MOUNTAIN VIEW, Calif., Sept. 14, 2005 -- ILOG(R) (Nasdaq: ILOG; Euronext: ILO, ISIN: FR0004042364) today announced it is the first Business Rule Management Systems (BRMS) software vendor to offer integration with the new IBM WebSphere(R) Process Server version 6.0. The integration will enable business and technology managers in Global 2000 corporations to better manage their policy-intensive business processes.

A new connector developed by ILOG provides seamless integration between ILOG JRules(TM), a key offering in ILOG's BRMS product line, and the recently announced IBM WebSphere Process Server 6.0. Embedded with IBM WebSphere Enterprise Service Bus (ESB) and based on open standards, IBM WebSphere Process Server is designed to reduce the time, cost, and risk of integration projects, simplify moving information between applications, and enable IT to be more responsive and flexible to changing business demands.

The combination of the IBM and ILOG products will empower business users to make policy changes themselves when creating and using comprehensive business process automation platforms. ILOG worked closely with IBM for the technical integration based on a service-oriented architecture, which will enable business users to fully leverage the new set of process management features in the IBM WebSphere Process Server. Under the terms of the agreement, ILOG will also participate in co-marketing activities with IBM.

ILOG JRules complements IBM WebSphere Process Server 6.0 by automating complex business policies and supporting enterprise-wide and centralized business rule management. Business processes targeted by the solution include pricing, welfare administration, insurance claims processing, loan and insurance underwriting, promotions and loyalty management, among others. These processes are driven by rapidly-changing business rules that drive decision-making for eligibility, risk assessment, pricing, validation and scoring. As Gartner Vice President Jim Sinur recommended in a February 2005 report, Business Process Management Suites Will Be the Next Big Thing, "Organizations experiencing increased rule-coordination activities should consider BRMSs."

Business Rule Management Systems are essential to BPM applications because they ensure the highest levels of agility and customization for these applications. Using a BRMS, business policies can be managed separately from the rest of the application, eliminating the need to make policy changes to a BPM application through traditional software coding. The resulting solution provides for the continuous adjustment of processes in response to changing business conditions, and allows business users to maintain the application, lowering IT maintenance costs.

ILOG has consistently built on its history of product innovation to make ILOG JRules the industry's leading business rule software. For the third year in a row, ILOG has been named to the leader quadrant of Gartner's Magic Quadrant for Business Rule Engines, and ILOG has twice been named the BRMS market leader by IT research firm IDC. Customers of the award-winning ILOG JRules include CitiStreet, VSP, eBay, Zurich, MetLife, Sabre and many other leading Global 2000 companies and governments worldwide.

Currently, more than 50 Global 2000 organizations use ILOG's BRMS products in combination with a BPM solution. The company also offers more comprehensive technical integrations with BPM vendors, including industry leaders like IBM.

Today's announcement extends ILOG's relationship with IBM, which also includes ILOG JRules integration and related co-selling agreement for IBM WebSphere MQ Workflow(TM) products, and participation in IBM's business performance management initiative. In addition, ILOG has been a member of IBM's PartnerWorld program for four years.

The ILOG JRules connector for WebSphere Process Server is available immediately from ILOG at and through the IBM Developer's Network.

About ILOG

ILOG delivers software and services that empower customers to make better decisions faster and manage change and complexity. Over 2,500 global corporations and more than 465 leading software vendors rely on ILOG's market-leading business rule management system (BRMS), optimization and visualization software components, to achieve dramatic returns on investment, create market-defining products and services, and sharpen their competitive edge. ILOG was founded in 1987 and employs more than 650 people worldwide. For more information, please visit http://www.ilog.com .

NOTE: ILOG is a registered trademark, and ILOG JRules is a trademark, of ILOG.

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