ILOG JRules to Automate Rating Process, Ensure Basel II Compliance

FRANKFURT – February 2, 2005 - ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364), a leading provider of enterprise-class software components and services, today announced that Commerzbank AG, one of Germany’s and Europe’s leading private sector banks, has chosen ILOG JRules, a key offering in ILOG’s Business Rule Management System (BRMS) product line, to create a flexible new IT architecture for the development and deployment of Basel II-compliant rating applications. Commerzbank will be using ILOG’s recently announced JRules 5.0, and expects this newest version to improve collaboration between IT staff and rating business experts, resulting in productivity gains.

In addition to meeting Basel II compliance mandates for its credit rating system by 2005, Commerzbank views the enhancement of their credit rating system a key element of its customer acquisition strategy. The JRules-based system will automate the highly-complex customer rating process involving hundreds of unique and constantly changing rules that determine the credit-worthiness of Commerzbank’s commercial and private bank customers, allowing the bank to accommodate changes that assure business agility to the process without a major overhaul of the IT infrastructure.

Prior to implementing a new rating architecture based on ILOG JRules, Commerzbank had a heterogeneous technical environment composed of many integrated and non-integrated systems. These old systems did not provide a comprehensive ability to react swiftly and accurately to customer requests and Basel II mandates. Commerzbank will use ILOG’s BRMS to automate the rating process and create a more flexible software architecture allowing rapid development of new rating applications by software architects. Furthermore, rating experts in charge of risk control will be able to maintain the business rules affecting rating policies and make rapid changes to reflect new business requirements.

“ Commerzbank takes great pride in its customer responsiveness, and by re-architecting our software systems to be more flexible, we are continuing to raise the bar in this area,” said Andreas Rose, project manager at Commerzbank. “We selected ILOG JRules as the cornerstone of our new rating system because it perfectly integrates with our rating system architecture and had the outstanding performance and ease-of-use we needed. Finally, we were impressed by the excellent local support we have received - we feel we can really rely on ILOG.“

Using ILOG JRules, Commerzbank expects to cut by nearly 70 percent the time it takes for new policy changes to be implemented in the system.

About Commerzbank
With consolidated total assets of about 380 billion euros, Commerzbank, based in Frankfurt am Main and founded in 1870, is one of Germany's - and Europe's - leading private-sector banks. Some 32,000 employees, including 7,000 abroad, serve roughly 7 million customers. Apart from the parent bank, Commerzbank AG, the Group consists of numerous subsidiaries in Germany and around the globe.

Commerzbank AG's domestic operations include a national network of over 700 branches. Internationally, the Group's activities are concentrated primarily in Europe. Additional operations are maintained in key markets such as the USA. Commerzbank also has participations in, and cooperations with, a number of institutions worldwide.

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 details, please www.ilog.com.

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