PEGS Pegasus Solutions (MM)

Hilton International and Pegasus Solutions, Inc. (Nasdaq:PEGS) today announced that the 130 Scandic and Hilton hotels in the Nordic region (Denmark, Finland, Norway and Sweden) will join Hilton International's other hotels that are already using Pegasus commission processing services. Furthermore, as a new benefit to travel agents, Pegasus will process the Value Added Tax on commissions payments and create invoices on the agents' behalf, in a new service that should be more efficient for travel agents and hotels. The hotel chain Scandic, owned by Hilton International, is the leading hotel brand across the Nordic region. Dallas-based Pegasus is a global leader in providing technology and services to hotels and travel distributors. The Nordic region within Hilton is the first to provide this new service enhancement to travel agencies. Pegasus, Scandic and Hilton are conducting pilot tests of the service in four Scandic hotels -- one in each Nordic country. A full launch of the service for all Scandic hotels is planned for March 2006. The companies ask all travel agencies that book Scandics and Hiltons in the Nordic region to supply their VAT identification number to Pegasus at http://www.comminfo.pegs.com/vat.asp. By working with Pegasus to process its commissions and to use the new VAT invoicing enhancement, Scandic and Hilton improve their relations with travel agents in Europe and beyond who book their properties. Additionally, Pegasus is now offering the VAT-processing service to other hotel chains that use Pegasus' commission processing service. Jean-Paul Herzog, president, Hilton and Scandic -- Nordic, said: "We are very pleased that Hilton and Scandic in the Nordic region will now also be using Pegasus Commission Processing as part of our commitment to enable prompt and easy payment of commissions to travel agents." Bob Boles, chief operating officer for Pegasus, said: "This VAT processing solution provides a valuable service to travel agencies, which should earn our new customer Hilton International-Nordic considerable goodwill throughout the agent community. We were pleased to work with Hilton-Nordic to develop this critical functionality, useful for Europe as well as other VAT-regulated regions. We hope to work with many more hoteliers to implement this new standard solution." About Hilton International Hilton International (HI), an operating division of the UK based Hilton Group plc, owns the rights to the Hilton brand name throughout the world, with the exception of the USA, where the Hilton brand is owned and managed by Hilton Hotels Corporation (HHC). Hilton International operates 403 hotels under the Hilton and Scandic brands. In the Nordic region (Denmark, Finland, Norway and Sweden) the portfolio includes 5 Hilton hotels and 125 Scandic hotels. Under a joint venture agreement, Hilton International and the North American based Hilton Hotels Corporation (HHC) share responsibility for the Conrad brand, which includes 17 hotels in 12 countries. A global marketing alliance between Hilton International and Hilton Hotels Corporation extends the number of hotels operated by both companies worldwide to over 2,700 -- over 500 of which are branded Hilton. Hilton International employs over 71,000 team members in 80 countries. For further information on Hilton International, please visit our corporate website, at: www.hiltongroup.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.