PEGS Pegasus Solutions (MM)

Pegasus Solutions, Inc. (Nasdaq:PEGS) and Open Hospitality, Inc. today announced an agreement to include a newly integrated version of Open's interactive Web services in Pegasus' suite of service offerings to hotels. Dallas-based Pegasus Solutions is a global leader in providing technology and services to hotels and travel distributors. New York-based Open provides pay-for-performance management of direct-to-Web site strategies, and its services are positioned as an extension of hotels' online sales and marketing initiatives. Open's Internet booking engine and services for Web site management, e-mail marketing and search engine optimization is planned to be integrated into Pegasus' reservation and representation services to create new solutions. The services include distribution tools and marketing processes that are unique in the hospitality technology marketplace. These tools are designed to allow hoteliers to improve their Web site productivity and enhance their hotel's presence on major Internet search engines, while capitalizing on the global reach of Pegasus' electronic distribution and marketing services. The combined Pegasus-Open solution has already been tested and successfully deployed to independent hotel customers in North America and is in development in Europe and Latin America. Jon S. Handlery, senior vice president and general manager of Handlery Hotels, a member of the Utell by Pegasus(TM) service, said: "In just three months, our Web sites have seen a 50 percent increase in bookings at our San Diego property, and we have already received 50 percent of all of last year's revenue booked at our San Francisco property. The flexibility of the Open System has enabled us to get a handle on ROI tracking for all of our marketing initiatives, and we are pleased with the proactive approach that Open's staff has taken with our online strategies." Bob Boles, chief operating officer for Pegasus, said: "Through this agreement with Open Hospitality, we can provide new, valuable services to our hotel customers, which supplement our own group of Web services. Quality alliances with innovative hospitality technology providers will strengthen our position as a global leader in providing technology and services to hotels." David Millili, CEO and co-founder of Open Hospitality, said: "We are excited to be leveraging the global reach of Pegasus with our online strategies model. Our alliance will offer hoteliers a wide suite of interactive services that can dramatically increase their exposure to online customers and, ultimately, increase their revenues." Brian Dass, president and co-founder, added: "For hotels to reap the benefits and rewards of this alliance, they should sign on for these integrated services today." About Open Hospitality New York-based Open Hospitality provides integrated management services by the processes of Web site management, search engine optimization, e-mail marketing and online revenue conversion into one proprietary dashboard for better management, tracking and reporting. Open's pay-for-performance model and One Partner Every Need(TM) philosophy have pioneered a shift to consolidating services, eliminating the need for multiple vendor relationships and removing prohibitive costs as a barrier to implementing sound and comprehensive electronic initiatives. For more information, please visit www.openhospitality.com. About Pegasus Dallas-based Pegasus Solutions, Inc. (Nasdaq:PEGS) is a global leader in providing technology and services to hotels and travel distributors. Founded in 1989, Pegasus' customers include a majority of the world's travel agencies and more than 60,000 hotel properties around the globe. Pegasus' services include central reservation systems, electronic distribution services, commission processing and payment services, and marketing representation services, including the consumer Web site, hotelbook.com. The company's representation services, including Utell by Pegasus(TM) and Unirez by Pegasus(TM), are used by nearly 7,000 member hotels in 140 countries, making Pegasus the hotel industry's largest third-party marketing and reservations provider. Pegasus has 18 offices in 13 countries, including regional hubs in London, Scottsdale and Singapore. For more information, please visit www.pegs.com.