Houston, Texas – August 25, 2004—PROS Revenue Management, a world leader in pricing and revenue optimization science and software announced positive results for the second quarter and first half of 2004. PROS extended its record of profitability and positive cash flow to 22 straight quarters. The first half of 2004 maintains PROS strong balance sheet with a strong cash position and no bank debt.

“We are thrilled with our performance because it represents the continuing confidence of our customers and our leadership in Pricing Revenue Optimization,” says Bert Winemiller, Chairman and CEO of PROS Revenue Management. “The demand for Pricing and Revenue Optimization solutions have increased markedly this year. Being the largest and most profitable software company in this business will allow us to accelerate our growth and expansion into different industries.”

Major milestones to date include:

• Closed 14 new deals during the first six months. These purchased solutions include the latest versions of contract price optimization, list price optimization and negotiated deal optimization.
• Recent new customers include a multi-billion dollar building products distribution company, a global package delivery company, and a large medical products manufacturer.
• Expanded the Pricing Optimization Group by 18 new employees to meet the demands of new and existing customers.
• Conducted 19 onsite Business Process Reviews and Audits for customers and prospects.
• Expanded our partnership with the Professional Pricing Society and have conducted monthly Webinars as well as 2 extended online training sessions.
• PROS’ Travel and Transportation customers that are recovering from very difficult market conditions are moving forward with 6 major upgrade purchases.
• Participated in the AGIFORS Revenue Management conference with two science presentations by Dr. Ed Kambour and Dr. John Salch.
• Presented in the 4th Annual INFORMS Revenue Management and Price Conference with three presentations, including the keynote by Dr. Andy Boyd.

PROS 11th Annual Pricing and Revenue Optimization Conference:

• PROS 10th Annual Pricing and Revenue Optimization Conference was held in early March 2004 with a record attendance of over 300 industry and academic leaders. At the conference PROS showcased its latest product enhancements including:
  • Breakthrough forecasting and pricing optimization science to scientifically address the unique “Priceable” and “Yieldable” demand types given the increase in price sensitivity.
  • State-of-the-art decision support tools, user workflow, and navigation aligned with today’s dynamic business processes.
  • Extensive new analytic executive reporting and features to help you proactively monitor your business performance.

PROS Science Advisory Board:

• PROS had a number of meetings with members of its Science Advisory Board which includes many prestigious names and authors in the Pricing Revenue Management field such as:
  • Dr. Peter P. Belobaba – Principal Research Scientist, Massachusetts Institute of Technology
  • Garrett van Ryzin – Associate Professor, Graduate School of Business Columbia University
    • Recently published a book “The Theory and Practice of Revenue Management”
  • Sheryl Elaine Kimes – Associate Professor, School of Hotel Administration
  • John Birge – Professor, Northwestern University

PROS announced the strengthening of its executive team with the promotions of John Riddell, SVP Pricing Solutions, Jeff Robinson, VP Pricing Solutions, and Andres Reiner, VP Software Development. With these promotions, PROS senior executive team has over 100 years of PRO experience.

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PROS Corporate Communications

email: info@prospricing

phone: 713.335.5151 / fax: 713.335.8144