POINT ROBERTS, Wash., Nov 20, 2000 (BUSINESS WIRE) -- BudgetHotels.com, Inc.
(OTCBB:BUDH), a leading provider of innovative Internet hotel reservations,
today announced that the Company has entered an agreement with Pegasus
Solutions, Inc. (NASDAQ:PEGS), a leading provider of end-to-end reservation
distribution solutions to the hotel industry worldwide, to provide visitors of
the BudgetHotels.com with Web-based hotel information and reservations
worldwide.
 
"This arrangement will allow BudgetHotels.com to take advantage of the large
travel Internet booking service and quickly expand its sales and marketing
efforts as well as strengthen long term growth and profitability for the
Company," said William Marshall, CEO and president of BudgetHotels.com, Inc.
 
Marshall continued, "Budget travel is by far the largest segment of the rapidly
growing travel industry with estimated expenditures of over $750 billion. This
new agreement is a unique opportunity for us to offer our customers more choices
and destinations by using sophisticated reservations technology offered by
Pegasus Solutions."
 
Mr. Marshall concluded, "Given the growth in the online travel industry, the
Company believes that in addition to upgrading its existing software and
hardware, with this agreement with a major industry establishment like Pegasus,
the Company can potentially increase the number of unique visitors per month to
over 500,000 within one year, thereby potentially increasing sales from the Web
sites and the profitability of the Company."
 
About BudgetHotels.com, Inc.
 
BudgetHotels.com, Inc. is becoming a leader in providing innovative Internet
hotel reservations and its Info Center division is rapidly expanding its
advertising board locations for services for budget travelers. BudgetHotels.com,
Inc., via its primary Internet Web site at www.budgethotels.com, is an online
travel reservation directory and accommodations guide to budget hotels, motels,
youth hostels, bed & breakfasts in the USA and Canada with expansion planned to
cover Europe and Australia.
 
About Pegasus Solutions, Inc.
 
Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading provider of
end-to-end reservation distribution solutions to the hotel industry worldwide.
Its services include central reservations systems; third-party marketing and
reservation representation services, including Utell, Summit Hotels & Resorts,
Golden Tulip Worldwide, and Sterling Hotels & Resorts; electronic distribution
services that connect more than 37,000 hotels to the Internet and to the global
distribution systems (GDS); commission processing and payment services; the
consumer travel Web site TravelWeb.com (www.travelweb.com); and data warehousing
and database marketing and consulting services. Pegasus' customers comprise more
than 100,000 travel agencies around the world, including nine of the 10 largest
U.S.-based travel agencies(1); approximately 39,000 hotel properties around the
globe, including 18 of the 20 largest hotel companies in the world based on
revenues and total number of guest rooms(2); and more than 240 Web
sites/services have contracted to have their hotel reservations Powered by
Pegasus(TM). In addition to its corporate headquarters in Dallas, Pegasus has 39
offices in 25 countries, including regional hubs in Phoenix, London and
Singapore. The company's stock is traded on the NASDAQ National Market under the
symbol PEGS.
 
Certain information included in this communication (as well as information
included in oral statements or other written statements) made, or to be made by
BudgetHotel.com, Inc. may contain statements that are forward looking.
Statements relating to the future anticipated direction of the internet
industry, plans for future expansion, various business developments, activities,
planned capital expenditures, future funding resources, anticipated sales growth
and potential contracts are subject to a number of known and unknown risks and
uncertainties that could cause actual operations or results to differ materially
from those anticipated.
 
This statement contains references to future events and projected results,
including anticipated transactions involving Pegasus Solutions and its service
offerings. There can be no assurance that the referenced future events or
projected results will actually occur or that the future financial performance
of Pegasus will be as projected. Actual occurrences, results and performance may
differ substantially and materially from those projected as a result of risks
and uncertainties mentioned in this statement or detailed in Pegasus Solutions'
periodic reports and registration statements filed with the Securities and
Exchange Commission including its Form 10-K for the year ended December 31,
1999, and its Form S-4 (File No. 333-92683) that was declared effective March
31, 2000.
 
 
 CONTACT:          BudgetHotels.com
                   William J. Marshall
                   Tel: 800/548-4432
                   wmarshal@budgethotels.com
                   PO Box 1129
                   Point Roberts, WA 98281
                   Tel: 250/868-1171
                   Fax: 250/868-1223
                   budgethotels.com