New ILOG JRules Includes Advanced Features to Enhance Business Process Management

SAN FRANCISCO – June 10, 2003 – ILOG® (NASDAQ: ILOG; Euronext SICOVAM: 006673), a leading provider of enterprise-class software components, today introduced ILOG JRules™4.5. With tools designed to enable an organization’s management of its business policies and processes across the enterprise, ILOG JRules 4.5 significantly advances ILOG’s market-leading product, JRules 4.0. The new ILOG JRules includes support for Web services and business process management (BPM), positioning business rule management as an essential complement to BPM since it facilitates fine-grain control of business processes. The first business rule product to incorporate both workflow modeling graphics and optimization technology-based consistency checking to enhance enterprise-wide business rule management, JRules 4.5 makes the entire IT architecture more agile in response to dynamic, unpredictable business environments.

JRules 4.5 is also expected to cement the adoption of business rule management as a best practice since it helps business managers lower costs, make better decisions, and manage risk more effectively.“

ILOG JRules provides the advanced business rule management features that allow CitiStreet to effectively address our dynamic business requirements,” said Andy Marsh, chief information officer, CitiStreet Total Benefits Outsourcing Division. “Implementing JRules has allowed us to more cost-effectively respond to our customers’ needs by allowing us to manage critical information in real-time.”

Industry analyst John Rymer asserted in the Giga Information Group, Inc. report, ILOG JRules 4.5: Rules Made Practical for a Wider Range of Development Shops, March, 2003 that with the new product, ILOG puts business users closer to meeting the fast-changing requirements that drive policy-based actions by enabling them with the ability to configure high-level business rules.

Advanced Support for BPM
Research firm Gartner recently addressed the combination of business rules and BPM (source: Agile Process Integration Is Emerging in BPM, Jim Sinur, Dec 2002): “Business process management (BPM) provides significant benefits alone; however, when combined with business rules engines (BREs), it provides a great opportunity to gain and maintain favorable return on investment (ROI) and value of investment under a number of business scenarios.”

ILOG JRules 4.5 addresses the momentum behind rule-based BPM with a new Ruleflow feature that leverages ILOG’s workflow modeling visualization technology to enable the orchestration of business rule execution. Most BPM solutions on the market fail to support business rule management, which can both reduce the impact these systems have on organizational changes and limit business agility.The new features in ILOG JRules 4.5 further evolve ILOG’s support for BPM.

Other important new features in this release that enhance business rule management across the enterprise architecture include:

• Advanced consistency checking that leverages ILOG’s powerful optimization technology.
• Point-and-click rule deployment that accelerates business rule implementation.
• Full support for Web services, including deployment of business rule applications as Web services and invocation of Web services from business rules.

ILOG JRules 4.5 enables a faster response to dynamic business conditions and enhanced interaction with suppliers, partners and customers, since it directly involves business analysts, policy managers, customer service representatives and other non-IT staff in the management of business rules, allowing these business users to contribute directly to the agility of the enterprise. The ability for business rule technology to push rule changes “outboard” to business users in an organization can greatly reduce IT maintenance costs and contribute to up to 10 percent return on investment, according to research firm Gartner (source: Adding Intelligence to the Enterprise Architecture, Jim Sinur, July 2002) .

ILOG has consistently built on its history of product innovation to make ILOG JRules the leading business rule engine. For the second year in a row, ILOG has been named to the leader quadrant of Gartner’s Magic Quadrant for Business Rule Engines based on its ability to execute and its vision (source: The Business Rule Engine 2003 Magic Quadrant, Jim Sinur, April 2003). ILOG is differentiated by its unique vision for enterprise-wide business rule management that includes business management tools, modeling capability, a centralized rule repository and multiple decision engines. ILOG’s high-performance products are complemented by world-class consulting and customer support services. Customers of the award-winning ILOG JRules include CitiStreet, Fannie Mae, MetLife, Sabre and many other leading Global 2000 companies and governments worldwide.

About ILOG
For more than 10 years, ILOG's innovative enterprise-class software components and services have helped companies maximize their business agility and improve operating efficiency. Over 1000 global corporations and more than 300 leading software vendors rely on ILOG's business rules, optimization and visualization technologies to achieve dramatic returns on investment, create market-defining products and services, and sharpen their competitive edge. For more details, please visit www.ilog.com.

ILOG is a registered trademark, and ILOG JRules is a trademark, of ILOG. All other company and product names are trademarks, registered trademarks or service marks of their respective owners. Forward Looking Information This release contains "forward-looking" information within the meaning of the United States Securities laws that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, without limitation, the success of ILOG JRules 4.5 in the marketplace and those risks and uncertainties mentioned under "Risk Factors" in the company's form 20-F for the year ended June 30, 2002, which is on file with the United States Securities and Exchange Commission."