MOUNTAIN VIEW, Calif. and PARIS, February 16, 2005

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"The number of rated vendors has increased by 15% [compared with last year], but the actual number has increased even more," wrote Gartner Vice President and Distinguished Analyst, Jim Sinur. The report also noted that �All indicators point to a growing market. Gartner refers to business rule engines as an �agility-focused� technology� alongside business process management, Web services and model-driven generators. �There is a premium on agility for most business sectors today, and we only expect the demand for agility to increase during the next 10 years,� said Sinur in the report.

According to the report, Vendors in the Leaders quadrant are most likely to have high revenue in this market, high market share in terms of customers and products that are of interest to a wide audience.

ILOG�s business rule management system (BRMS) product line includeILOG JRules™,ILOG Rules™ for .NET®andILOG JConfigurator. ILOG�s BRMS products improve business response times to customer needs, regulations and competitive threats. ILOG�s BRMS customers include eBay, Freddie Mac, Hallmark Cards, Sabre, Southwest Airlines, 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.
* Magic Quadrant for Business Rule Engines, 2005, February 8, 2005 by J. Sinur.

ILOG JRules™

ILOG Rules™ for .NET®

ILOG JConfigurator

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 visitwww.ilog.com

ILOG is a registered trademark of ILOG.

Magic Quadrant Disclaimer

The Magic Quadrant is copyrighted February, 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.

Forward-Looking Information

This release contains "forward-looking" information within the meaning of the United States Securities laws that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, without limitation, current business conditions, the evolution, growth and profitability of the business rule management solutions, business process management and business activity monitoring software markets for the company�s products based on its business rule technology and those risks and uncertainties mentioned under "Risk Factors" in the company's form 20-F for the year ended June 30, 2004, which is on file with the United States Securities and Exchange Commission.

News Source : MOUNTAIN VIEW, Calif. and PARIS, February 16, 2005