Pegasus Solutions

PHOENIX -- Maximizing its strategic relationship with Utell, the Aladdin Resort and Casino in Las Vegas became the single most frequently booked hotel across the thousands of Web sites in the "Powered by Pegasus"(TM) Internet distribution network in January. Utell, a Pegasus Solutions Company PEGS, is the world's largest third-party provider of representation, reservations and marketing services to the hotel industry(1).

Utell provides hotels with Internet reservation distribution services through Pegasus Solutions' extensive Online Distribution Network, which includes more than a thousand sites such as Continental Airlines' site, , TravelWeb.com(R) and GL Network's HotelWeb.co.kr. Aladdin's own branded site at is "Powered by Pegasus" using Utell's Netbooker(TM) Link online booking engine. Aladdin also receives Internet distribution through Utell's proprietary bookable Web sites, www.hotelbook.com and www.utell.com. The Aladdin Resort and Casino opened just five months ago on the Las Vegas Strip and offers the most dining, shopping, gaming and entertainment on the strip.

"As January's most popular hotel among all of the 38,000 properties that are bookable through Pegasus' Online Distribution Network, we're convinced we made the right decision when we chose Utell to help us with our reservations distribution and marketing," said Ryan Kingston, vice president of hotel operations for Aladdin Resort & Casino. "Utell's technology, local account management infrastructure, and worldwide brand recognition among travel agents, meeting planners and tourists has helped Aladdin instantly became a popular place to stay in Las Vegas."

Graham Richards, senior vice president of Utell's Americas Division, said, "Before ever generating a single reservation for the Aladdin, Utell's account management and revenue and yield team created a customized suite of products and services that produced a winning combination of distribution channels that catapulted the Aladdin ahead of its competition.

"Utell's technology allows members to select from a wide range of reservation sources that showcase their properties as well as offer real-time booking on their Web sites, while providing traditional booking options such as GDS and voice," Richards continued. "Our account team is proactive in generating incremental business and revenue for the Aladdin in order to make sure their individual needs are being met."

The Aladdin Resort & Casino, opened in August 2000, features 2,600 guest rooms, 100,000 square feet of gaming space, a 7,000-seat theater for the performing arts, 21 restaurants, and a 500,000-square-foot shopping center, Desert Passage. The new resort features the 35,000-square-foot London Club at Aladdin, Las Vegas' only European-style luxury gaming salon, and two outdoor pools resting six stories above Las Vegas Boulevard.

Company Information

With more than 6,400 member hotels in 180 countries, Utell, a Pegasus Solutions Company, 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 and Golden Tulip Worldwide; electronic distribution services that connect more than 40,000 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); data warehousing and database marketing and consulting services; and soon, a Web-based property management system. Pegasus' customers comprise more than 100,000 travel agencies around the world, including nine of the 10 largest U.S.-based travel agencies(2); more than 40,000 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 more than 1,000 Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 36 offices in 23 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, "Hotels Consortia 25," July 2000
2 Travel Weekly, June 26, 2000, "Top 50 Travel Agencies"
3 Business Travel News, May 29, 2000, "The Top Hotel Companies"

Cheryl Cox
602 906-7232
Pegasus