PHOENIX - Pegasus Solutions, Inc. (Nasdaq:PEGS - news) today announced that eRyokan Service K.K., a travel reservations company based in Tokyo, is tapping Pegasus for seamless connectivity to the global distribution systems (GDSs) and the Internet via Pegasus’ central reservations system (CRS) and electronic distribution services. Pegasus will also be powering the online hotel reservations for eRyokan’s new Web site, www.eryokan.co.jp. Pegasus Solutions is a leading provider of hotel industry transaction processing solutions and electronic commerce services.

eRyokan Service was founded by owners of traditional Japanese inns, known as ryokans, to introduce the ryokan concept to the world, ultimately taking advantage of the public’s growing interest in Japan as a destination. By using Pegasus Solutions’ CRS and advanced distribution technology, eRyokan will be able to manage its member room rates and inventories more effectively and receive GDS bookings from travel agents around the world. In addition, for the first time, eRyokan’s inns will be able to receive real-time Internet reservations from top travel Web sites, as well as via its own branded site, which will be ``Powered by Pegasus(TM)’’ using Pegasus’ NetBooker Custom(TM) booking engine.

“This new agreement is a unique opportunity to provide sophisticated reservations technology to a traditional Japanese hospitality-oriented company…which is rare in today’s industry,’’ said Hideo Hirahara, president of eRyokan Service K.K. ``By utilizing Pegasus’ technology, we instantly gain a global presence that can catapult eRyokan into the international hospitality arena, critical for ryokan inns’ long-term growth.”

eRyokan has initially signed on more than 120 ryokans that will access the Pegasus CRS and will be included in Pegasus’ Online Distribution Database. As a result, ryokans will be available for real-time bookings on Web sites that are part of Pegasus’ Online Distribution Network, including Japan’s Recruit Isize Travel (www.isize.com), TravelNow.com, TravelWeb.com, Lastminute.com, and Expedia.com. By the end of 2001, eRyokan intends to add 2,000 ryokans to its Web site and database.

“As a new Internet travel venture in Japan, eRyokan exhibits the same entrepreneurial spirit that Pegasus was founded on and upholds today,” said Alan White, senior vice president - Application Service Processing, Pegasus Solutions. “The agreement with eRyokan allows Pegasus not only to quickly enter the Japanese market with our technology services, but also to leverage the opportunity to properly introduce the rich history and tradition of the Japanese culture to the world at large.”
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