Houston, Texas – August 18, 2005 — PROS, a world leader in pricing and revenue optimization science and software, announced strong positive results for the second quarter and the first half of 2005.  PROS extended its record of profitability and positive cash flow to 26 straight quarters. The first half of 2005 maintains PROS strong balance sheet with a strong cash position, strong backlog, 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. “PROS has established itself as the global leader in pricing analytics and profit optimization solutions with the leading companies in 10 major industries. Being the largest and most profitable software company in this market has allowed us to accelerate our growth and accelerate investment in advanced science and high performance scalable solutions.”

PROS has been recognized as the standout in the Pricing Revenue Optimization space by the members of the analyst community. PROS received the highest ratings in all categories of Price Management and Profit Optimization in a new report by Yankee Group.  The report is entitled Price Management and Profit Optimization Solutions Are the Best-Kept Secrets in Enterprise Software. Forrester Research identified PROS as the best-of-breed vendor with the strongest current product offering, product strategy, and market presence in the Price Solutions market.

Major milestones to date include:

• 17 new deals closed; purchased solutions include the latest versions of the PROS Price Management System as well as our Advanced Revenue Management, Price List Optimization, Contract Price Optimization, and Pricing Analytics solutions.
• Closed contracts with two Consumer Products customers in the first half of 2005.  PROS solution will help these companies price thousands of SKUs at retail, and with inventory management, pricing strategy, supply chain, and optimization of the product planning process.
• Six new airlines joined the PROS customer base. Five major new contracts for the PROS O&D Solution. Six deployments of the new PROS solution to address the challenges of a restriction-free pricing environment.
• Completed the production rollout of the PROS Pricing Solution to 900+ sales representatives that make 20,000+ optimized price quotes everyday.
• Hired 40 new employees to fill professional staff positions in software development, science, and professional services.
• Major investment in new science, new software development, and new consulting services.
• Record setting attendance for the PROS 11th Annual Pricing Revenue Optimization Conference held May 1-4, 2005 in Houston, Texas at the Hilton Americas Hotel.  The conference was comprised of two separate tracks: a Pricing Excellence Summit and a Revenue Management Conference, over 460 people attended the combined event, making it PROS largest conference ever.

Financial Highlights:

• Profitability and positive cash flow for 26 continuous quarters
• Positive cash flow resulting in an all time high cash position of $30+ million
• Capital expenditures in high-performance application servers, database servers, and mass storage
• Revenues up 8%
• Headcount up 15% to 225 employees
• No Debt
• Backlog of $30+ million

“PROS has achieved the highest levels of customer satisfaction and financial strength by developing PROS Pricing Solutions that incorporate the most advanced science in a configurable software platform that has one version of source code,” says Winemiller. “The PROS Solution Platform allows unique configured implementations for each customer. It also provides high performance scalable solutions for calculation intensive batch processing, for real-time optimized transaction processing, and for e-commerce processing handling 500+ transactions per second.”

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