WASHINGTON – October 13, 2004 – ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364), a leading provider of enterprise-class software components and services, today announced that the District of Columbia (District) has selected ILOG JRules™, a key offering in ILOG’s Business Rule Management System (BRMS) product line, to support a key health and human services initiative as part of the Office of the Chief Technology Officer (OCTO) Human Services Modernization Program (HSMP).

Part of an aggressive effort to upgrade and integrate the District’s technology systems, the award-winning ILOG software will be used to automate the “Interview for Benefits” application that provides D.C. residents, hospitals, community-based organizations, and related government agencies with a web-based interview tool to determine potential eligibility for either the Federally-funded Medicaid or D.C. HealthCare Alliance.

Prior to the ILOG JRules implementation, the “Interview for Benefits” application process was performed manually. As a result of the automation, ILOG JRules is expected to generate significant cost savings for the District by channeling clients to the proper medical benefits program. The rule-based system is extremely accurate, thereby, reducing processing errors. The overall time to process a client’s application will be reduced due to the increased accuracy of the system, freeing District employees to focus on other important areas, providing additional savings.

The Human Services Modernization Program will address the District’s need to integrate and share information between the D.C. Superior Court and the District’s health and human services agencies. ILOG’s BRMS provided a solution that will allow the District to make accurate eligibility decisions and deploy policy changes and upgrades with minimal software development. It also provides a technology platform that can easily be extended and modified to include additional benefit programs offered to D.C. residents through key health and human services departments.

ILOG JRules allows District policy makers to more effectively maintain District and Federal policies and procedures. By implementing ILOG JRules, HSMP will have the capability to create and maintain a unified platform across the city’s social services systems. ILOG business rules can be shared across applications and departments, allowing changes to be deployed instantly and new District-wide policies to be identified and acted upon in a matter of minutes. This will benefit District residents by allowing new programs, as well as regulatory changes, to be implemented more quickly.

ILOG has consistently built on its history of product innovation to make ILOG JRules the industry’s leading business rules 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. ILOG’s BRMS provides a competitive advantage for many strategic business applications. Compliance solutions powered by ILOG monitor high volumes of data in real time, enabling the immediate detection and reporting of faulty or fraudulent 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, 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 1,000 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 JRules is a trademark, of ILOG. All other trademarks are the property of their respective owners.