Houston, Texas – October 28, 2004 —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 that VARIG, South America’s largest international airline and the national flag carrier of Brazil, has licensed the PROS Group Revenue Management System.

Mr. Oswaldo P. Silva Filho, General Manager Pricing and Revenue Management of VARIG, stated that, “This is a large step forward for VARIG. PROS has proven their credibility in sophisticated revenue management. VARIG will use the PROS Group system to better manage our group traffic and manage incremental revenues.”

VARIG has contracted with PROS Revenue Management and purchased the software license for the PROS Group System. Based upon the revenue importance and volume of group business at VARIG, the department of revenue management will, with the Professional Services and Technical staff of PROS Revenue Management, implement the PROS Group System in 2004.

“We at PROS are excited to share our revenue management expertise with VARIG as they continue along their impressive pathway of success,” says Benson Yuen, president of PROS travel and transportation group. “We are thrilled to have this opportunity to escalate our positive relationship with VARIG.”

PROS Group is the state-of-the-art, proven solution for airline group revenue management that allows an airline to efficiently evaluate a group request for travel and respond within minutes. Based on specific economic calculations, PROS Group can assess the displacement cost of accepting a group versus seating individually paying passengers, relative to the historical data of past flights, thereby generating the optimal revenue mix for the flight. Both one-time travel groups and series group travelers are evaluated using this system.

There are more PROS Group Revenue Management Systems installed and operational than any other group revenue management system in the airline industry. VARIG will use the PROS Group System for maximizing revenue opportunities from the evaluation of group requests and for subsequent group tracking to minimize seat wastage across its network.

Upcoming PROS events this year will include Airline Solutions workshops December 2 and 3, 2004 at Bangkok's Conrad Hotel and a second workshop will be at London's Hilton Heathrow Airport Hotel is to be announced. The 11th annual PROS Pricing Revenue Optimization Conference will be held from May 1 – 4, 2005 at the Hilton Americas Hotel in Houston, Texas.

About VARIG
VARIG Brazilian Airlines has been flying the skies of Brazil since 1927. VARIG is the largest air transportation company in Latin America and, together with subsidiaries Rio Sul and Nordeste, operates 91 aircraft, offering the largest, most diversified network of airlines in the country. With this operational alliance, which consolidated management of the group in the market, the passenger now has three times more options of routes and schedules and three times the comfort and convenience, from reservation to boarding. The three companies offer connections between 45 Brazilian cities.

The national network of airlines is inter-connected to VARIG’s international services that, today, directly connect 26 cities in various countries and, since 1997, thanks to connections with the Star Alliance partners" networks - an alliance of strategic cooperation between airlines, uniting VARIG with 14 other renowned companies

Quality, safety and profit are the pillars of VARIG’s current strategy to succeed in today's competitive global commercial aviation markets.

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PROS Corporate Communications

email: info@prospricing

phone: 713.335.5151 / fax: 713.335.8144