Millions in Savings Expected; Claims Processing Time Reduced

MOUNTAIN VIEW, Calif. – April 27, 2004 – ILOG® (NASDAQ : ILOG ; Euronext: ILO, ISIN: FR0004042364), a leading provider of enterprise-class software components and services, today announced that the State of Minnesota will use ILOG JRules™, a key offering in ILOG’s Business Rule Management System (BRMS) product line, as part of a technology initiative that is expected to improve flexibility and decrease the turnaround time for the payment of unemployment insurance benefits. The initiative is expected to yield significant savings in administrative expenses and reduce the amount of time it takes to process an unemployment insurance claim.

The new rule-based system is being built by BearingPoint™, Inc., one of the world's largest business consulting and systems integration firms, and is part of a $16 million business process redesign and technology modernization initiative for the Minnesota Department of Employment and Economic Development (DEED). BearingPoint will be implementing their national unemployment insurance solution, the Unemployment Framework for Automated Claims and Tax Services (uFACTS) for DEED. ILOG JRules is an integrated component of the uFACTS solution.

“Our goal is to make the new system more responsive to the many changes in policy and law pertaining to Minnesota's unemployment insurance program," said Scott Malm, a senior manager with BearingPoint's state and local government practice. ”We believe ILOG JRules will help achieve this objective.”

BearingPoint’s uFACTS solution is built around four basic software application services that correspond to the key business activities of an unemployment insurance program, including benefits, tax, integration and administrative services. In the first phase of the DEED project, ILOG JRules will manage the complex rules that determine liability for unemployment insurance taxation, which requires the application of a series of eligibility rules that can change from year to year. In future phases of the project, ILOG JRules’ role will expand to include management of the overall rules governing unemployment insurance claims processing.

A key benefit of ILOG JRules is that it enables non-technical staff to quickly and efficiently update business rules, for instance in response to changes in eligibility requirements, compensation guidelines or as new tax regulations are mandated. ILOG JRules offers advanced business rule management features that give business users the ability to update and manage business rules across the organization, rather than having to rely on the IT staff to update the rules. This enhanced agility is expected to help DEED respond to changes more quickly, and is critical for the unemployment benefits insurance environment, which can involve many frequently-changing business rules.

ILOG has consistently built on its history of product innovation to make ILOG JRules the industry’s leading business rule software. For the second year in a row, ILOG has been named to the leader quadrant of Gartner’s Magic Quadrant for Business Rule Engines. Customers of the award-winning ILOG JRules include CitiStreet, MetLife, eBay, Sabre and many other leading Global 2000 companies and governments worldwide. For more information, please visit www.ilog.com/products/.

About BearingPoint, Inc.
BearingPoint, Inc. (NYSE: BE) is one of the world's largest business consulting, systems integration and managed services firms serving Global 2000 companies, medium-sized businesses, government agencies and other organizations. We provide business and technology strategy, systems design, architecture, applications implementation, network infrastructure, systems integration and managed services. Our service offerings are designed to help our clients generate revenue, reduce costs and access the information necessary to operate their business on a timely basis. Based in McLean, Va., BearingPoint has been named by Fortune as one of America's Most Admired Companies in the computer and data services sector. For more information, visit the company's Web site at www.BearingPoint.com.

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, 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. BearingPoint is a trademark of BearingPoint Inc.