Houston, Texas – January 23, 2006 — PROS, a world leader in pricing and revenue optimization science and software, announced strong positive results for the year ended December 31, 2005.  PROS extended its record of profitability and positive cash flow to 28 straight quarters, and ended 2005 with increased revenues, a strong balance sheet, record cash position, record backlog, and no bank debt.

“PROS set financial records in 2005, thanks to our loyal customers and strong, stable leadership in pricing solutions, “stated Bert Winemiller, Chairman and CEO.  “We continue to be the leading provider of pricing analytics and profit optimization solutions for numerous Fortune 1000-size companies.  By being the largest, most profitable and viable software company in this market, we continue to increase our customer base as well as accelerate investment in advanced science and high performance scalable pricing solutions.” 

PROS continues to be recognized as the leader in the Pricing Revenue Optimization space by various members of the analyst community.  AMR Research noted that PROS is one of the pioneers of the price management market with advanced capabilities across all three areas of price management. Yankee Group also gave PROS the highest ratings in all categories of Price Management and Profit Optimization. Additionally, 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. PROS is the only vendor that meets all the vendor viability criteria established by the analyst community.

Major milestones to date include:

• 40 new solution contracts 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.
• Completed the production rollout of the PROS Pricing Solution to 900+ sales representatives that make 20,000+ optimized price quotes everyday.
• 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.
• Registration is open for the March 5-7, 2006, Pricing Excellence Summit which will be hosted at the Hilton Americas Hotel in Downtown Houston. This conference is designed for executives of Fortune 1000 companies who have a direct or supporting role in developing and implementing their company’s pricing strategy.

Financial Highlights:

• Revenue in excess of $35 million
• Profitability and positive cash flow for 28 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
• Headcount of 250 employees
• No debt
• Record backlog of $40+ million

Winemiller concluded, “PROS proven track record, proven processes, and proven solutions are the corner stone of our success that have allowed us to attain the highest levels of customer satisfaction and financial strength.”

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