PARIS, France, June 14, 2005 –- ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364), a leading provider of enterprise software components and services, today announced that SMABTP, the leading French insurance company in the construction industry, has standardized on ILOG JRules™, a key offering in ILOG’s Business Rule Management System (BRMS) product line, to effectively manage all the business rules governing its insurance applications. Using ILOG’s BRMS, SMABTP expects to reduce IT maintenance costs, shorten the time-to-market of new products, and better support its business partners. SMABTP has already successfully deployed ILOG JRules in several applications, including customer repository management and policy underwriting.

Due to increasing external regulatory and tax changes, as well as new construction methods and materials that appear annually, managing business policy changes in the construction insurance business is an extremely complex process. SMABTP’s aging legacy IT systems could no longer cope with the requirements of this ever-changing business environment while providing the necessary level of agility, transparency and productivity. Using an architecture in which business rules were buried in the legacy systems, staying competitive required a lengthy IT change cycle.

Using ILOG JRules, SMABTP will be able to respond faster and more cost-effectively to policy changes, as well as improve the time-to-market for new products and services. This is possible because a BRMS allows the business rules to be managed separately from the rest of the application, allowing policy managers to make changes to the application without heavy IT involvement, and introduce new products and policies more quickly and cost-effectively.

“Introducing new underwriting rules was a complex process which required three to four months to be implemented versus two weeks now,” said Jean-Michel Detavernier, SMABTP’s Director of IT Projects and Developments. “We dramatically enhanced the responsiveness and the flexibility of our underwriting application, which means better servicing our customers and partners. We are also able to support compliance requirements in the underwriting process by enabling underwriters to audit and control the rules. As a matter of fact, one of the key drivers for adopting JRules was improving collaboration between IT and business users and productivity gains – we feel we’ve met these objectives.”

As a mutual insurance provider, SMABTP has built strong business partnerships with other mutual insurers to leverage core strengths. Consequently, SMABTP’s IT systems must be able to flexibly handle both its own business rules as well as those of its partners, yet allow any of these rules to be easily updated so they can effectively serve their mutual customers.

SMABTP has adopted a Service Oriented Architecture (SOA) for its IT systems and is using ILOG JRules as a core part of this architecture to externalize and manage all of the business rules of its insurance products and create rule services for these processes. “Externalizing the business logic to a BRMS has become a standard practice in our company. We are porting existing applications to ILOG JRules so that all new applications can leverage our new SOA,” added Detavernier.

SMABTP and ILOG’s Professional Services organization worked together to develop the new SOA and rule-based architecture. Applications are now being deployed in a modular fashion and aimed at handling any insurance policy or claim using business rules technology. SMABTP estimates that 80% of its IT architecture can be written using business rules.

ILOG JRules is currently used for SMABTP’s customer repository management and underwriting applications, where business rules already drive data validation, eligibility and risk assessment decisions.

ILOG has consistently built on its history of product innovation to make ILOG JRules the industry’s leading business rule software. ILOG was recently named the BRMS market leader by IDC, and has been in the leader quadrant of Gartner’s Magic Quadrant for Business Rule Engines for three years running. Customers of the award-winning ILOG JRules include CitiStreet, VSP, eBay, Zurich, MetLife, Sabre and many other leading Global 2000 companies and governments worldwide.

About SMABTP:

SMABTP is the leading French insurance company in the construction industry. SMABTP insures construction companies, construction projects, equipments, delivered buildings, enterprise workers and enterprise managers. SMABTP offers also life and health insurance policies. SMABTP belongs to SMABTP Group, which employs more than 2 000 people and whose revenue amounted to 1,622 millions of euros in 2004. For more details, please visit: www.smabtp.fr

About ILOG:

ILOG delivers software and services that empower customers to make better decisions faster and manage change and complexity. Over 2,000 global corporations and more than 400 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.

ILOG is a registered trademark, and JRules is a trademark, of ILOG. All other trademarks are the property of their respective owners.