ILOG selected as a Red Herring Small Cap 100

Award Recognizes ILOG Leadership in Technology Innovation and Strategy

MOUNTAIN VIEW, Calif. - December 12, 2005 — ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364) today announced that it has been selected by Red Herring magazine as one of the inaugural Red Herring Small Cap 100. The editors of Red Herring evaluated over 2,500 technology companies from North America, Europe, and the Asia-Pacific region for the award.

According to Red Herring’s editors, The Red Herring Small Cap 100 were selected for their innovative technology and smart business models that nurture growth and profitability. Red Herring’s Innovation Index, global perspective, and provocative outlook on the technology landscape make this list a unique tool for technology and financial executives.

“The winners on this list are the most competitive, the most innovative, and the most promising technology companies in the small-cap segment. We hope that the Red Herring Small Cap 100 list will shine the light on them that they deserve," said Joel Dreyfuss, Editor-in-Chief of Red Herring magazine.

Today’s recognition follows a successful 2005 for ILOG, including fiscal year results with more than 20% revenue growth and a more than four-fold increase in profitability. In addition, research firm IDC just named ILOG the Business Rule Management System (BRMS) market leader for the second year in a row. Three years ago, ILOG made its BRMS a strategic focus, recognizing it as a critical platform for the global enterprise. Accordingly, BRMSs have become essential elements of IT projects for businesses worldwide because they address the challenges created by faster business cycles and aging software architectures that cannot accommodate change quickly enough.

The award ceremony for the Small Cap 100 will be held during the Red Herring Fall 2005 conference, December 13th-15th in San Francisco, California. All award winners will be profiled in issue #47 of Red Herring magazine, on sale December 12 th, which also contains Red Herring’s Top 10 Trends for 2006. The full list can also be viewed at http://www.herringevents.com.

About ILOG

ILOG delivers software and services that empower customers to make better decisions faster and manage change and complexity. Over 2,500 global corporations and more than 465 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 690 people worldwide. For more information, please visit www.ilog.com.

About Red Herring Events

Red Herring events have long delivered clear and intelligent insight into the critical trends shaping the future of technology. We bring together industry leaders, venture capitalists, entrepreneurs, and our own business intelligence team to share ideas and present our research-based discoveries. Participants explore the strategic shifts and disruptive impact that new technologies will have in key U.S. and international markets. Along the way, they will get a glimpse of the future. Additional information is available at http://www.redherring.com/events.