LUDWIGSHAFEN, Germany, Aug. 23, 2006-- ILOG(R) today announced that BASF AG, the world's leading chemical company based in Germany, has chosen ILOG's market-leading planning and scheduling software to create flexible, real-time production planning for its Styrene Polymers plastics manufacturing operations in Europe. Using ILOG's optimization-based planning and scheduling solution, BASF better aligned its plastics production with demand, while accomplishing planning tasks two to three times faster than the previous planning method.

Styrene polymers are all-purpose plastics that are used for a wide range of products, from cars and computer cases, to printers, CD cases and many other products. BASF wanted a planning solution that would allow them to better align production output and the supply chain with market demand.

BASF produces styrene polymers at three plants: at its headquarters in Ludwigshafen, Germany, in Antwerp, Belgium and in Tarragona, Spain. Prior to implementing the ILOG optimization-based solution, the production planning and optimization was carried out manually with highly-detailed spreadsheets that calculated production volumes for each product at each site, taking into account a variety of constraints such as required staff, set-up times for new product output slots and the synchronization of multiple production stages. In order to further improve synchronization of customer demand with production volume and to speed up the entire production planning process, BASF chose ILOG's optimization technology to enable a tightly integrated planning solution.

The new integrated production planning system uses ILOG planning and scheduling software in combination with SAP's Advanced Planner and Optimizer (APO) solution to better synchronize the planning and production processes. Production planners are now able to set up a new plan faster than before. In addition, production volume is more closely tied to customer demand. The new planning solution helps lower stock levels, cutting inventory costs, while maintaining BASF's ability to deliver material immediately to its customers.

"The combination of the ILOG optimization software and SAP APO enables us to plan the production continuously for any given production volume. The ILOG engine returns planning solutions quickly to the planner, accelerating the entire planning process," said Stephan Franke, Business Expert at BASF and project responsible for the new production planning system. "As a result we can now communicate and discuss plans between production planners and on-site staff more efficiently."

More than 1,000 commercial customers, including 160 members of the Global 500, use ILOG optimization tools, engines and applications to solve the world's most challenging planning and scheduling problems. These customers include APL, BNSF, JR East, Logistics, Maersk, Schneider, SNCF, United Airlines, the United States Postal Service and UPS in transportation and logistics; and Airbus, Coors, Dell, Hansol Paper, Michelin, Mitsubishi Chemicals, Nippon Steel, Nissan, Porsche, Saint Gobain, Thyssen Krupp, and Toyota in manufacturing. ILOG optimization products are also used by a majority of leading Supply Chain Management software vendors, including Infor, Manhattan Associates, Manugistics, Oracle, Red Prairie, SAP and SSA Global, as well as in research programs at over 1,000 universities around the world, making the products the "gold standard" for performance and solution quality in the Operations Research community. For more information, please visit: http://www.ilog.com/products/optimization.

About ILOG

ILOG delivers software and services that empower customers to make better decisions faster and manage change and complexity. Over 2,500 global corporations and more than 465 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 730 people worldwide. For more information, please visit http://www.ilog.com.

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