Houston, Texas – August 6, 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 Network Optimizer, 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 ("RTDP") 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 Network Optimizer is an extensive optimization system for airlines that incorporates leading-edge dynamic programming science with other network and leg optimization techniques to address the variety of airline challenges such as overbooking, upgrade potential, convertible seats and flexible cabins and produce a set of comprehensive network optimal controls. The outputs from the Network Optimizer module are sophisticated bid-price matrices for precise O&D controls as well as leg or segment allocations to support legacy availability and booking processes. This provides the customers a proven revenue increment of 2% over leg-based controls through the use of network optimization.

The PROS proprietary optimization engine is used for solving network optimization using the Linear Programming and Dynamic Programming methods as well as for overbooking, decrement and convertible cabin optimization. These different optimizations have to be invoked in a specific sequence to generate controls that optimize the network revenue and maintain business constraints on the output. The output is a matrix of bid prices for each flight leg compartment as well as authorization levels by leg/segment class. These are fed into the Reservation system or the RTDP Engine to make real-time availability and booking accept/reject decisions.

The PROS O&D-to-G5 bridge module allows airlines to seamlessly integrate the groups evaluation and acceptance process in the PROS G5 Group Revenue Management System utilizing the network optimal bid prices. This interface will also provide the group utilization figures to the PROS O&D system to synchronize and improve the PROS O&D group decrement.

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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Corporate Communications
PROS
info@prospricing.com
713-335-5151