketing and reservation representation services, including Utell, Summit Hotels & Resorts, Golden Tulip Worldwide, and Sterling Hotels & Resorts; electronic distribution services that connect more than 34,000 hotels to the Internet and to the global distribution systems (GDS); commission processing and payment services; the consumer travel Web site TravelWeb.com (www.travelweb.com); and data warehousing and database marketing and consulting services. Pegasus' customers comprise more than 100,000 travel agencies around the world, including nine of the 10 largest U.S.-based travel agencies2; more than 36,000 hotel properties around the globe, including nine of the 10 largest hotel companies in the world based on total number of guest rooms3; and 181 Web sites/services have contracted to have their hotel reservations Powered by Pegasus™. In addition to its corporate headquarters in Dallas, Pegasus has 39 offices in 25 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 results, including anticipated transactions involving and services to be offered by Pegasus Solutions. These statements are forward-looking statements regarding future events and the future financial performance of the company and no assurances can be made regarding their eventual occurrence. Actual occurrences and results may differ substantially and materially from those projected as a result of risks and uncertainties 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, 1999, and its Form S-4 (File No.333-92683) that was declared effective March 31, 2000.

1 Hotels Magazine, "Hotels Consortia 25," July 2000

2 Travel Weekly, "Top 50 Travel Agencies," June 2000

3 Hotel Business, February 7, 2000