MOUNTAIN VIEW, Calif. and PARIS, Nov. 2, 2005 -- ILOG(R) (Nasdaq: ILOG; Euronext: ILO, ISIN: FR0004042364) today announced that Option One Mortgage Corporation, a national residential mortgage lender and subsidiary of H&R Block Inc., has deployed a key offering in ILOG's Business Rule Management System (BRMS) product line, ILOG JRules(TM), to build both its mortgage pre-qualification system as well as its automated underwriting system. Option One selected ILOG JRules to enable faster turnaround times on loan qualifications and loan approvals, increase decision making flexibility, and improve risk management for regulatory compliance.

Mortgage loan qualification involves adherence to numerous and often changing internal policies and external regulations. When these underlying business rules are hard-coded in business software, the results are diminished business agility, increased costs and lost opportunities. ILOG JRules provides a centralized business rule repository designed to support rapid change with the flexibility to delegate rule changes to either IT or to certified business users outside of IT.

Option One selected ILOG JRules as a key element of its "high-tech, high-touch" customer service strategy, in which the company uses technology as a strategic differentiator to deliver consistently excellent service to customers. Using ILOG JRules, Option One has upgraded an existing system used to pre-qualify potential borrowers, accelerating loan application processing and time to market for new loan products while reducing the amount of time account executives spend on pre-qualification. The new system helps Option One's partner mortgage brokers determine the appropriate loan product through a secure web site and quickly receive their client's pre-qualification approval. Brokers get accurate, 24-hour access to underwriting guidelines and pricing, freeing up the account executives to spend more time building customer relationships and less time managing transactions.

Based on the success of the rules-based pre-qualification system, Option One next implemented ILOG JRules as part of its next generation Automated Underwriting Decision System (AUDS). Option One is using ILOG JRules to create a full-scale underwriting system that automates the validation of data, eligibility and pricing - previously time-intensive manual processes. Option One's automated underwriting system will ensure that mortgage brokers receive rapid responses and reliable answers that they use with confidence for the benefit of their customers. Option One will also use the results internally to streamline the loan origination workflow process.

"Our pre-qualification and underwriting systems represent strategic investments for Option One. These are powerful systems that are easy to manage and can quickly respond to the dynamic conditions of the mortgage industry. The bottom line is delivering superior services to our customers, which differentiates us from competitors," said Allan Lubitz, senior vice president and CIO, Option One Mortgage Corporation.

Lubitz added, "We chose ILOG JRules for its robust scalability as well as its ability to automate complex decision processes and do so accurately, ensuring there is a consistent customer experience at all touch points. ILOG's technology is an excellent fit."

Through ILOG's Lending Practice, ILOG consultants played a key role in the Option One deployment of the new systems, with a dedicated staff working directly with the organization including design, development, and deployment.

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. ILOG's BRMS customers include eBay, Freddie Mac, Sabre, Zurich American and many other leading Global 2000 companies and governments worldwide. In addition, since BRMS is becoming an essential complement to business process management (BPM) applications, ILOG has partnered with leading BPM solution providers to provide BRMS solutions to their customers. These providers include BEA, FileNet, Fujitsu, IBM and Vitria.

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. The BRMS market share leader, ILOG was founded in 1987 and employs more than 690 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. All other trademarks are the properties of their respective owners.