Software AG and ILOG Sign a Strategic Alliance for BPM/SOA Solutions

ILOG Joins Software AG’s Partner Alliance

DARMSTADT, Germany and PARIS – January 26, 2006 – Software AG (Frankfurt TecDAX: SOW) and ILOG®, (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364) one of the world's leading providers of business rule management systems (BRMS), today announced a strategic alliance. As an initial step, Software AG will globally resell ILOG’s JRules, a key offering in ILOG’s BRMS product line. Software AG will include ILOG JRules™ in its portfolio of business process management (BPM) and service-oriented architecture (SOA) solutions.  The companies will also collaborate on joint marketing activities.

Software AG offers its customers experienced BPM experts and the appropriate technologies to achieve a continuous increase in the efficiency of corporate processes throughout the entire length of the value-added chain. With ILOG JRules, Software AG customers will be able to manage business rules throughout their entire lifecycle, giving companies even more control over complex business processes.

Business Rule Management Systems (BRMS) are essential to BPM applications because they ensure the highest levels of agility and customization for these applications. They also provide significant value in an SOA environment, where a BRMS creates decision services that are truly reusable and can be owned and maintained by business users. Using a BRMS, business policies can be managed independently of applications or processes, eliminating the need to make policy changes through traditional software coding. The resulting solutions provide for the continuous adjustment of processes in response to changing business conditions.

"ILOG is a global BRMS leader, making them a valuable addition to our Partner Alliance, in good company with technology partners such as IDS Scheer and Fujitsu," says Karl-Heinz Streibich, Chairman of the Executive Board of Software AG. "ILOG shares with us the vision of BPM and SOA; with it we are in a position to provide companies with the agility needed to succeed in international competition. Our solutions complement each other perfectly, providing maximum benefit to our customers."

"In Software AG, we have found a worldwide expert in XML, Web services, SOA and BPM that can deploy state-of-the-art SOA solutions, and which will enable us to leverage a large installed base acquired over the years" said ILOG Chairman and CEO, Pierre Haren.

Software AG, headquartered in Darmstadt, Germany, provides a full range of products and services to deliver a service-oriented architecture (SOA) IT infrastructure, based on over thirty-five years experience in high-performance databases, application development tools and integration technologies. Its technology offers process driven integration through legacy modernization and realtime single views of strategic business information. Software AG helps its customers to achieve a competitive advantage through flexible and adaptive business processes based on fast and easy integration of existing IT assets. It supports the mission-critical systems of over 3,000 customers globally. Software AG is represented in around 60 countries with more than 2,600 employees. It is listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). In 2004 Software AG posted €411 million in total revenue. http://www.softwareag.com.

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.