Houston, Texas – June 18, 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 airline industry, continues to implement the PROS 5 Low Fare System for their customers to more effectively compete in a changing low fare environment without revenue dilution.

PROS 5 is the state-of-the-art system enabling airlines to statistically forecast demand for their flights. Using historical data that captures flight information, advanced booking activity, and actual boarding statistics, the highly advanced optimizing and forecasting engines produce fare class allocations that maximize revenues for every flight. Leading the industry, PROS has licensed seventy-five PROS 5 Systems. There have been more installations of PROS 5 than any other revenue management system in the world. PROS customer carriers have reported an increase of 6-8% in revenues due to the implementation of the PROS 5 Revenue Management System.

PROS Revenue Management has been working over the past three years to develop the pricing, forecast, and optimization sciences that can successfully support low fare optimization strategies. The PROS 5 Low Fare System is one solution in a suite of low fare pricing optimization products that combines low fare environment knowledge and advances in PROS science. Many PROS customers have already implemented the PROS 5 Low Fare System, including Air New Zealand, America West, Frontier Airlines, Spirit Airlines, and China Southern. Other airlines scheduled to receive the PROS 5 Low Fare System are Aer Lingus, AeroMexico, Emirates, Alianza Summa, Mexicana, All Nippon Airways, and LanChile.

The PROS 5 Low Fare System consists of major functionality benefits to PROS customers such as:

• Minimized revenue dilution by better understanding consumer behavior when there is minimal price differences in the low fare environment
  
  
• Adaptation of existing tools for increased forecast accuracy for airlines operating in a
  mixed business model of traditional and low fare markets
  
  
• Expanded flexibility to apply business rules to complement revenue management science

A best practices template has been developed, and along with customer implementations of the PROS 5 Low Fare System, best practice training will be conducted to assist PROS customers in their low fare strategies.

All implementations and training will be completed by September 2003.

The PROS 5 Low Fare System is part of the next generation Low Fare Pricing Optimization Suite. The PROS Low Fare Suite incorporates proven science that has been implemented in the automotive and energy industries. PROS next generation Low Fare Pricing Optimization Suite will help airlines capture, store, and analyze competitive fare data to help analysts make decisions about the number of low fare seats to make available.

With diverse consumer behavior, multiple distribution sources, and the disappearance of market segmentation among fare products, airlines need to apply new revenue management techniques. These techniques developed by PROS will enable airlines to continue opaque market segmentation while maintaining price transparency. PROS is encouraging airlines to consider two distinct revenue management products for their market segments; the traditional product with rules and restrictions, and a dynamic pricing product based solely on customers' willingness-to-pay. The next generation Low Fare Pricing Optimization Suite from PROS will encapsulate the analysis of these two distinct products to minimize revenue dilution.

Benson Yuen, president of the travel and transportation group at PROS, states, "All levels of the airline organization need to understand how low fare pricing optimization impacts markets. PROS Revenue Management has been developing and proving our pricing science for over three years and we look forward to providing airlines with the complete Low Fare Pricing Optimization Suite that will enable them to more effectively compete in a continuously changing environment of low fares without revenue dilution."

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