Mountain View, Calif.– 27 March 2007

ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364) today announced that its business rules management solutions have helped to increase the flexibility and agility of Fannie Mae’s (NYSE:FNM), automated underwriting system, Desktop Underwriter (DU®). ILOG’s Business Rules Management System (BRMS) was integrated with DU in 2001 to help further automate the mortgage loan underwriting process. Integrating ILOG’s business rules management solutions has helped Fannie Mae to deliver innovative business and technology solutions through DU.

The use of Automated Underwriting Systems (AUS) has transformed the mortgage industry in the past decade by reducing the amount of time required to underwrite a mortgage loan application from 20 days to an average of 20 minutes. This reduction in processing time has helped to reduce the overall cost of originating a mortgage.

“As we continue to expand our use of business rules management solutions we remain focused on driving greater speed and agility within DU,” said Celina Binns, Vice President for Automated Underwriting Technology at Fannie Mae. “We are pleased to work with ILOG to leverage their business rules management systems to help us reduce our time-to-market, improve operational efficiencies, and ultimately, offer our customers better service.”

“As a leader in the BRMS space, ILOG is committed to bringing technologically advanced and robust decisioning capability to Automated Underwriting and Point of Sale Systems for our customers in financial services,” said Bruno Trimouille, Director Market Development Financial Services at ILOG. “Our goal continues to be to provide software and services to improve customer service and reduce loan origination cost. Through customized solutions tailored to each company’s individual needs, we are committed to providing industry-leading solutions to our customers to further increase their operational efficiency and competitiveness, in addition to providing improved compliance monitoring and fraud detection.”

ILOG has consistently built on its history of product innovation to make it one of the industry’s leading providers of business rule management systems. Customers of ILOG’s award-winning BRMS products include eBay, Equifax, Grupo Santander, Harrah’s Entertainment, Visa, Vodafone, Zurich, and many other leading Global 2000 companies and governments worldwide. ILOG's business rule management system (BRMS) product line includes JRules, Rulesfor .NET and Rules (C++).

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