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Pegasus Solutions, Inc. Signs Agreement to Acquire
the Stock of Unirez, Inc. for $38 million in Cash
Would Significantly Expand Pegasus' Independent
and Small Group Hotel Business
    
DALLAS - Nov. 5, 2003 -- Pegasus Solutions, Inc. (Nasdaq:PEGS), a leading global provider of hotel reservations-related services and technology, today announced the signing of a definitive agreement to acquire the stock of Unirez, Inc., one of the fastest growing hotel reservations services companies in the world, for $38 million in cash. The transaction is expected to generate approximately $10 million in future tax deductions that will effectively reduce the purchase price. The acquisition is subject to completion of due diligence and other customary contingencies.
    
By adding Unirez, Pegasus would move forward in fulfilling its multi-tiered representation strategy for independent and small group hotels by providing a lower-cost distribution service, in addition to the full-service offering currently provided through Pegasus' Utell representation service.
    
"In addition to our long history with the world's largest hotel chains, a key element of our strategy is to serve the needs of smaller chains and independent hotels with valuable services that are cost-effective for that market," said John F. Davis III, chairman, president and CEO of Pegasus. "With the acquisition of Unirez, we would expect to be better positioned than ever before to serve the independent and small group hotel market."
    
If concluded, the acquisition is expected to close in the fourth quarter and be accretive on a cash earnings basis immediately although results may vary on a GAAP basis. It is not expected to have a material impact on fourth quarter 2003 cash earnings. The company will provide more information regarding its integration plans and the financial impact of the acquisition after closing.
    
Dallas-based Unirez serves independent properties and small group hotels by providing central reservation services that enable distribution of room inventory through Global Distribution Systems (GDSs) and Internet channels. In recent years, the demand for this type of "connectivity-only" service has increased, with independent hotels relying more on Internet channels, as well as their own marketing efforts and web sites, to drive business.
    
The Unirez technology platform gives customers the flexibility to buy only those services they require. Unirez owns and operates its own central reservation system, Hotel Factory(TM), using the application service provider (ASP) model. All applications run via the Internet. Unirez customers have the ability to enter and control all the information about the hotel, including rates and packages, room types and descriptions, availability, and any descriptive information. With this automated process, hotel data is immediately uploaded into various distribution channels and can be modified at any time.
    
"Our goal was to develop a reservation system that is highly automated and easy to use, giving hotels more access to data and allowing them to make changes at a moment's notice," said Dwight Hendrickson, president and CEO of Unirez. "We've accomplished our original goal and, at this juncture, we believe that joining forces with Pegasus would afford the combined companies exciting growth possibilities."
    
About Unirez, Inc.
As a global company with a strong entrepreneurial spirit, Unirez led the online hotel reservations industry revolution into Internet-based, ASP technology. Utilizing its highly acclaimed, proprietary Hotel Factory(TM) system, its hotels are provided real-time control of data, channel management, comprehensive management reporting and future forecasting capabilities, all seamlessly through the Internet. Unirez is a leading source of integrated technology and management solutions, providing a vast array of reservation services to its clients including next generation seamless connectivity to the GDS. With representation in hundreds of the world's largest Internet sites, a call center specializing in private label voice services 24 hours, 7 days-a-week and a very powerful, single-screen booking engine to power proprietary hotel web sites, Unirez interfaces to many popular Property Management Systems, as well as CRM and Revenue Management solutions. Unirez represents nearly 3,000 clients located in 47 countries.
    
About Pegasus Solutions, Inc.
Dallas-based Pegasus Solutions, Inc. (Nasdaq:PEGS) is a leading global provider of hotel reservations-related services and technology. Founded in 1989, Pegasus' customers include a majority of the world's travel agencies and more than 50,000 hotel properties around the globe. Pegasus' services include central reservation systems, electronic distribution services, commission processing and payment services, property management systems, and marketing representation services. The company's Utell representation service is used by nearly 4,400 Utell member hotels in more than 140 countries, making Pegasus the hotel industry's largest third-party marketing and reservations provider. Pegasus has 18 offices in 11 countries, including regional hubs in London, Scottsdale and Singapore. For more information, please visit www.pegs.com.

Some statements made in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 

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Contact:
Pegasus Solutions, Inc.
Dallas
Cindy Foor
214-234-4129
Also See: Unirez Founder Wins “Emerging Entrepreneur of the Year” Award; Dwight Hendrickson Selected by Ernst & Young Institute / July 2003
Unirez Moves Crucial Reservations Infrastructure to Disaster - Proof Location; Server Relocation Ensures Peace of Mind for More than 3,000 Hotel Clients / February 2003


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