Foundation of Pegasus Reisen Ltd by Mr. Erdal Ilicali and Mr. Giuseppe Olivares.

Start of business activities as tour operator company specializing in creating "City Breaks" (land packages) in combination with year-round charter flights to London and back-to-back charters to other European cities, such as Paris, Rome, Venice and Pisa. To meet the requirements of tourists arriving on those same flights into Austria, an inbound department was set up and developed by Renate Ilicali.

The programs were extended to seaside holiday destinations and Pegasus was the first Austrian operator to introduce charter flights to Antalya on the Turkish Riviera and Calabria, Italy.

Erdal Ilicali bought Giuseppe Olivares' shares.

Again Pegasus acted as a trendsetter in the market and introduced regular charter flights to an until then completely unknown destination: Cuba.

Backed by the great success of the Cuban operation, a chain of charter flights to Florida followed and confirmed again Erdal Ilicali´s reputation of being a pioneer in tourism.

Pegasus created a China product which was affordable for the general public and no longer just an extremely expensive destination for high level study groups. First the program was based on scheduled flights. In 1991 charter flights by Air China followed and brought in a year more than 2,800 Pegasus guests to China. This has been the base for our long-lasting and excellent friendship with business partners there.

Pegasus became General Sales Agent for Istanbul Airlines and enlarged the Turkey program.

Charter flights to the Canary Islands were set up. During these years, the inbound department steadily grew, specializing in the Italian market. It became a major partner for many important tour operators and travel agencies in Italy. Space in the same office became tight, since an enlargement of the inbound markets was also planned, therefore Renate and Erdal Ilicali decided to separate the business into two independent companies.

Pegasus Incoming LTD, a new company owned and managed by Renate Ilicali, was founded and started operating on April 1^st, 1990 in 1030 Wien, Ungargasse 71. Our goal was to increase our market share in Europe and overseas by visiting agents in their countries, attending workshops and fairs organized by the Austrian Tourist Board and inviting Agent groups on educational tours to our office.

Following the demands of its many business partners, Pegasus Incoming expanded to Hungary and opened an office in Budapest.

Backed by the great success of the Hungarian operation and the continuing support of the business partners, who were urgently asking for professional assistance in selling this upcoming destination, Pegasus decided to open an office in Prague, Czech Republic, thus completing the Imperial Triangle in Central Europe and enabling partners to have one contact for the whole area.

Turnover increased and the office in the 3^rd district in Vienna became too small. An office building was purchased in Vienna, Haydngasse 21, 6th district, next to Mariahilferstraße, the commercial area of the city.

Together with the Vienna International Airport the Via Vienna Project was launched. Pegasus joined forces with the Vienna International Airport to promote Vienna on the Asian market as the gateway to the New Europe. A special brochure under the name "Waltz into Europe via Vienna" was published in Mandarin, Korean, Thai and English and distributed by recognized agents.

Pegasus set up Travelkey as a brand name for the pool of Inbound operators with the goal of joint promotional activities at trade fairs.

Pegasus Businesskey, an independent division, was founded in partnership with Christian Bender and Ursula Pontoni to provide marketing services and incentive programs for Austrian-based companies. Pegasus BusinessKey's specialty, however, is handling all arrangements for performing groups (choirs and orchestra's) from all over the world through its Concerts-Austria department.

Pegasus´ goal has always been to be close to its clients in order to understand their needs better and to serve them well. Therefore we have set up offices to represent us in China and the USA, backing them by experienced counterparts in our offices who speak Mandarin and English. In September Pegasus Incoming and IMTC, Inc. formed an alliance, IMTC/Pegasus, in order to better serve U.S. travellers to Austria and its neighbouring countries, such as Hungary and the Czech Republic.

German Department was set up as independent division and is managed in partnership by two market experts: Trude Wukoschitz and Eugen Wanner.

We celebrated 20 years in business.

In March we set up Pegasus Thailand Representative office in Bangkok and in September we set up the sales office in Istanbul, Turkey.

In April Raiffeisen Reisen took over for 5 years 51% shares of the company. This contract ended in 2009 with a mutual agreement.

In June, Pegasus has been awarded the Exportpreis 2004 by the President of the Austrian Federal Economic Chamber and the Federal Minister of Economics and Labor. This prize honors an Austrian entrepreneur's outstanding and exemplary efforts and successes in foreign markets. It is awarded to those companies that are instrumental in the economic revival of Austria.

At the beginning of the year we took over for 5 years the management of Krems Tourism in cooperation with the local municipality. Krems is located on the Danube at the entrance to the Wachau (UNESCO World heritage) area and boasts a history of more than 1000 years.

In spring we participated in an official business delegation to China, organized by the Austrian Federal Economic Chamber and headed by Federal Chancellor Dr. Wolfgang Schüssel.

We also set up a separate congress division under the brand Pegasus Congress to cater to the needs of this specific market segment.

In September we participated in a trade mission to India organised by the Austrian Chamber of commerce and decided to enter.

In November, we also celebrated our 25 years silver jubilee party with a great evening in the Hofburg (Imperial Palace) in Vienna with more than 350 guests from Austria and all 5 continents.

We started this year by opening our new office in Frankfurt, Germany, Jan. 2^nd. With the new destination Germany we established a perfect completion to our product offer.

We set up a special department taking care of the needs of Central Eastern European markets. Also we established a seperate division Pegasus Japan with Carmen Decker as Partner and Director.