PEGS Pegasus Solutions (MM)

Pegasus Solutions, Inc. (Nasdaq:PEGS) announced today that it has selected Multi-Systems Inc. (MSI), a leading property management system provider, as the buyer for Pegasus' NovaPlus and GuestView(R) property management systems (PMS) business. MSI has signed an agreement to buy Pegasus' PMS business, which has both chain and independent hotel customers including a number of Best Western properties. Dallas-based Pegasus Solutions is a global leader in providing technology and services to hotels and travel distributors. MSI develops, markets and supports integrated property management systems for the lodging industry. MSI has an existing relationship with Best Western International as one of its technology providers; the company already has an interface with Best Western's LYNX central reservation system. MSI has a customer base of more than 2,800 properties. Pegasus will continue to operate its PMS business and to provide support to its PMS customers until the purchase by MSI has been completed. The terms of the transaction were not disclosed. Any gain or loss in connection with the transaction is not expected to be material to the operations of the company and will be recorded in discontinued operations. Pegasus continues to review opportunities regarding the sale of its PegasusCentral(TM) property management system. John F. Davis III, chairman and CEO of Pegasus, said: "MSI is a great choice because it is a respected PMS supplier in the hotel industry, and the team there already has great experience working with Best Western International. We're committed to working with MSI toward a smooth transition." About MSI MSI, founded in 1990, is a leading supplier of hotel technology and property management systems. With an installed customer base of more than 2,800 hotels and resorts throughout North America, MSI is one of the lodging industry's largest providers of fully integrated property management, sales, marketing & catering, point of sale, centralized corporate services, and wireless PM systems. MSI specializes in "total system solutions" for management companies and hotel chains by providing central reservation and property system integration. MSI's customer support team has been recognized as one of the best in the industry and is the key to the success of their products and services. For additional information about Multi-Systems, Inc. technology solutions, please contact Bridget Oliva at 800-331-7890 or info@msisolutions.com. For more information on MSI, visit www.msisolutions.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, www.hotelbook.com(TM). 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. Some statements made in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding future events, financial projections, estimated transaction volumes and expected average daily room rates, as well as management's expectations, beliefs, hopes, intentions or strategies regarding the future. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from current expectations. Factors that could cause or contribute to such difference include, but are not limited to, terrorist acts or war, global health epidemics, variation in demand for and acceptance of the company's products and services, the level of product and price competition from existing and new competitors, delays in developing, marketing and deploying new products and services, any strategic alternative undertaken by the company, the inability of the company to sell the PMS operations, risks associated with a PMS sale transaction and the inability of the company to terminate the PMS services as expected, as well as other risks identified in the company's Securities and Exchange Commission filings, including those appearing under the caption Risk Factors in the company's Annual Report on Form 10-K for the year ended December 31, 2004.