MOUNTAIN VIEW, Calif. And ROCKVILLE, Md.– September 29, 2004 – ILOG® (NASDAQ: ILOG; Euronext: ILO, ISIN: FR0004042364), a leading provider of enterprise-class software and services, and Planmatics®, Inc., a leader in management and information technology consulting, are providing the critical components for a new resource schedule optimization solution deployed by the United States Postal Service® (USPS) that is expected to streamline the use of labor resources.

The new Planmatics-ILOG solution, using Planmatics’ Labor Force Schedule Optimization System™ (SOS) and ILOG CPLEX®, generates optimized labor schedules that are matched to various skill sets according to a highly complex pattern of staffing needs. The new solution, which better aligns the labor force with the workload, is currently being deployed at selected 24-hour processing and distribution centers nationwide and is expected to be in 100 centers by the end of 2006.

Using the algorithms created by Planmatics, SOS allows management to align staffing resources to meet the dynamic needs of the mailing industry. In doing so, SOS allows for the most efficient combination of labor to workload. The system then uses ILOG CPLEX to determine the best “prescription” for labor schedules. By minimizing idle time and better matching labor to operational needs, the USPS expects to improve its processing efficiency and reduce its labor costs through the streamlined use of resources.

About Planmatics
Planmatics is a leader in management and information technology consulting and provides services that help organizations to improve performance through the application of revolutionary ideas. Founded in 1992, Planmatics is a fast-growing company based in Rockville, Maryland—averaging in excess of 30 percent annual growth in revenue. The firm's clients include the federal government, non-profit organizations, private, and commercial companies. In addition to its domestic clients, Planmatics services international clients as well. Postal Organizations worldwide consistently benefit from Planmatics’ innovative approaches. The two largest Postal Organizations in the world, USPS and DPWN, have sought Planmatics’ expertise in Postal Operations Systems improvement, awarding contracts to this company over some of the largest, most prestigious, strategic consulting firms. Deutsche Post successfully deployed another one of Planmatics’ productivity tools in its parcel delivery sector and is now enjoying significant improvement in service levels. The third mature tool in Planmatics’ product portfolio generates mathematically optimized equipment operating schedules. For more information on Planmatics, Inc., visit www.planmatics.com

About ILOG
ILOG's innovative enterprise-class software components and services have helped companies maximize their business agility and improve operating efficiency for over 10 years. Over 1000 global corporations and more than three hundred 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 and CPLEX are registered trademarks of ILOG. Planmatics is a registered trademark, and Schedule Optimizer System is a trademark, of Planmatics. United States Postal Service is a registered trademark of the United States Postal Service. All other company and product names are trademarks or registered trademarks of their respective owners.