Leading IT Research Firm Ranks ILOG Number One in Business Rule Engine Software Market

Analyst Research Confirms ILOG Market Position in Growing Market

MOUNTAIN VIEW, Calif. and PARIS – January 18, 2006 – ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364) today announced that Gartner Dataquest (“Gartner”) has published a December 2005 market report which ranked ILOG the worldwide market share leader in the business rule engine software market, based on license revenue for 2004.   Gartner Dataquest’s detailed market analysis is entitled “Market Share: Business Rule Engine Software, Worldwide, 2004.”

The report from Gartner Dataquest revealed that ILOG led in the worldwide business rule engine software market in 2004 with 18.1 percent market share, based on license revenue. ILOG’s double-digit year-over-year growth in 2004 of 17.6 percent reflected growing market acceptance of business rule solutions, according to the report. The report also indicated that the total worldwide Business Rule Engine (BRE) software market experienced double-digit year-over-year growth from 2003 through 2004 and that “growth is anticipated to continue as BREs deliver business process efficiencies, improved integration, enhanced development tools and data access.”

The research also states, ”business users want to change rules without going through a long-running change process that is, at best, measured in days and, at worst, measured in weeks and months. BREs allow end users to make dynamic real-time changes to their applications in an abstracted level of language.”

ILOG has consistently built on its history of product innovation to make ILOG JRules, its flagship BRMS product, the industry's leading business rule software. ILOG has been positioned in the leader quadrant of Gartner’s 2005 Magic Quadrant for Business Rule Engines,* published February 2005 by Jim Sinur. Customers of the award-winning ILOG JRules include CitiStreet, eBay, Zurich, MetLife, Sabre, Taiping Life, Commerzbank, Vodafone and many other leading Global 2000 companies and governments worldwide.

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 700 people worldwide. For more information, please visit http://www.ilog.com.

ILOG is a registered trademark, and ILOG JRules is a trademark, of ILOG. All other trademarks are the properties of their respective owners.

* Magic Quadrant Disclaimer

The Magic Quadrant is copyrighted February 8, 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.