Exhibit 99.1 Press release issued June 12, 2002
Contacts:
Pegasus Solutions Morgen-Walke Associates
Susan K. Cole Melissa Jaffin
Press: Karin Wacaser Press: Evan Goetz
214-234-4000 212-850-5600
Pegasus Solutions Authorizes New Stock Buy-back Program to Repurchase up to
2.5 million shares
DALLAS - June 12, 2002 -- Pegasus Solutions, Inc. (Nasdaq: PEGS), a leading
provider of transaction processing and electronic commerce solutions to the
hotel industry worldwide, today announced its Board of Directors has
authorized a new stock buy-back program for the repurchase of up to 2.5
million shares of the Company's common stock.
"Based on the recent drop in markets overall and within our market segment
in particular, we believe the current valuation of Pegasus Solutions' common
shares makes the stock a solid investment and represents an attractive
opportunity to enhance long-term shareholder value," said John F. Davis III,
Pegasus Solutions' chairman of the board and chief executive officer. "The
buyback authorization expresses our continued confidence in the Company's
strategic plan for future growth and its sound business fundamentals."
As of May 31, 2002, Pegasus Solutions had 24.8 million shares of common
stock outstanding, excluding shares previously repurchased. Any repurchase
is at the discretion of the Pegasus Board of Directors' Stock Repurchase
Committee and may be made on the open market, in privately negotiated
transactions or otherwise, depending upon market conditions, share price,
share availability and other factors. Shares repurchased may be reserved
for later reissue in connection with employee benefit plans and other
general corporate purposes.
Through June 11, 2002, Pegasus has repurchased approximately $1.0 million or
71,500 shares of its outstanding common stock under this new stock buy-back
program.
About Pegasus Solutions
Dallas-based Pegasus Solutions, Inc. (www.pegs.com) is a leading global
provider of hotel reservation technologies. Its services include central
reservations systems; electronic distribution services that connect more
than 42,000 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 tens of thousands of travel
agencies around the world, including the top 10 largest U.S.-based travel
agencies(i); more than 46,000 hotel properties around the globe, including
all 50 of the 50 largest hotel brands in the world based on total number
of guest rooms(ii); and thousands of Web sites/services have their
hotel reservations Powered by Pegasus[TM]. In addition to its corporate
headquarters in Dallas, Pegasus has 22 offices in 16 countries, including
regional hubs in Phoenix, London and Singapore. The company's stock is
traded on the Nasdaq National Market under the symbol PEGS.
This statement contains references to future events and projected results,
including anticipated transactions involving the Company 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 the Company will be as projected. Actual occurrences, results
and performance may differ substantially and materially from those projected
as a result of a number of risks and uncertainties, such as adverse changes
in general market conditions for business and leisure travel as a result of
additional terrorist activities, action by U.S. military forces, changes in
hotel room rates, capacity adjustments by airlines, trends in the overall
demand for travel, and the inherent difficulty in making projections during
this period of uncertainty, as well as other risks and uncertainties
mentioned in this statement or detailed in the Company's periodic reports
and registration statements filed with the Securities and Exchange
Commission including its Form 10-K for the year ended December 31, 2001.
# # #
(i) Travel Weekly, June 25, 2001, "Top 50 Travel Agencies"
(ii) Hotel Business, February 7, 2002, "The Top Hotel Brands" - ranked by
total number of rooms (2001)