Houston, Texas – July 30, 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 Fare 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 PROS O&D Fare Forecaster module utilizes an airline's pricing and revenue accounting data to produce forward-looking passenger value estimates by O&D, booking class, and point-of-sale country. It incorporates interline revenue sharing, agency commissions, and other factors of customer-value differentiation. The valuation takes into consideration the many factors that can cause a difference in value despite a passenger having the same itinerary and fare class. This estimate of passenger value will be used in the availability decision process of whether to accept or reject a booking request and will also be used in the network optimization. International airlines with significant fare differences by point-of-sale and travel agencies will reap significant benefits from the use of more precise passenger valuation in optimization and control. The same applies to capturing true value for passenger traffic on major global carriers selling seats with codeshare and alliance partners. It provides key inputs to driving the PROS O&D Real-time Dynamic Pricing Engine through sophisticated upload caching technology.

Based on empirical feedback from airline customers, this module provides vital feedback to the pricing analysts in terms of which fare products sell more than others and what that means for the overall yields in any given market. It provides yet another crucial avenue for closer integration of pricing and yield management functions. The PROS O&D Fare Forecaster has been in production for one year.

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 platform, 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