Pegasus Systems, Inc.
Ticker:PEGS 3811 Turtle Creek Boulevard, Suite 1100
Exchange:NASDAQ-National Market Dallas, TX 75219
Industry:Service (SIC Code 7389) (214) 528-5656

Offering Information
Type of Shares:Common Shares Filing Date:6/5/97
U.S. Shares:3,573,000 Offer Date:8/6/97
Non-U.S. Shares:0 Filing Range:$10.00 - $12.00
Primary Shares:3,000,000 Offer Price:$13.00
Secondary Shares:573,000 Gross Spread:$0.91
Offering Amount: $39,303,000 Selling:$0.53
Expenses:$750,000 Reallowance:$0.10
Shares Out After:9,429,712

Primary Underwriting Group
ManagerTierPhone
Hambrecht & Quist IncorporatedLead Manager (415) 439-3626
Montgomery SecuritiesCo-manager (415) 627-2100
Volpe, Welty & CompanyCo-manager (415) 274-4463

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Locke, Purnell, Rain & Harrell
Bank's Law Firm: Cooley Godward Castro Huddleson & Tatum
Auditor: Price Waterhouse

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 3/31/97 3/31/96 3/31/97
Revenue:$15.87$4.38$3.80Assets:$13.60
Net Income:-$3.48-$0.39-$0.97Curr Assets:
EPS:-$0.48-$0.05Liabilities:$12.00
Prior EPS:Curr Liabilities:
Cash Flow/Oper:$0.41Equity:$1.60
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a leading provider of transaction processing services to the hotel industry worldwide. The company's THISCO(TM) and TravelWeb(R) hotel room reservation services to improve the efficiency and effectiveness of the reservation process by enabling travel agents and individual travelers to electronically access hotel room inventory information and conduct reservation transactions. The com0pany's HCC service, the global leader in hotel commission payment processing, improve efficiency and effectiveness of the commission payment process for participating hotels and travel agencies by consolidating payments and providing comprehensive transaction reports. The company's electronic interface business for hotel room reservations was established in 1988 by 16 leading hotel and travel-related companies address the need for a neutral, reliable third-party source of hotel reservation information and transaction processing services.

Use of Proceeds
The proceeds from the proposed offering will be used to repay indebtedness payable to certain stockholders of the company and for working capital and other general corporate purposes.

©1997 IPO Data Systems, Inc. - All rights reserved.