Houston, Texas – February 3, 2005 — PROS Pricing Solutions, a world leader in pricing and revenue optimization science and software, announced positive results for the fourth quarter and year-end 2004. PROS extended its record of profitability and positive cash flow to 24 straight quarters. PROS maintains its strong balance sheet with a strong cash position and no bank debt.

Major Pricing Solution milestones in 2004:

• New customer achieves 50% increase in net income in first year of PROS implementation.
• New customer optimizes prices by targeting 24 different market segments achieving system payback in four months.
• New customer achieves additional revenue of $250,000 a day by eliminating profit leaks.
• New PROS system up and running within two months and on track to achieve system payback within six months.
• New customer rolls out pricing solution to 400+ sales people that immediately start quoting higher prices.
• New versions of PROS List Pricing, Contract Pricing, and Negotiated Deal Pricing.

Major PROS milestones in 2004:

• Total revenue exceeded $32M for 2004
• Profitability and positive cash flow was achieved for 24 continuous quarters
• Over $19M in new contracts signed
• 23 new deals closed; purchased solutions include the latest versions of the PROS Price Management System as well as our Price List Optimization, Contract Price Optimization, and Pricing Analytics solutions
• 39 onsite Business Process Reviews and Audits conducted for customers and prospects

“We have exceeded our targets for revenue and profits by getting new customers and delivering new products to existing customers.” says Bert Winemiller, Chairman and CEO of PROS Pricing Solutions. “PROS’ continued financial strength and business success contributes to the overall value proposition and the long term partnership we have with our customers.”

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