SCIENCE

PARIS, FRANCE -- ILOG(R) (NASDAQ: ILOG; NM France: SICOVAM: 006673), a leading provider of C++ and Java software components, today reported revenues of $21.1 million and income from operations of $0.8 million for the fourth quarter of fiscal year 2001, ended June 30, 2001. This compares to $20.9 million and $1.8 million, respectively, in the prior year's fourth quarter. Earnings per share (diluted) for the quarter were $0.04, compared to $0.10 in the previous year. Results for the 2001 fiscal year include revenues of $79.2 million and income from operations of $0.7 million. This compares to $71.3 million and $1.0 million, respectively, for the prior year. Earnings per share for fiscal 2001 were $0.05 on 17.5 million shares, compared with $0.07 on 17.9 million shares in the prior fiscal year. "Customers continue to value our products, even in this market downturn," said Pierre Haren, president and CEO of ILOG. "Business increased this quarter in the finance, transportation and e-government markets. For example, several large ILOG customers such as United Airlines, Sabre Group and VISA made additional purchases this quarter, while we've also seen an influx of new smaller customers. Weakness in the telecommunications market and in some parts of our value chain business caused some lowered royalty payments, order delays and reductions in the initial size of contracts in those sectors as certain customers adopted temporary cost-saving measures." Added Haren: "Even with these market conditions, our overall competitive position has improved. Our diversified business model - balanced between ISVs and corporations, and across market sectors, product lines and geographies - helps us weather challenging periods. In short, we're well equipped for the future." ILOG's ISV portfolio grew to new levels during the quarter as the company captured design wins with a record 33 new ISV partners, bringing the total to more than 300. Newcomers include: Murex, a vendor in the financial services market; NetDecide and Bowstreet, offering e-business solutions; and Inter Design Technology, a Japanese supplier of design automation products. For additional information visit www.ilog.com/