Air China - China's Largest Airline - Selects PROS Revenue Management.

Business Editors

HOUSTON--(BUSINESS WIRE)--July 22, 2003

PROS Revenue Management, the world's 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 Air China, China's largest airline and the national flag carrier of China, has licensed the PROS Network Fare Analysis & Sales Strategy System.

PROS Network Fare Analysis & Sales Strategy System ("PROS NAS") is the world's only network-oriented fare class segmentation system. It evaluates a carrier's existing fare products and network traffic flows, as well as network displacement costs, point-of-sale attributes, business policies, and alliance requirements, to create a fare class structure that maximizes revenue and develops optimal sales targets. PROS NAS is also the system to enable airlines to bring their current fare products in line with alliance agreements and fare filing tariff requirements, while being able to manage the business needs unique to their markets. PROS NAS provides information concerning optimal network flows that can synchronize sales targets with revenue management practices. Furthermore, it offers reporting functionality that aids analysts in reviewing market data and traffic flows. PROS NAS uses O&D level information to generate inputs into a carrier's leg or segment based revenue management system, as well as being an important first step towards O&D control. Based on simulations conducted with airline data, carriers can realize network revenue increases of 1% to 3%.

Mr. Cai Jianjiang, Vice President Commercial at Air China, states, "Air China has been a user of the PROS 5 Revenue Management System since 2000, and PROS has been a strong partner. I expect that Air China will earn even more revenue by dynamic business process renovation using the new PROS Network Fare Analysis & Sales Strategy System."

"We are honored to continue our revenue management relationship with Air China," says Benson Yuen, president of PROS travel and transportation group, "The revenue management solution that PROS is providing to Air China will generate incremental revenue and will increase passenger satisfaction."

About PROS

PROS Revenue Management is the world's leader in pricing and revenue optimization solutions and the pioneer and dominant provider of revenue optimization to the travel and transportation industry. PROS provides system solutions to the airline, energy, healthcare, hospitality, broadcast, rail, cargo, petroleum, and other industries and has licensed 242 systems to 103 clients in 39 countries. PROS' clients include 17 of the top 25 carriers in the airline industry.

The PROS mission is to maximize the revenue of each client using PROS' world-leading revenue optimization science, enterprise profit optimization, and pricing optimization solutions. PROS' clients report annual incremental revenue increases of 6-8% as a result of demand forecasting and revenue optimization. PROS' solutions forecast demand, optimize inventory, and provide dynamic pricing optimization to maximize revenue.

Founded in 1985 in Houston, PROS Revenue Management has a five-year compounded revenue growth of 20+%, in large part due to the intellectual capital of its staff. Over half of PROS' professional staff has advanced degrees and the staff speaks a cumulative total of 26 languages. The company is profitable with Year 2002 revenue of $34 million. For more information on PROS Revenue Management, please visit www.prosRM.com or call 713-335-5151.

About Air China

Founded on July 1, 1988, Air China is the largest air carrier in China in terms of traffic volume and company assets. Engaging in international and domestic passenger and cargo flight services, Air China is the only national flag carrier in China. Air China currently has a total of 69 airplanes, operating 114 routes, including 43 international routes and 71 domestic ones. This equates to more than 1000 scheduled flights on weekly basis, serving 29 cities in 19 countries and most of the provincial capitals, major cities and tourist attractions in China.

In 1995, Air China was awarded international "Five Star Diamond award" presented by the American Academy of Restaurant and Hospitality Sciences for it's achievements in flight safety, customer service and quality operations. In the 1999 Brand Recognition contest in China, Air China ranked the first place among airlines which annually transport over 6 million passengers.