Pegasus Solutions CEO John F. Davis III Appointed Chairman of the Board

"Since the company's creation in 1989, Pegasus has grown substantially in terms of the depth and breadth of solutions we provide to the hotel industry. Likewise, my role at Pegasus has also evolved during the past 12 years. It's essential now to focus my attention on the continued development of industry-leading innovations to propel Pegasus forward and to ensure the successful execution of our long-term business plan," Davis said. "I am delighted to accept the expanded position of chairman and look forward to our future growth as we continue to define our leadership position in the hotel industry."

During his 12-year tenure at Pegasus Solutions, Davis, age 47, has led numerous strategic initiatives at the company, including a successful initial public offering in August of 1997. Prior to that, he launched the company's Electronic Distribution Switch technology in 1989, which today connects approximately 40,000 hotels to the GDSs, as well as to alternative distribution channels such as the Internet. Davis created Pegasus Commission Processing in 1992, which now provides major hotel organizations and more than 100,000 travel agencies worldwide with consolidated commission payment and management reporting via an electronic network. Most recently, he led Pegasus' acquisition of REZsolutions, Inc., the hotel industry's largest third-party marketing and reservation provider. With this transaction, Pegasus grew to 2,000 employees located in 25 countries.

Prior to joining Pegasus, Davis held various positions in several entrepreneurial endeavors, including 1-800-FLOWERS and ATC Communications. Prior to these successes, he was president of Mid-South Drilling Company.

Davis' contribution to the hotel and travel industries has also been recognized by many leading publications. Travel Agent magazine named Davis the hotel industry's "Person of the Year" for 2000 and Business Travel News named him to its "Travel Industry Hall of Fame" in 1999, recognizing Davis as one of the elite in the industry.

Additionally, Business Travel News designated Davis one of the business travel industry's "25 Most Influential Executives" in 1994, 1995, 1997, 1998 and 1999. Lodging magazine named Davis to its 1999 and 2000 lists of the top 75 executives in the hotel industry. Interactive Travel Report lauded Davis as the "Person of the Year in Interactive Travel" in 1998. In 1997, Davis was named one of the "25 Most Influential People in the Meetings Industry" by Meeting News. Computerworld appointed Davis an "Agent of Change" in 1995.

Davis received a bachelor of business administration degree from Texas Christian University in Fort Worth, Texas.

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(1); 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(2); and more than 1,000 Web sites/services have their hotel reservations Powered by Pegasus™. 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) Travel Weekly, June 26, 2000, "Top 50 Travel Agencies"
(2) Business Travel News, May 29, 2000, "The Top Hotel Companies"