Marco Polo Hotels Discovers Worldwide Representation with Pegasus Solutions' Utell

"The Marco Polo Hotel Group had been searching for a GDS/distribution solution that would be highly efficient, cost effective and compatible with our overall marketing strategy," said Jeffrey Flowers, senior vice president, marketing & development, Marco Polo Hotel Group. "We selected Utell for its innovative approach, flexibility and expertise to support our existing and new hotels in the Asia Pacific." Utell will also be equipping Marco Polo's own Web site, www.marcopolohotels.com, with NetBooker(TM) Custom, an online booking engine that is "Powered by Pegasus(TM)."

"Marco Polo is an established brand name in the Asia Pacific region," added Kelvin Seah, senior vice president - Asia Pacific, Utell. "Through this relationship, Utell will help the Marco Polo Hotel Group achieve optimal room revenue and yield at property level and reduce distribution costs through the use of Pegasus Solutions' electronic distribution technology." Pegasus Solutions 'powers' the online hotel reservations of more than 1,000 Web sites through its customers' affiliates.

The six Marco Polo properties represented by Utell are the Marco Polo Hong Kong Hotel, The Marco Polo Gateway and The Marco Polo Prince in Hong Kong; The Marco Polo, Xiamen in China; Marco Polo's Omni Saigon Hotel in Ho Chi Minh City, Vietnam; and The Marco Polo Davao, Philippines. The hotels offer a perfect blend of Asian and Western hospitality, along with the comforts of high quality accommodation and the convenience of Utell gateway city locations. As part of its effort to strengthen and grow the brand in the new millennium, the group unveiled a new logo and changed its corporate name on October 26, 2000.

Under the expanded agreement, the properties are now bookable via GDS under the 'MH' code; via voice through Utell's international network of call centers in 24 countries; via the Internet at www.utell.com or www.hotelbook.com as well as through alternate distribution channels such as Travelweb.com® and other sites in Pegasus' Online Distribution Network, including Seoul, Korea-based GL Network International () and Tokyo-based Recruit Isize Travel Company, Ltd. ().

Company Information

Marco Polo Hotels is poised to be a leading hotel brand in the Asia Pacific region. Located in gateway cities, its portfolio of six hotels are luxuriously appointed. The hotels feature a blend of Asian and Western hospitality, served in comfortable and superior accommodation in strategically selected locations. They appeal to the needs of the modern travelers whether on business or on leisure. Each Marco Polo hotel reflects the uniqueness of its host city, bringing together the inherent values and traditions of Asia with a refreshing contemporary elegance.

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 provider(1). 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 or www.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 reservations 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 37,000 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 agencies(2); approximately 39,000 hotel properties around the globe, including 18 of the 20 largest hotel companies in the world based on revenues and total number of guest rooms(3); and 240 Web sites/services have contracted to have their hotel reservations Powered by Pegasus(TM). 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 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 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, 1999, and its Form S-4 (File No. 333-92683) that was declared effective March 31, 2000.

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

(2) Travel Weekly, June 26, 2000, "Top 50 Travel Agencies"

(3) Business Travel News, May 29, 2000, "The Top Hotel Companies"