Houston, Texas – September 25, 2004 — PROS Revenue Management, a world leader in pricing and revenue optimization science and software, announced positive results for the third quarter and the first nine months of 2004. In particular, the Airline Group showed outstanding growth with substantial new customer contracts. PROS extended its record of profitability and positive cash flow to 23 straight quarters. PROS maintains its strong balance sheet with a strong cash position and no bank debt.

“We are thrilled with the Airline Group performance during these difficult times because it represents the continuing confidence of our customers in the value of PROS solutions and services,” says Bert Winemiller, Chairman and CEO of PROS Revenue Management.

“The demand for Pricing and Revenue Optimization solutions has increased markedly this year. Being the largest provider of such solutions enables us to expand our services and to continuously enhance our products for the benefit of our airline customers,” says Benson Yuen, President of the Airline Group.

Major 2004 milestones achieved by the Airline Group include:

• Seven new airlines joined the PROS customer base
• Thirty-three new contracts for products and services generated within the past nine months
• Four new contracts for components of the PROS O&D solution
• Deployment of the new PROS Hybrid Forecasting and Optimization technology to maximize airline revenue in a restriction-free pricing environment
• Two airline customers successfully completed full-production cutover of the PROS O&D System
• One airline customer successfully achieved full-production cutover of the PROS O&D Cargo System
• Participated in the AGIFORS Revenue Management conference with two airline presentations by Dr. Ed Kambour and Dr. John Salch
• Participated in the 4th Annual INFORMS Revenue Management and Pricing Conference with three presentations, including the keynote address by Dr. Andy Boyd
• Brian Wishlinski joined PROS to lead the product strategy for the next-generation of the PROS O&D Solution

PROS 10th 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 hybrid 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

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PROS Corporate Communications

email: info@prospricing

phone: 713.335.5151 / fax: 713.335.8144