The £1.3 Million Agreement Calls for JRules To Streamline Health Records

BRACKNELL, UK – January 28, 2004 - ILOG® (NASDAQ: ILOG; Euronext; SICOVAM: 006673) today announced that Syntegra, the consulting and systems integration arm of British Telecom (BT), has selected ILOG JRules ™, a key offering in ILOG’s Business Rule Management System (BRMS) product line, to meet record handling standards mandated by a National Health Service initiative. Part of England’s National Programme for IT, the initiative will maintain lifelong electronic health records for 50 million patients, linking 30,000 doctors and 270 health care providers in England. The three-year agreement between ILOG and Syntegra is worth £1.3 million ($2.4 million).

ILOG has been selected by Syntegra, which last month was contracted to design, deliver and manage the national patient record database and transactional messaging capability, known as the NHS Care Records Service. ILOG JRules will be used to support data validation, regulatory compliance and exception identification, ensuring better collaboration, consistency and decision support as part of the new NHS Care Records Service.

ILOG has consistently built on its history of product innovation to make ILOG JRules the industry’s leading business rule software. Compliance solutions powered by ILOG monitor high volumes of data in real time, immediately detecting and reporting faulty or inaccurate information. For business process management, ILOG’s BRMS enables the effective management of the complex, dynamic rules that can number in the thousands for a discrete business process, maximizing business agility. Customers of the award-winning ILOG JRules include CitiStreet, eBay, 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 maximise their business agility and improve operating efficiency. Over 1000 global corporations and more than 300 leading software vendors rely on ILOG's business rules, optimisation and visualisation 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 JRules is a trademark, of ILOG. All other trademarks are the property 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 management and proper utilization of ILOG JRules in the project and those risks and uncertainties mentioned under "Risk Factors" in the company's form 20-F for the year ended June 30, 2003, which is on file with the United States Securities and Exchange Commission