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<ITEMS>9.01
<FILING-DATE>20070809
<DATE-OF-FILING-DATE-CHANGE>20070809
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<CONFORMED-NAME>PROS Holdings, Inc.
<CIK>0001392972
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<IRS-NUMBER>760168604
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
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<BUSINESS-ADDRESS>
<STREET1>3100 MAIN STREET
<STREET2>SUITE 900
<CITY>HOUSTON
<STATE>TX
<ZIP>77002
<PHONE>713-335-5151
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<STREET1>3100 MAIN STREET
<STREET2>SUITE 900
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<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">UNITED STATES</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">WASHINGTON,
D.C. 20549</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">FORM 8-K</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;">PURSUANT TO SECTION 13 OR 15(d)OF THE
SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of
earliest event reported): </font><b>August 6, 2007</b></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;">PROS Holdings, Inc.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant
as specified in its charter)</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Delaware</b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">76-0168604</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State of
  incorporation</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S. Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or organization)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0pt .7pt 0pt .7pt;width:2.38%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="48%" valign="top" style="padding:0pt .7pt 0pt .7pt;width:48.8%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
  No.)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><!-- SET mrlNoTableShading -->3100 Main Street, Suite 900</p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Houston, TX, 77002</font></b></p>

<p style="margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices)</font></p>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">(713) 335-5151</font></b></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s Telephone
Number)</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Written
communications pursuant to Rule 425 under the Securities Act (17CFR230.425)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17CFR240.14a-12)</p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR240.14d-2(b))</p>

<p style="font-size:10.0pt;margin:0pt 0pt .0001pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act
(17CFR240.13e-4(c))</p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Item&nbsp;2.02. Results of Operations and Financial
Condition.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On August 6, 2007,
PROS Holdings, Inc. (&#147;PROS&#148;) issued a press release (the &#147;Press Release&#148;) in
which PROS announced its financial results for the quarter ended June&nbsp;30,
2007.&#160; The announcement was filed on Form
8-K on August 6, 2007, with the full text of the Press Release attached as an
exhibit.&#160; PROS also conducted a
conference call (the &#147;Conference Call&#148;) on the same date to discuss these
results and responded to questions from the analysts.&#160; The transcript of the prepared remarks and
the subsequent questions and answers for the Conference Call is attached hereto
as Exhibit 99.1.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The transcript of
the Conference Call contains forward-looking statements regarding PROS and
includes cautionary statements identifying important factors that could cause
actual results to differ materially from those anticipated. The expectations
and projections regarding PROS future performance referenced in this transcript
are based on currently available competitive, financial, and economic data,
along with PROS operating plans, and are subject to future events and
uncertainties.&#160; PROS cautions readers
that in addition to the cautionary statements, all forward-looking statements contained
therein should be read in conjunction with PROS SEC filings, including the risk
factors described therein, and other public announcements.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information in
this report, including the exhibit hereto, shall not be deemed to be &#147;filed&#148;
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended,
or otherwise subject to the liabilities of that section or Sections 11 and
12(a)(2) of the Securities Act of 1933, as amended. The information contained
herein and in the accompanying exhibits shall not be incorporated by reference
into any registration statement or other document filed with the Securities and
Exchange Commission by PROS, whether made before or after the date hereof,
regardless of any general incorporation language in such filing, except as
shall be expressly set forth by specific reference in such filing.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Item&nbsp;9.01. Financial Statements and Exhibits.</font></i></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp;Exhibits </font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->99.1</p>
  </td>
  <td width="94%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:94.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Transcript of PROS Second Quarter 2007 Conference
  Call on August 6, 2007.</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.98%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PROS HOLDINGS, INC.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: August 9, 2007</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="23%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:23.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Charles H. Murphy </font></p>
  </td>
  <td width="23%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:23.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charles H. Murphy</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="53%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:53.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:46.02%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial Officer and Executive Vice President</font></p>
  </td>
 </tr>
</table>

<p align="right" style="margin:0pt 0pt 12.0pt 36.0pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
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<p align="right" style="margin:0in 0in 12.0pt .5in;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.1</font></b></p>

<p style="color:#6B9915;font-weight:bold;letter-spacing:2.0pt;margin:0in 0in 12.0pt;text-transform:uppercase;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-transform:none;">PRESENTATION</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:1.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Good day, ladies and
gentlemen, and welcome to your Q2 2007 PROS Holdings Inc. earnings conference
call. My name is Robert. I will be your operator today. (OPERATOR
INSTRUCTIONS). At this time I would like to turn the call over to your host,
Mr. Charlie Murphy.</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Good afternoon everyone.
Thank you for joining us today to review our second quarter 2007 results. With
me on the call today is Bert Winemiller, Chairman and Chief Executive Officer.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Bert and I will make a
few prepared remarks, and then we will open the call to questions. Please note
that our remarks today contain forward-looking statements. These statements are
based solely on present information and are subject to risks and uncertainties
that can cause actual results to differ materially from those projected in the
forward-looking statements. Please refer to our prospectus previously filed
with the SEC, and the risk factors contained therein. Also, please note that a webcast
of today&#146;s call will be available in the Investor Relationship section of our
website.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">With that, I would like
to turn the call over to Bert. He will provide you with some color on the first
quarter results and an update in our business. I will come back to give further
details regarding our financials.</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I would like to thank
all of you for joining us on our first conference call as a public company. The
completion of our IPO at the end of June was just one event in what was another
successful quarter for PROS. We are pleased to share highlights from the second
quarter and first-half of 2007. And we look forward to speaking with the
analysts and the investors on a regular basis in the future.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The second quarter of
2007 marked record revenue and strong operating income. Second quarter revenue
was $14.4 million, which was up 34% on a year-over-year basis. Our non-GAAP
operating income was $2.4 million, up 65% year-over-year. Our second quarter
results were impacted by non-recurring expenses related to the debt incurred to
redeem preferred stock and fund a dividend before the Company went public.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Since this is our first
earnings call, and we have not yet had a chance to meet with every one who is
on the call, I would like to share with you why we are excited about our
long-term opportunity for growth and to briefly summarize some of the recent
PROS operating highlights.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">PROS is a market leader
in pricing and revenue optimization software products, a market which we
believe is large, growing, and underserved. The primary competition in this
market is the use of spreadsheets, because currently installed enterprise
resource planning, supply chain management and customer resource management
systems do not have the data, the functionality or the science to achieve
pricing excellence through Pricing Analytics, Pricing Execution, and Pricing
Optimization.</font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="#003399" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The power of pricing is
dramatic, and can have a significant impact on a company&#146;s financial results. A
McKinsey study showed a 1% increase in price can increase operating margin by
11%. Traditional pricing strategies of cost plus and match the competition
caused unnecessary discounting and destructive pricing policy.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Our pricing and revenue
optimization software products are used by large Fortune 1000 sized enterprises
to find the pocket price. That is the price that customers actually pay after
price concessions, rebates and volume discounts. This enables our customers to
determine their pocket margin for individual products and customers. That
provides unparalleled visibility into the pricing decisions that affect
margins.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">PROS software also
enables customers to take immediate effective action to stop price-based profit
leak, as well as unnecessary discounting and destructive pricing practices.
Most important, PROS products bring all of the relevant pricing information to
the decision-maker at the time the price is quoted and the sale transaction is
actually made. Through PROS&#146; optimized pricing based on scientific willingness
to pay, our customers improve margins, optimize inventory and improve customer
satisfaction.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">While pricing and
revenue optimization software is still an emerging market, leading blue-chip
companies are recognizing its value. An AMR study showed the market for pricing
management software growing to $1 billion by 2010. And our own bottom-up
analysis based on Hoovers&#146; data identified a $2.5 billion market comprised of
U.S.-only companies with over $500 million in revenue, and just in our target
industries.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The PROS
high-performance software architecture supports real-time high-volume
transaction processing, and allows PROS to handle the processing and database
requirements at the most sophisticated and largest customers, including
customers with hundreds of simultaneous users and split second electronic
transactions.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Eight years ago we
started building the PROS pricing platform that incorporated the advanced
innovative science and high-performance real-time transaction architecture that
we developed to provide pricing optimization to the airline industry. This
technology and science transformation provided the capabilities to solve the
most complex and challenging pricing problems across many industries. Our
solutions especially benefit manufacturing, distribution, services, hotel,
cruise and airline industries, where prices change on a daily or intraday
basis, and competition is fierce and pricing practices have a profound impact
on profitability.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Today PROS has over 90
blue-chip customers in these target industries, with over 200 product
installations. Supporting these customers is a strong PROS intellectual capital
base. We have over 300 employees, including 30 scientists. More than 100 of our
employees have received advanced degrees, and over 20 have Ph.D.s. PROS has
very intelligent people dedicated to developing innovative solutions to complex
problems. And our experienced management team has been together for over eight
years.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Looking at our second
quarter license and implementation revenue made up 69% of our total revenue,
with maintenance making the other 31%. Within license and implementation 62% of
revenue in the second quarter of 2007 was from manufacturing, distribution,
services and hotel, cruise industries, and 38% was from airline. PROS is a
truly global Company with customers all around the world.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">65% of our revenue in
the second quarter of 2007 was from outside the United States. Also, during the
quarter and year-to-date 95% of our airline revenue was from outside the United
States. The international airline industry is profitable, expanding as positive
momentum. And it is a good business for PROS.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In June of 2007 PROS
conducted our second annual China pricing excellence conference in Guangzhou,
China, with over 70 pricing professionals attending. PROS focus is on customer
satisfaction and long-term partnerships with our customers. PROS customer
support provides high-quality services to our large, global installed customer
base. In the second quarter PROS maintained a high customer retention rate,
with maintenance renewal rates in the mid 90% range. This is best in class.
PROS improved customer satisfaction by enhancing the PROS support Web, a portal
on our website, which allows customers to easily submit, view and update their
PROS product support incident, as well as search and read knowledge-based
pricing articles.</font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="#003399" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In April of 2007 during
the quarter PROS hosted over 500 attendees at the PROS 13th annual pricing
summit, making it our largest and most successful event ever. The PROS pricing
summit is the world&#146;s largest conference dedicated to pricing excellence and
pricing science.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Also, during the second
quarter PROS held product user advisory councils, which provide a forum that
allows pricing decision-makers and managers to share knowledge and experiences,
stay abreast of pricing excellence practices, and review updates to the PROS
product roadmap.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Also, during the second
quarter PROS delivered major new enhancements to the PROS Pricing Solution
Suite, which represents the continuous innovation of our best in class pricing
and revenue optimization product set. Examples of some of these enhanced
capabilities include price opportunity reports that quantify the benefit of
price, cost and margin improvement so that decision-makers can focus on the
highest value opportunity first. Margin variance reports that monitor changes
to price, cost, volume, product mix and customers to identify the root causes
of margin differences over time. And portfolio analyses that identify
opportunities to rationalize product and customers by trimming unprofitable
business.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In summary, our second
quarter results were strong, and we continue to experience strong demand for
our pricing and revenue optimization software products. As I have indicated, we
believe the market for pricing optimization software products is large and
unpenetrated, and creates a great opportunity for PROS. There are a lot of
exciting activities going on with PROS now. And we look forward to updating you
on our progress against these initiatives in the quarters to come.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">With that, let me turn
it back over to Charlie so he can walk you through some of the financial
details of the second quarter.</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I will start by
providing you with the details on our second quarter and year-to-date June 30,
2007 operating results, and then comment on the balance sheet and cash flow
items and provide you with financial guidance for the third quarter and full
year. Since this is our first public call announcing financial results, I will
be providing more comments than likely will be needed in subsequent calls.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">First, let&#146;s start with
the highlights in the income statement. As Bert mentioned, we&#146;re very pleased
with our performance, highlighted by total revenue which was a record $14.4
million for the second quarter, up 34% on a year-over-year basis, and 7% over
the prior quarter. Year-to-date total revenue was a record $27.9 million, up
37% on a year-over-year basis.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Looking at details,
revenue from licenses and implementation services, which are generally
recognized as implementation services are performed on a percentage of
completion basis, were $9.9 million for the second quarter and $18.9 million
year-to-date. This represents year-over-year growth of 49% and 53%,
respectively. As a percentage of total revenue license and implementation
revenue was 68% compared to 61% year-to-date in 2006.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Regarding revenue, we
are frequently asked what is the Company&#146;s revenue concentration in the airline
industry, and what is the risk regarding the Company&#146;s airline business?
License and implementation revenue from the airline industry made up 38% of
total license implementation revenue in the second quarter, and 36% of total
license implementation revenue year-to-date.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In addition, airline
revenue outside the United States represented 95% of total airline revenue for
both the quarter and year-to-date. This is significant because based on recent
reports the airline industry outside the U.S. is profitable, while there are a
number of U.S. carriers that continue to incur losses. While there is a risk
with any customer and industry, we believe the Company&#146;s risk associated with
airlines is broadly diversified, both by geography and over our number of
customers.</font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="#003399" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Maintenance revenue commences
following completion of the implementation of the software, and therefore has
lagged the growth of our license implementation revenue. Maintenance renewal
rates in 2007 continued in the mid 90s percentage range, which is a
confirmation of customer satisfaction with our products and services and the
continued strength of our technology.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Maintenance revenue was
$4.5 million in the second quarter and $8.9 million for the six months,
representing a year-over-year growth of 11% as 12%, respectively. Our revenue
is geographically dispersed because we sell our solutions to a global client
base. Approximately 65% of our revenue was generated outside the United States
during the quarter and year-to-date. This is consistent with last year.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I will now comment on
non-GAAP gross profit. Non-GAAP gross profit was $10.2 million in the quarter,
with a gross margin of 70%, compared to 65% in the prior year. Year-to-date
non-GAAP gross profit was $19.5 million, with a gross margin of 70% compared to
again 65% in the prior year. Gross margins have been increasing on our license
and implementation revenue. These margins have increased as a result of
improvements in our implementation processes and the standardization of our
software product. However, gross margins may vary period to period depending on
factors, including the amount of implementation services required to deploy our
products relative to the total contracted price.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Non-GAAP selling,
general and administrative expenses for the quarter of $3.6 million were up 11%
compared to the prior year quarter, and year-to-date expenses were $6.7
million, an increase of 1% compared to the prior year. The $3.6 million in the
quarter is an increase of 15% over the first quarter of 2007. We expect
non-GAAP selling, general and administrative expenses to increase during 2007
as a result of personnel increases and public company cost.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Non-GAAP R&amp;D for the
quarter of $4.2 million was 29% of revenue and 28% year-to-date as compared to
21% for the quarter and 22% year-to-date in 2006. We continue to focus on
investing in our existing solutions, and we expect non-GAAP R&amp;D to increase
on an absolute basis during 2007.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Non-GAAP operating
income was $2.4 million for the quarter and $4.9 million year-to-date. For the
second quarter this is an increase of 65%, and a year-to-date increase of 113%
over 2006. Non-GAAP operating margins were 17% for the quarter, and 18%
year-to-date, as compared to 14% for the quarter and 11% year-to-date in 2006.
The improvement in non-GAAP operating margins from the prior periods was
principally attributable to the increase in non-GAAP gross margins, which I
discussed a moment ago.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The effective tax rate
for non-GAAP results was 21% for both the quarter and year-to-date, compared to
approximately 20% in the prior year. Our effective tax rate has been lower than
the statutory rate of 34%, largely due to the application of research and
experimentation credits.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Non-GAAP net income was
$1.6 million for the quarter compared to net income of $1.6 million for the same
period in 2006. Non-GAAP net income per diluted share was $0.07 based on 21.8
million weighted average shares outstanding compared to non-GAAP net income per
diluted share of $0.07 for the same period in 2006 based on 20.7 million
weighted average shares outstanding.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Non-GAAP net income was
$4 million for the six months compared to net income of $2.6 million for the
same period in 2006. Non-GAAP net income per diluted share was $0.18 compared
to non-GAAP net income of $0.11 per share for the same period in 2006.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Non-GAAP net income for
the quarter and year-to-date included interest expense of $441,000 and
$458,000, respectively, related to debt incurred in connection with the
redemption of preferred stock and payment of dividends before the Company went
public. In addition, interest income for the second quarter was significantly
reduced for the same reason. The interest expense and reduction in interest
income had a significant impact on the comparability of net income between the
periods. The debt was retired in the third quarter with the proceeds from the
IPO.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I have concentrated
reporting in the prior paragraphs on non-GAAP operating results because we
believe that excluding certain non-cash items, such as stock-based compensation
and other onetime items provides you the best </font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">indicator of the health
of the overall business. Also, this is how we measure the success of the
business internally. That said, we appreciate that investors also need to
analyze our results on a GAAP basis, so we have provided a reconciliation of
the GAAP results and the non-GAAP results as part of the earnings release.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Looking at our results
on a GAAP basis total expenses, including cost of revenues, were at $12.4
million for the current quarter and $23.5 million year-to-date, which included
stock-based compensation of $0.4 million for the quarter and $500,000
year-to-date. There was no stock-based compensation expense in 2006.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">GAAP net income was $1.3
million in the second quarter compared with $1.6 million in the second quarter
of 2006, and $3.6 million year-to-date in 2007 compared to $2.6 million
year-to-date in 2006. Our second quarter GAAP diluted earnings per share was
$0.06 compared to $0.07 in 2006, while our year-to-date GAAP diluted earnings
per share was 16% compared to &#151; $0.16 compared to $0.11 year-to-date in 2006.
As previously mentioned, net income for the 2007 periods were impacted by
interest expense and the change in interest income as compared with the prior
periods.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Our balance sheet in the
first quarter will change significantly with the receipt of $52.4 million in
proceeds from the IPO, which were received on July 3, 2007. On a pro forma
basis the June 30, 2007 balance sheet, after giving effect to the proceeds from
the offering and the retirement of the $20 million credit facility, would
increase cash from $4.1 million to $36.9 million. And long-term debt of $19.9
million goes to 0. Total stockholder&#146;s equity increases from a negative $26
million to a positive $26.6 million.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Accounts receivable at
the end of the second quarter were $16 million, an increase of $3.9 million
from the prior quarter. Trade accounts receivable, DSOs, were approximately 81
days, which is higher when compared with recent prior quarters. The increase
was attributable to the timing of invoicing of milestone billings under our
contracts, which may vary from quarter to quarter. However, we did collect
approximately 60% of our trade accounts receivable balances in July, reducing
DSOs.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Deferred revenue was
$27.2 million, compared to $26.2 million at the end of the first quarter. As
with receivables, there is variability in deferred revenue, as it is impacted
by the timing of invoicing for milestone billings under our contracts.
Maintenance revenue for the most part is billed monthly, and as such generally
has little effect on deferred revenue, even though it contributes meaningfully
to overall visibility.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Let me now turn to cash
flow. The significant elements to our cash flow for the first six months were
coming from financing activities. As disclosed in our IPO prospectus, cash flow
was negatively impacted in the first quarter by financing activities, including
the payment of a dividend to common shareholders of $41.3 million, redemption
of preferred stock of $17.4 million. This was partially offset by proceeds from
long-term debt of $20 million.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Total cash flow use from
financing activities was $38.8 million for the six months. Cash flow from
operating activities for the first six months of 2007 was $1.1 million compared
to $2.8 million in 2006. As with receivables, there is variability in cash
flow, as it is impacted by the timing of invoicing for milestone billings under
our contracts, which can result in quarter to quarter variability.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Let me now turn to our
guidance for the third quarter and full year. In the third quarter of 2007 we
expect total revenue in the range of $15.9 million to $16.3 million, or a
growth rate at the midpoint of 29% compared to the prior year&#146;s quarter. We are
projecting non-GAAP operating income of $2 million to $2.3 million. We are
projecting non-GAAP net income of $1.9 million to $2.1 million, and non-GAAP
diluted earnings per share of $0.07 to $0.08.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Non-GAAP operating
income and net income for the third quarter excludes estimated stock-based
compensation expense of $500,000. In addition, non-GAAP net income excludes the
expensing of deferred financing costs of $400,000 in connection with repayment
of the $20 million credit facility from the proceeds from the IPO.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Diluted shares for the
third quarter are estimated at 26.8 million. The significant increase in
diluted shares compared to June 30 is principally from the 5.1 million shares
issued by the Company in the IPO.</font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="#003399" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">During the third quarter
we will commerce incurring public company costs, including higher audit and
legal fees, Director&#146;s compensation, Directors and officers insurance,
personnel cost, and likely SOX compliance costs. These costs have been factored
into the operating income guidance I have just provided.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">For the full year 2007
we expect total revenue in the range of $60.3 million to $61.5 million, or a
growth rate at the midpoint of 32% compared to the prior year. We are
projecting non-GAAP operating income of $8.9 million to $9.9 million. We are
projecting non-GAAP net income of $7.7 million to $8.5 million, and non-GAAP
diluted earnings per share of $0.32 to $0.35. Non-GAAP operating income and net
income for the year excludes estimated stock-based compensation expense of $1.4
million.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In addition, non-GAAP
net income excludes the expensing of the deferred financing costs in the third
quarter of approximately $400,000. Again, that was taken in connection with the
repayment of the $20 million credit facility from the proceeds from the IPO.
Diluted shares for the year are estimated at 24.1 million.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Regarding bookings, our
year-to-date bookings and activity in our sales pipeline gives us confidence in
our overall outlook. For the full year we expect new sales contracted or
bookings in the range of $38 million to $42 million.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">In summary, our first
six months of the year was a strong start to achieving our full year targets.
We are excited by our expanding market opportunity, response from both our
existing and new customers to our product offerings, and remain optimistic
about our outlook. Also, we&#146;re very pleased with the investor response to our
initial IPO. We look forward to maintaining an open dialog with our investors.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">With that, let me turn
it over to the operator for our Q&amp;A session.</font></b></p>

<p style="margin:0in 0in 12.0pt .5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>


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<p style="color:#6B9915;font-weight:bold;letter-spacing:2.0pt;margin:0in 0in 12.0pt;text-transform:uppercase;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;text-transform:none;">QUESTION
AND ANSWER</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">(OPERATOR INSTRUCTIONS).
Adam Holt, JPMorgan.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adam Holt <i>&#160;</i>&#151;<i> JPMorgan - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">My first questions are
about some of the new deal activity in the quarter. It sounds like you are on
track for your bookings target for the year. Understanding that you are
probably not going to want to give us detail on quarterly bookings, where you
in line with your bookings targets for this second quarter? And can you talk
about how many new customers designed in the quarter?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">This is Charlie. I would
say, yes, we&#146;re satisfied with the bookings for the second quarter. We&#146;re very
pleased actually. As far as the number of bookings by customer, we&#146;re not going
to be disclosing that. Rather we are going to beginning our guidance on total
bookings for the year. And this goes to, as we have discussed during the
analyst teach-in as well as on the road show, there can be variability in the
Company&#146;s bookings from one quarter to the next. That variability comes from
generally the size of the contract price. Which as many of you know, average
contract price is approximately $1.8 million, but whether a contract closes in
one part or the next can have significant variability. So our focus will be on
full year guidance. Again, we&#146;re very comfortable with the $38 million to $42
million guidance we provided. And again, we are pleased with our bookings in
the second quarter.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adam Holt <i>&#160;</i>&#151;<i> JPMorgan - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">My next question, if I
could turn to actually your hiring plans. Your margins came in a little bit
better than we had been expecting. I was hoping you could give us an update on
your sales hiring in terms of where you are, and if you&#146;re still maintaining
your yearly targets?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">This is Bert. Just for
the people who haven&#146;t had an opportunity to meet with us, our sales model is
somewhat different than the typical IT software product sale. We really sell to
the CEO and the CFO. It is a value-based sale, based on the ROI that they will
be able to achieve through pricing excellence. And typically on average we
contract for 2.2 products at an initial contract sale. So what we do is we
really market and sell on the new business side of our revenue to CEOs and CFOs
with a very strong and sales and marketing team.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The add-on business that
comes from our existing customers is the responsibility of our professional
services people. They have the professional services configuration
responsibility for the initial installation of our product. They build the
relationship with the executives. And consequently they are in the best
position to sell into the existing customer base add-on products, which in 2006
one-third of our license and implementation revenue came from add-on products into
our existing base.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We, on the new business,
new name business side we exited 2006 with 26 people in our direct sales
solutions, marketing and business development area. As of the end of June that
was 35. And we&#146;ve got a target for the end of the year of 40. And we&#146;re on
target to achieve that. We also mentioned on the road show that we will be
investing in sales and marketing in the future, and that is one of our targeted
investment areas.</font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="#003399" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adam Holt <i>&#160;</i>&#151;<i> JPMorgan - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">If I could just ask one
last question on the mechanics of the quarter. You mentioned your average deal
does have 2.2 new products. Were there any &#151; was that what you saw in the
quarter? Was there any skewed towards one product or another product category?
And any particularly large transactions in the quarter? Thanks very much.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The second quarter of
2007 was consistent with what we have experienced in the past. And we haven&#146;t
seen any indication of any changes. I mentioned in my comments that we continue
to see strong demand for pricing and revenue optimization software product.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Thomas Ernst, Deutsche
Bank.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas Ernst <i>&#160;</i>&#151;<i> Deutsche Bank - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I wanted to ask you if
you have any anecdotes or any feel for the impact of being a public company,
what does that has had on your customers or partners? Any indication, either
positive or negative, that for example they feel better about doing business
because they are not concerned about doing business with you, and maybe they
are with the competition? Or maybe vice versa, is there any concern here that
they&#146;re putting pressure on you for pricing seeing your margins are as healthy
as they are?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">That is an absolutely
great question. As we have mentioned in the past, PROS has been profitable and
had positive cash flow for many, many years. And as a result, there was no real
sense of urgency about having to raise capital through the IPO process. We
really focused on what we consider to be a strategic advantage as a public
company, and that is setting a standard in the industry for vendors that supply
pricing and revenue optimization products.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Our strategy was to have
visibility, take advantage of being a public company with the awareness, also
the transparency into our financials and our performance. Our customers and
CEOs and CFOs, when they embark on pricing excellence they want to know that
they&#146;ve got a strong partner that is going to have the financial resources to
continue to invest in R&amp;D and science, and constantly enhance the products
and support them over a long period of time.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Now another factor that
was important to us was to be listed on the New York Stock Exchange. The New
York Stock Exchange requirements are rigorous and thorough. And we happen to be
uniquely qualified to be listed on the New York Stock Exchange. And the other
factor is that our target market, the companies that are in our market, the
manufacturing distribution services, hotel, cruise and airline, those large
companies, they are listed on the New York Stock Exchange. So we have already
seen some of the marketing, some of the awareness, some of the visibility
benefits of being a publicly held company.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">And previously when we
were private and our primary competitors were private, the customers and
prospects were always wondering whether they really were getting accurate
information about the strength of the Company in terms of financial resources.
And now with PROS we clearly have overcome that sales objection, because all of
our financial information is public. Of course, we&#146;re very proud of that.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Now to come to your
final point, are those same wonderful customers that have been fabulous
partners coming back and squeezing us, and the answer is no. At the end of the
day the value of our product and the return on investment that our customers
achieve is clearly recognized by CEOs and CFOs. And we haven&#146;t seen a single
indication that </font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">people feel because of
our financial success, because of our ability to become a public company and
meet the requirements of the New York Stock Exchange, that there is any
indication, other than our customers are incredibly proud and pleased that they
chose PROS, and we have received just jillions of congratulations from our
customer base.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas Ernst <i>&#160;</i>&#151;<i> Deutsche Bank - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Great. You gave &#151; you
put up some strong results in terms of margin delivery in the quarter, and your
outlook is a bit of a positive surprise as well. I&#146;m curious, do you feel like
you have a conservative enough look here in terms of the public company
expenses, and that you have got your arms around them as you face the second
half and the margin expansion we&#146;re looking forward to in your guidance?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">This is Charlie. At as
far as public company costs, I would say we think we have a handle on them. We&#146;re
very, very pleased that the SEC has recently made some changes relative to the
regulations and is moving towards a risk-based as opposed to just a
quantitative-based assessment of the Company&#146;s internal controls. We&#146;re really
in the process of digesting that. Yet we still have the expenses in the third
and fourth quarter, but we&#146;re going to digest that. We&#146;re hoping actually that
we will be able to come away with a little less expense than we currently have
in our plan. Again, it is all predicated upon the new guidance that is coming
up from the SEC. Short answer, we&#146;ve got the dollars in the plan. We believe
the dollars are adequate.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Thomas Ernst <i>&#160;</i>&#151;<i> Deutsche Bank - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">One final question maybe
to try to pinpoint here in the outlook. You have highlighted your optimism in
the long-term growth, and clearly the results are strong. Your guidance here in
the near-term is strong. Wall Street is a bit worried as you look at the stock
market, and clearly there is some sort of measure of credit crunch happening.
Is there anything that has changed do you see here in the last few weeks since
you have been public in terms of your feel about the pipeline and the customers&#146;
propensity to buy here over the mid-term?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Absolutely no indication
whatsoever. If anything, you&#146;ve got awareness at the CEO, CFO level that they
need to do something about pricing. Sometimes the kind of news that would be
disconcerting to a CEO and CFO in fact increases demand for the value
proposition of our pricing products. So we have seen examples. I think you saw
the press release on Dollar Thrifty, and it was all about the pressures that
they are feeling in their industry. And even at a time where they are
struggling and we have seen pressure on them, they came back and signed a deal
with us. And we&#146;re very pleased to bring them as a new customer into the PROS
family.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Robert Schwartz,
Jefferies &amp; Co.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert Schwartz <i>&#160;</i>&#151;<i> Jefferies &amp; Co. - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Congratulation. I was
wondering if you &#151; since you can&#146;t really talk about the size of the backlog,
if you could tell us the number of transactions that closed in the quarter?</font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="#003399" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">This is Charlie again.
Similar to just talking about total backlog dollars, we&#146;re not planning on
talking about the number of transactions closed in any one quarter. And the
reason for that is you can get again variability between one quarter and the
next, one large deal in the quarter versus two or three smaller deals in the
quarter. We really don&#146;t want to get into the numbers game. We want to stay
focused on the qualitative discussion around the $38 million to $42 million.
And we will be giving updated guidance on that $38 million to $42 million when
they close Q3.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert Schwartz <i>&#160;</i>&#151;<i> Jefferies &amp; Co. - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Let&#146;s be clear on what
is in the $38 million to $42 million backlog, what parts are you including? Are
you including maintenance as well as the license implementation?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">That is a very good
question. It is not a backlog number. Those are bookings. Those are new sales.
So those are new sales contracts, $38 million to $42 million. And it only
includes license and implementation. If does not include maintenance. Which is
a great question, because actually when we sign a contract typically we get
one, more frequently, two years commitments on the maintenance. But the
maintenance component historically we have never put into our bookings number.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert Schwartz <i>&#160;</i>&#151;<i> Jefferies &amp; Co. - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">You mentioned and
overall number for your field organization, the sales group ending June at 35.
Could you break that out into quota carrying new sales heads? And how many of
your support people are in the farming business of bringing follow-on sales
from existing customers?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Yes, quota carrying
sales territory direct salespeople typically is between the one-half to
two-thirds, depending on what is going on in our hiring. And then the other
group is made up of our marketing staff and our sales solutions consultants.
But that entire group is focused on new name business.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert Schwartz <i>&#160;</i>&#151;<i> Jefferies &amp; Co. - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Think about one-half of
the 35 to two-thirds of the 35 being quota carrying?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Yes, that&#146;s close.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Robert Schwartz <i>&#160;</i>&#151;<i> Jefferies &amp; Co. - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Part of your success on
your margins is taking down the expense and cost of implementations in some of
the newer, non-airline verticals. I&#146;m wondering what evidence you saw of that
this quarter, and are you seeing progress on that front? What can you tell us
about that?</font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="#003399" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">This is Charlie. I think
we have been very good. If you look back over the last year, year and a half,
two years, even three years, we have seen some nice incremental improvements in
our margins. And that is continuing as we go through the first half of the
year. I don&#146;t want to speculate on the last half of the year, but we don&#146;t see
the margins decreasing during the last half of the year. I think as we go
forward, I would like to think the margins are going to continue to increase a
bit. But we want to stay within our overall guidance that we provided. And the
guidance we are continuing with margins that are fairly consistent with what we
have enjoyed for the first six months of this year.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Robert Schwartz If I
may, maybe the last question. Can you give us any color on how things are
splitting between new customers and existing customers in that, say that
bookings number you were talking about? With the variability we have, given the
size of the deals, I don&#146;t want to talk specifically about that metric at this
time. I would say that at the end of the year I think we would be prepared to
talk about that metric.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I will say that
everything that we have in our plan is tracking towards. And basically for the
first six months it has very much been with the historical has been. One-third
comes from existing, two-thirds comes from new.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Robert Schwartz And you
didn&#146;t see any change of that in this quarter? No.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">(OPERATOR INSTRUCTIONS).
Tom Roderick, Thomas Weisel Partners.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tom Roderick <i>&#160;</i>&#151;<i> Thomas Weisel Partners - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I wanted to just ask you
qualitatively about deals that you closed on the quarter, and even deals that
perhaps you didn&#146;t close or may have lost in the quarter. Can you just talk
about the competitive dynamics on these deals? What were the functional
elements of the PROS solution that pushed you over the top in the deals where
you did receive decisions this quarter? And why is PROS winning versus the
competition? Then as part of that, if you could just address what you are seeing
from some of the bigger software guerrillas in this space, whether it is SAP or
maybe taking a look at Oracle, what are you seeing from the competitive
dynamics of those players in the marketplace?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">That is a great
question. We didn&#146;t see anything in the quarter that was any different than
what we have seen over the last 18 to 24 months. As we have indicated in the
past, this is a competitive market. And depending on the prospect and
specifically what they&#146;re looking for, we either clearly win the deal out
right, or we have a tougher competitive situation.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">For instance, if you&#146;ve
got a CEO or CFO that wants pricing excellence and they want the full
complement of Pricing Analytics, Pricing Execution and Pricing Optimization
based on a scientific willingness to pay, then we win. If it is a lower-level
executive and they are really looking for Pricing Analytics, and kind of to get
started, and they&#146;re not committed to a longer-term partnership headed to the complete
pricing excellence, then it can be very competitive.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The overall business &#151; the
demand is &#151; and the activity level is clearly higher in 2007 than it was in
2006. And we really started it &#151; the momentum &#151; we saw the momentum picking up
in 2005. So if you look at our financials, and you tracked us over this period
of time, what you&#146;ll see is that our financials really represent that
increasing demand in the marketplace. And our activity levels, for instance at
our conference we had over 500 people, which was up in excess of 50% from the
year before, standing room only. Every indicator in the market today is that
there is a strong and growing demand for our products.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So the overall demand is
strong. We&#146;re benefiting from that. You asked about the big players in the
market. What we have said in the past is that Oracle, SAP and Microsoft, we
never compete directly against them. Each one of them has different levels of
activity associated with this space. And SAP has a relationship with Vendavo.
SAP bought </font></b></p>


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<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Khimetrics. Oracle
bought ProfitLogic. And those were focused on the retail space. But we continue
to focus on the market, the value, and our own organic growth. Overall, I would
say that we are experiencing exactly the same market demand and competitive
environment that we have had for the last two years. No significant change of
any kind.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tom Roderick <i>&#160;</i>&#151;<i> Thomas Weisel Partners - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">So with respect to the
verticals that you guys focus on, is it really the same list of competitors,
the Vendavo and Zilliant in the verticals that you sell in, or has there been
any encouragement from other players that might focus on the retail market?
Still the usual suspects that are showing up at the deals in the verticals that
you have the deep domain expertise on?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Great question. The
verticals are competitive specific. So manufacturing and distribution and
services, where we see the big opportunity going forward, our competitors are
Zilliant, and Vendavo. And we saw no change in that whatsoever in the second
quarter. There is a different competitive set in the hotel, cruise space and a
different competitive space in airline.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">The other question about
do we ever anticipate those providers of pricing software products to the
retail space to come into our space? Probably not anytime soon. What they do is
significantly different than what we do. And we are in the pricing and
optimization transaction business, and they are in the analytical, more of the
analytical, less frequent analysis business. So we know the players in the
retail space very well. And we track them just like we track our direct
competitors. And we don&#146;t see how they would ever bring the innovative science
or the real-time transaction processing capabilities that would compete against
us in &#151; we don&#146;t just see how they could possibly do it.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tom Roderick <i>&#160;</i>&#151;<i> Thomas Weisel Partners - Analyst</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Charlie, just a brief
financial question for you. I wanted to build on the questions from both Tom
and Rob earlier on the margin structure. Let me just ask directly on the gross
margin side, this is the highest gross margin we have seen I think on record
from your Company. Can you just update us as to what the longer-term target
goals are for gross margins? And then in the near-term what, if anything, can
force that gross margin line to fluctuate on a quarter to quarter basis?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charlie Murphy <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - EVP, CFO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I think what we wanted
is we want to stay away from guidance beyond 2007. And I think during the road
show I believe we did have an opportunity to talk about the target models, but
beyond 2009. I think for this conversation, I think we want to stay focused on
this year.</font></b></p>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We see the margins that
we have achieved in the first half of this year not going down the balance of
year. Possibly they can improve modestly between now and the end of the year.
When we see the leverage in the model, I think as we have discussed before,
there is an increase in margins, and also the opportunity for R&amp;D costs as
a percentage of total revenue to decrease over time. That is the opportunities
as far as margin growth beyond 2007. I don&#146;t want to get into specifically
where we see those targets going forward at this time.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">I think from a
qualitative standpoint, we feel that the professional services implementation
component will become more efficient over the long-term. And we also
communicated when we were on the road show that we significantly </font></b></p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<br clear="all" style="page-break-before:always;">



<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">increased our R&amp;D
expenditures in 2006, and have continued that in 2007, because when we saw that
this category was really taking off with sustainable demand and growth then we
decided to go ahead and spend on R&amp;D and accelerate some of our product
plans.</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Sir, I have no further
questions for you at this time.</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Is the call still open?</font></b></p>

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<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Yes, sir. I would like
to turn it back to you if you have any closing remarks.</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bert Winemiller <i>&#160;</i>&#151;<i> PROS Holdings, Inc. - Chairman, CEO</i></font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">We just want to thank
everybody that is on the call. We can see the list of participants, and we see
a lot of investors that invested in PROS, and continue to hold the stock today.
And we want to thank you for your confidence in PROS. And we&#146;re going to do
everything we possibly can to earn that confidence and continue to build PROS
into the strong leadership position in this category that we possibly can.</font></b></p>

<div style="border:none;border-top:solid #003399 1.0pt;padding:3.0pt 0in 0in 0in;">

<p style="border:none;font-weight:bold;line-height:normal;margin:4.0pt 0in 12.0pt;padding:0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operator</font></b></p>

</div>

<p align="left" style="color:#003399;font-weight:bold;margin:0in 0in 12.0pt;text-align:left;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-variant:normal !important;font-weight:normal;">Thank you again, ladies
and gentlemen. This brings your conference call to a close. Please feel free to
disconnect your lines now at any time.</font></b></p>

<p style="margin:0in 0in 12.0pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>
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