Houston, Texas – July 20, 2006 —  PROS, a world leader in pricing and revenue optimization science and software, announced strong results for the second quarter ending June 30, 2006.  PROS extended its record of profitability and positive cash flow to 31 straight quarters; and experienced increased revenues, a strong balance sheet, record cash position, increased backlog and no bank debt.

“We have exceeded our targets for revenue and profit by delivering high value pricing solutions to our customers,” stated Bert Winemiller, PROS Chief Executive Officer and Chairman of the Board.  “PROS continues to be recognized as the leader in Pricing and Revenue Optimization and the most financially viable, most experienced provider of pricing solutions.”

Major milestones to date include the following:

• Record Second Quarter and First Half Revenue and Record Cash with no debt.
• Celebrated PROS’ 20th anniversary by recognizing the substantial number of professional staff with over 10 years of PROS experience. 
• Over 470 people attended the PROS 12th Annual Pricing Excellence and Revenue Management conference, making it PROS largest and most successful conference ever.  The event comprised of two separate tracks:  a Pricing Excellence Summit and a Revenue Management Conference.  The next conference will be held on April 22-25, 2007, in Houston, TX.
• New deals closed include solutions for Pricing Analytics, Price List Optimization, Deal Manager, Pricing Manager and Hospitality Revenue Optimization.  Pricing solution implementations include both global and domestic customers. 
• PROS took another step in tightening integration of its solutions with those from SAP AG (NYSE: SAP).  PROS Pricing Management version 4.0 has successfully completed “Powered by SAP NetWeaver®” integration, which expedites the cooperative development for PROS pricing software solutions interfacing with the SAP NetWeaver open integration and application platform.
• Successfully released the Leased Property Pricing System which provides optimal prices for new leases, renewal leases and unit amenities.
• Launched the Product Optimization Solution as part of the PROS Pricing Solution Suite; this solution provides optimal product mix to maximize revenue and profit. 
• Major investment in new science, new software development and new consulting services.  Major releases each quarter for each product.
• A 100% customer retention rate; PROS Client Care provides high quality services to support a large install base of solutions worldwide.  PROS also offers superior customer-based training, pricing audits and user councils.
• Launched the PROS Pricing Webinar Series, which provides information on the value of pricing and grants insight on the ways to achieve pricing excellence within a corporation.
• PROS Chief Scientist Andrew Boyd Elected Chair of the INFORMS Revenue Management and Pricing Section.
• Record headcount with over 250 employees; the employee profile is typically a technical undergraduate degree with a GPA of at least 3.5 and an advanced graduate degree.

“PROS has a strong customer base including numerous Fortune 1000-size companies in 10 major industries,” said Jeff Robinson, Senior Vice President of PROS Pricing Solutions.  “PROS remains a world leader in pricing analytics and profit optimization solutions because of our 20 year history in pricing.”

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