Houston, Texas – July 10, 2003 — PROS Revenue Management, a world leader in pricing and revenue optimization science and software, and the pioneer and dominant provider of revenue optimization to the travel and transportation industry, today announced the successful completion of its state-of-the-art PROS O&D Revenue Management System. All five distinct components, including PROS O&D Forecaster, are feature-complete, in production, and integrate into a holistic network solution for major airline customers. To learn more about the PROS O&D Revenue Management System, the new standard of revenue management systems in the industry, register now for the webcast on August 21, 2003, at www.prosrm.com.

"The combination of PNR-based forecasting with network optimization generate optimal bid-price controls that provide an incremental revenue lift of 2% or more." stated Amit Khandelwal, Director of Airline Product Management at PROS. "The use of PROS O&D Real-Time Dynamic Pricing Engine positions airlines to adapt their inventory controls to the very dynamic market conditions including influx of low-fare competition, alternate pricing models and distribution channel differences. It allows integrated controls for selling over e-commerce channels along with traditional distribution channels and provides the infrastructure for customer-centric revenue optimization."

The PNR-based PROS O&D Forecaster includes major science enhancements that significantly improve forecast accuracy and an advanced architecture that provides high performance scalability to support the world's largest airlines. The PROS O&D Forecaster provides distinct forecasts for bookings and cancellations at various levels of passenger itinerary down to the passenger-type. Forecasts can be created at any level of detail. With itinerary level O&D forecasts, airlines can optimize traffic across the entire network by using sophisticated network-optimization algorithms to realize significant revenue benefits. O&D Forecasting and associated user tools provide the following benefits to the customer airlines:

• Aligning the RM processes and decisions with network planning, pricing and sales departments for a holistic network management approach
• More accurate O&D unconstraining
• More intuitive O&D level forecasting
• Ease of use to influence O&D, POS or higher-level forecast entities

The PROS O&D Forecaster-PROS 5 (Passenger RMS) bridge module allows airlines to seamlessly use superior O&D forecasts aggregated to the leg or segment level to feed the PROS 5 optimization system or the airline's own leg-based RMS system. This provides early incremental benefits from more accurate O&D forecasting and an easier transition to network optimization. It also allows for a low-risk transition of the airlines' RM analysts and its business processes from a leg-based RMS to O&D RMS. The PROS O&D Forecaster has been in production for over nine months now.

For the first time, airlines have a true PNR-based system that matches the critical business functions of an airline. PNRs represent the O&Ds that passengers travel and that airlines price and schedule. PROS' customers estimate annual incremental revenue of 2% over leg-based and non-PNR-based systems. The new proprietary scientific innovations enable large airlines to carry out real-time management of seat inventory to maximize revenue across their entire network. The system employs Bayesian forecasting techniques, high-performance and highly scalable n-tier architecture, an XML web-based thin-customer user interface, and seamless integration with network planning, pricing, and scheduling systems.

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PROS Corporate Communications

email: info@prospricing

phone: 713.335.5151 / fax: 713.335.8144