Qantas Selects Pegasus Solutions for Collection, Processing and Reconciliation of Hotel Commissions

Business Wire, March 23, 2003

Business Editors/Travel Writers

DALLAS & SYDNEY, Australia--(BUSINESS WIRE)--March 23, 2003

Nearly 50 Percent of Australia's Travel Agencies now Participate in

Pegasus Commission Processing

Pegasus Solutions, Inc. (Nasdaq:PEGS) added Australian airline Qantas to its customer roster after signing a two-year agreement with the country's biggest domestic and international carrier. Under the agreement, Pegasus will process and track hotel commission payments due to the airline. Pegasus Commission Processing, one of the hotel industry's leading travel agent commission processing services, was created in 1992 by Dallas-based Pegasus Solutions, a leading provider of hotel reservations-related services and technology.

The addition of Qantas solidifies Pegasus' standing as the foremost provider of automated commission processing services in Australia and in the entire Asia Pacific region. More than 2,000 Australian travel agency locations, representing nearly 50 percent of the continent's travel agency community, are members of Pegasus Commission Processing (formerly HCC). Approximately 50 percent of travel agencies in the Asia Pacific territory are members of the Pegasus service. More than 3,000 hotels in the Asia Pacific region participate, reducing back-office administrative tasks while enhancing relationships with agencies through expedient commission payment.

On behalf of Qantas' multiple travel agency locations and booking outlets, Pegasus collects and consolidates hotel booking data and commissions each month from more than 35,000 properties around the world. After consolidating this information, Pegasus sends a single commission payment along with detailed reconciliation information by hotel brand.

Pegasus' Electronic Reconciliation & Tracking service, which Qantas is utilizing as part of this agreement, provides the airline with automated management of all of its hotel commissions, not just those from hotels that participate in Pegasus Commission Processing. The service enhances standard commission processing activities by reconciling and tracking hotel booking and guest stays from all of the properties the agency booked in a given time frame. The service employs unique automated searches to match bookings and payments, generating inquiries when necessary and confirming payments.

By participating in Pegasus Commission Processing, most member travel agencies realize a significant growth in commission revenue, as well as cost savings due to a sizable reduction in expenses associated with non-automated methods for managing hotel commissions. Pegasus also maintains highly responsive customer service support for travel agencies, with more than 70 percent of commission queries being serviced and satisfactorily answered during one phone call with Pegasus.

With the majority of travel agencies worldwide as members, including the 10 largest travel agencies in the U.S., Pegasus processes an average of $41 million in travel agent commissions per month on behalf of more than 100 hotel companies in 159 countries.

"The addition of the Qantas Group to Pegasus Commission Processing enhances the value of our services to the hospitality industry in Australia, New Zealand and the entire Asia-Pacific region," said John F. Davis III, chairman, CEO and president of Pegasus Solutions. "In particular, the 35,000-plus hotels around the world who participate in Pegasus Commission Processing are likely to be pleased that they can now pay Qantas commissions without cutting separate checks."

For Pegasus Commission Processing membership information, travel agencies can call (214) 234-4232 in the U.S. or 65 626-09458 in the Asia Pacific Region. Interested parties can also request information by e-mailing memberinfo@pegs.com.

Company Information

Qantas is widely regarded as the world's leading long distance airline and one of the strongest brands in Australia. The company operates a fleet of 187 aircraft across a network spanning 142 destinations in 32 countries. Qantas operates subsidiary businesses including other airlines, and businesses in specialist markets such as Qantas Holidays and Qantas Flight Catering. For more information on Qantas, visit www.qantas.com.au/ or email qantasmedia@qantas.com.au.

Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading global provider of hotel reservations-related services and technology. Its services include central reservations systems; electronic distribution services that connect more than 45,000 hotels to the Internet and to the global distribution systems (GDS); travel agent commission processing and payment services; the Utell marketing and reservation representation service (www.Utell.com); and PegasusCentral(TM), a Web-based enterprise solution with property management applications. Pegasus' customers comprise the majority of travel agencies around the world, including the top 10 largest U.S.-based travel agencies(1); more than 48,000 hotel properties around the globe, including all of the 50 largest hotel brands in the world based on total number of guest rooms(2); and thousands of Web sites/services have their hotel reservations Powered by Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 20 offices in 11 countries, including regional hubs in Phoenix, London and Singapore. The company's stock is traded on the Nasdaq National Market under the symbol PEGS.