Pegasus Solutions to Power Online Hotel Bookings for European Corporate Travel Management System

KDS' Wave Suite of corporate travel management systems includes Wave Corporate for large companies and Wave Portal for smaller companies. These online travel management solutions enable subscribing companies to set and enforce corporate travel policies, create electronic approval systems and negotiate more effectively with travel suppliers, resulting in significant cost savings. KDS' Wave Suite will utilize Pegasus' hotel reservations technology to connect directly to hotels' central reservations systems.

By using Pegasus' Electronic Distribution technology, KDS clients will be able to access corporate negotiated rates at potentially more than 40,000 hotels. More than 40 percent of the hotels available through Pegasus are located outside of the United States and include chain hotels, luxurious five-star hotels and independent hotels. KDS' travel management system users will be able to check availability online, and bookings will be confirmed immediately without waiting for confirmation by e-mail. KDS' customers will also be able to view detailed property information, rates and photos, and secure instant real-time reservations 24 hours a day.

"Our goal is to provide our clients with a tool that will help them slash costs through better management of corporate travel processes," said Yves Weisslberger, chief executive officer of KDS. "By signing with Pegasus, we will be able to provide a direct link to a variety of hotel suppliers."

Gideon Dean, senior vice president of Pegasus Solutions' worldwide technology sales and account management, said, "A growing number of companies are turning to Web-based technology applications to help cut travel costs and enhance service to employees. We are thrilled to help KDS provide more hotel booking opportunities to its corporate clients. Under this agreement, both KDS' corporate customers and our hotel customers will benefit."

Jupiter Research reports that by 2005, business travel sales generated on managed corporate booking systems are expected to grow to nearly $33 billion. The research firm PhoCusWright reports the European online travel market is expected to more than triple from an estimated $2.9 billion worth of bookings in 2000 to more than $10.9 billion in 2002.

Paris-based KDS () is one of Europe's leading suppliers of online travel management solutions. KDS's Wave Suite programs use technology to directly access suppliers' stocks, including air companies, car rentals, and railways, either directly or through the main global distribution systems of Amadeus, Apollo, Galileo, Sabre or Worldspan. Founded in 1994, KDS is headquartered in France and has subsidiaries in the United States, the United Kingdom and Germany. Its clients include large companies, travel agencies, Internet marketplaces and suppliers, including Accor Reservation Services, Europcar, Carlson Wagonlit Travel and Swissair.

Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading global provider of hotel reservations technologies. Its services include central reservations systems; electronic distribution services that connect more than 40,000 hotels to the Internet and to the global distribution systems (GDS); travel agent commission processing and payment services; the consumer Internet site TravelWeb.com (www.travelweb.com); customer relationship management services; the Utell and Golden Tulip Worldwide marketing and reservations representation services; and soon, a Web-based enterprise solution with property management applications. 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 42,000 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 hundreds of Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 35 offices in 22 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"