ILOG provides industry-specific supply chain management solution for SAP APO with first client deployment

ILOG and MG Industries Jointly Presenting At SAP ASUG Fall Supply Chain Management Conference to Discuss First ILOG ODF Extension Deployment

ORLANDO, Fla. - October 1, 2002 - ILOG® (NASDAQ: ILOG; Euronext SICOVAM: 006673), the leading provider of enterprise-class software components, today announced that MG Industries (MGI), a supplier of industrial, medical and specialty gases, increased operational effectiveness and reduced operational costs while using ILOG's new supply chain planning extension to improve resource planning. The new product, called ILOG ODF™ (Optimization Development Framework), extends the functionality of the SAP® Advanced Planner and Optimizer (SAP APO)� solution, an application component of the mySAP™ Supply Chain Management solution, to meet the specific needs of vertical industries. The MGI-customized solution has helped the company simultaneously optimize both production and transportation planning, better meeting customer needs. MGI represents the first deployment of ILOG's supply chain planning extension for SAP APO customers. The announcement was made at the SAP ASUG (American SAP User Group) Fall Supply Chain Management Conference in Orlando, Fla., September 29 through October 2, 2002.

SAP utilizes ILOG technology within the core of SAP APO. Complementary ILOG ODF enhances the functionality of SAP APO by creating customizable supply chain planning and scheduling applications that are unique to a specific process, company or vertical industry.

Often supply chain planning solutions cannot be customized for specific industries, which is an obstacle to their use in specialized industries such as oil and gas. MGI, a major supplier of industrial and specialty gases, utilizes a fleet of specialized tank trailers to deliver their products. MGI's vendor managed inventory environment creates complex truck routing requirements that need to be addressed in this delivery process.

"Using ILOG ODF, MG Industries was able to build and deploy a complex vehicle-routing optimization extension that captures our distinct business requirements," said Matthew Brown, vice president SCM MG Industries. "The MGI-customized extension plugs into SAP APO and gives us a single planning system that addresses our unique business needs."

ILOG and MGI to Highlight Product Benefits
Demonstrating the value of ILOG ODF for SAP APO customers, ILOG and MG Industries will co-present on "Leveraging Your SAP APO Solution for Enhanced ROI" at the ASUG Conference. The joint presentation will educate attendees on how SAPAPO customers can quickly generate optimization extensions using ILOG ODF, building industry- and solution-specific extensions for various tasks.

"ILOG's ODF product adds value for SAP customers by allowing them to realize maximum return from their investment in the SAP APO suite," said Christian Deutsch, general manager of ILOG's Value Chain Management Division. "This MGI-customized application addresses specific industry issues and the need for real-time changes, and ultimately will help a company achieve ROI in a much shorter time period."

About ILOG
Dually headquartered in Paris and Mountain View, Calif., ILOG is the world's leading supplier of enterprise-class software components. Founded in 1987, ILOG offers embeddable optimization, visualization and business rule components that dramatically shorten the development time of enterprise applications in the supply chain, telecommunications, transportation, financial services and government and aerospace industries. ILOG already has a significant market share for its optimization technology and is playing an active role in fostering e-business software innovations. Visit www.ilog.com for additional information.

ILOG is a registered trademark, and ILOG ODF is a trademark, of ILOG. SAP, mySAP and all other SAP product and service names mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. All other company and product names are trademarks or registered trademarks of their respective owners.