Leading IT Research Firm Gives ILOG Highest Score for Strategy in Business Rules Platform for Java

MOUNTAIN VIEW, Calif. and PARIS - January 17, 2006 — ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364) today announced that it has been named the strategic market leader in the recently published report "The Forrester Wave™: Business Rules Platforms, Q1 2006," by Forrester's John R. Rymer. In the report, Forrester also concludes that ILOG is a leader in business rules platforms based on the strength of its ILOG JRules™ solution for the Java platform and highlights ILOG's position as the strategy leader for the category. The report states that the business rule market has strong growth as users seek automated processes, and that the market will continue that growth trend, with revenues and client interest both rising. ILOG was recently named market share leader by two other leading IT research firms.

"The Forrester Wave™: Business Rules Platforms, Q1 2006" published January 2006 is a comprehensive lab-based evaluation of the strengths and weaknesses of the top business rules software vendors, ranked across 174 criteria. According to the report, ILOG is ahead on strategy for the category, noting that, "ILOG JRules is strong across the board" and "leads in business rules platforms for Java" calling JRules "one of the leading choices for enterprise platforms for cooperative development of business rules applications by IT developers and business users." The report continues, "ILOG JRules has a strong architecture as a general-purpose rules platform, including flexible rule processing, solid data access features, and strong support for service orientation." Forrester also evaluated ILOG Rules for .NET, and notes that ILOG's .NET offering should be viewed "as both a viable option for .NET-based rules development and indicator of ILOG's commitment to new levels of fit and platform integration of future products." Forrester concludes that "ILOG has a strong corporate strategy to support rules platforms."

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 in the leader quadrant of Gartner's Magic Quadrant for the last three consecutive years and ILOG has twice been named the BRMS market leader by IT research firm IDC. 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.