SAN JOSE, Calif. -- January 22, 2004 -- ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364), a leading provider of enterprise-class software components and services, today announced that eBay, The World’s Online Marketplace®, is using ILOG JRules™, a key offering in ILOG’s Business Rule Management System (BRMS) product line, to enhance marketing promotions, among other applications, and improve business response time across eBay’s product categories, creating an even better user experience, while improving time-to-market of eBay’s products and services.

eBay has standardized on ILOG JRules across several applications to create a unified platform for managing the business rules related to the buying and selling of items on the eBay site. Because of the dynamic nature of eBay’s online business, with major updates to the software occurring regularly, the company needed a flexible solution that reduced time-to-market for these changes.

ILOG JRules allows eBay employees across departments to create and maintain business rules, allowing rule changes to be deployed instantly. Using ILOG JRules, new trends can be identified and policies can be updated in a matter of minutes. Meanwhile, ILOG JRules’ central rule repository makes managing rules across multiple sites and geographies possible in a quick, scalable and cost-effective way.

“eBay is committed to providing a world-class technology platform that ensures a stable, reliable marketplace for its users,” said James Barrese, director of systems development. “Selecting ILOG JRules was a part of our ongoing effort to enhance the user experience of the eBay site.“

eBay’s worldwide ILOG JRules implementation is believed to be the most visible and demanding to-date for business rule technology, with more than 19 million listings on eBay across 35,000 categories. ILOG JRules Business Rule Management System (BRMS), representing the latest generation of business rule software, met the demanding technical requirements associated with managing complex business policies across multiple sites and applications at eBay.

ILOG has consistently built on its history of product innovation to make ILOG JRules the industry’s leading business rule software. For the second year in a row, ILOG has been named to the leader quadrant of Gartner’s Magic Quadrant for Business Rule Engines. ILOG’s BRMS provides a competitive advantage for many strategic business applications. Compliance solutions powered by ILOG monitor high volumes of data in real time, immediately detecting and reporting faulty or fraudulent information. For business process management, ILOG’s BRMS enables the effective management of the complex, dynamic rules that can number in the thousands for a discrete business process, maximizing business agility. Customers of the award-winning ILOG JRules include CitiStreet, Fannie Mae, MetLife, Sabre and many other leading Global 2000 companies and governments worldwide.

About ILOG
For more than 10 years, ILOG's innovative enterprise-class software components and services have helped companies maximize their business agility and improve operating efficiency. Over 1,000 global corporations and more than 300 leading software vendors rely on ILOG's business rules, optimization and visualization technologies to achieve dramatic returns on investment, create market-defining products and services, and sharpen their competitive edge. For more details, please visit www.ilog.com

ILOG is a registered trademark, and JRules is a trademark, of ILOG. eBay is a registered trademark, and The World’s Online Marketplace is a trademark, of eBay. All other trademarks are the property of their respective owners.

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, the success and revenues of ILOG JRules in the e-commerce marketplace and those risks and uncertainties mentioned under "Risk Factors" in the company's form 20-F for the year ended June 30, 2003, which is on file with the United States Securities and Exchange Commission".