New JRules-based System Enables Cross-Agency Collaboration

MOUNTAIN VIEW, Calif. – April 13, 2005 -- ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364), today announced that the United States Department of Veterans Affairs – Veterans Health Administration (VHA) Health Eligibility Center has selected ILOG JRules™, a key offering in ILOG’s Business Rule Management Systems (BRMS) product line, to support its Enrollment System Redesign initiative intended to streamline healthcare services enrollment for 25 million veterans and their families.

In addition to streamlining the enrollment process, the VHA expects to benefit from a new, centralized business rule repository, enabled by ILOG JRules, which will provide a “central bank” of rules and a platform for cross-agency collaboration. This will allow hospitals, state employees, and clinical providers to have access to the latest eligibility and benefit level information on all patients, in real-time as it is being updated in the system.

The VHA enrollment process was faced with a growing number of ever-changing regulations that, when combined with the large number of constituents served, created a process too complex for the existing systems to handle. As part of the Enrollment System Redesign initiative, ILOG JRules will be used to automate healthcare eligibility, enrollment, case management and more effectively maintain VHA eligibility policies and procedures. By liberating business rules from VHA’s IT legacy systems and storing them in ILOG JRules’ centralized repository, VHA policy makers and business analysts can access and modify the rules more quickly, react to change easier and ultimately improve the speed and quality of the decision-making eligibility processes. With ILOG JRules, VHA will move away from expensive and difficult to maintain decentralized legacy systems.

An additional key feature of the new system is a web-based point-and-click rule editor that enables policy managers to quickly and efficiently compose, as well as update, business rules in a familiar language rather than having to rely on the IT staff. This enhanced agility is expected to reduce VHA administrative costs while enabling the decision making process to happen in real-time.

ILOG has consistently built on its history of product innovation to make ILOG JRules the industry’s leading business rule software. For the third year in a row, ILOG has been named to the leader quadrant of Gartner’s Magic Quadrant for Business Rule Engines and ILOG was recently named the BRMS market leader by IT research firm IDC. ILOG’s BRMS customers include eBay, Freddie Mac, Sabre, Zurich American and many other leading Global 2000 companies and governments worldwide. In addition, since BRMS is becoming an essential complement to business process management (BPM) applications, ILOG has partnered with leading BPM solution providers to provide BRMS solutions to their customers. These providers include BEA, FileNet, Fujitsu, IBM and Vitria.

About ILOG
ILOG delivers software and services that empower customers to make better decisions faster and manage change and complexity. Over 2,000 global corporations and more than 400 leading software vendors rely on ILOG's market-leading business rule management system (BRMS), optimization and visualization software components, to achieve dramatic returns on investment, create market-defining products and services, and sharpen their competitive edge. The BRMS market share leader, ILOG was founded in 1987 and employs more than 600 people worldwide. For more information, please visit www.ilog.com

ILOG is a registered trademark, and ILOG JRules is a trademark, of ILOG.