Prides Capital Announces Two Add-On Acquisitions for Portfolio Company Pegasus Solutions

Business Wire, May 7, 2007

BOSTON -- Prides Capital ("Prides") today announced that it has funded the acquisition of two add on companies for its portfolio company, Pegasus Solutions ("Pegasus"). The funds for the acquisitions came from a significant recapitalization based on the performance of Pegasus. In addition, as part of the recapitalization, Prides returned a portion of the initial investment capital to its LPs.

On May 2, Pegasus Solutions, a global leader in providing technology and services to hotels and travel distributors, entered into a definitive agreement to acquire GuestClick, a provider of Web-based software and services for the hospitality industry. In addition, on April 30, Pegasus announced the acquisition of Wizcom Inc. from Travelport. Wizcom provides distribution switch services to the Global Distribution Services (GDS).

"These acquisitions provide a strong example of Prides' investment philosophy, as, working with Pegasus management, we helped identify, structure and finance key add-on acquisitions that add significant value to the company," said Kevin Richardson, Prides Capital's managing partner.

Christian Puscasiu, a partner at Prides Capital, added: "As long-term, active investors, we are pleased with the company's progress and also that, in less than one year after closing, we were able to return a significant portion of equity to our LPs."

In May 2006, Prides took the company private in a transaction valued at approximately $275 million.

About Prides Capital Partners, LLC

Prides Capital, based in Boston and San Francisco, specializes in strategic block, active investing in small- and micro-cap public and private companies. In partnership with its management teams, Prides seeks to create value through strategic, operational and financial assistance. For more information, please visit www.pridescapital.com.

About Pegasus

Dallas-based Pegasus Solutions, Inc. 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 78,000 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. The company's representation services, including Utell[R] Hotels & Resorts and Unirez by Pegasus[TM], are used by more than 9,300 member hotels in more than 130 countries, making Pegasus the hotel industry's largest third-party marketing and reservations provider. Pegasus has 16 offices in 11 countries, including regional hubs in London, Singapore and Scottsdale, Arizona. For more information, please visit www.pegs.com.