ILOG Reports Results for the Quarter and Year Ended June 30, 1997

Business Wire, August 4, 1997

                            ILOG S.A.
         Consolidated Statements of Operations (unaudited)
               (in thousands, except per share data)


                       Three Months Ended         Year Ended
                      June 30     June 30     June 30     June 30
                         1997        1996        1997        1996
Revenues:
  License fees         $6,115      $6,117     $22,553     $18,848
  Services              3,454       2,186      10,772       7,166
     Total revenues     9,569       8,303      33,325      26,014

Cost of revenues
  License fees            191         268         801       1,050
  Services              1,900       1,182       5,962       4,458
   Total cost of
     revenues           2,091       1,450       6,763       5,508

Gross profit            7,478       6,853      26,562      20,506

Operating expenses
  Marketing and selling 5,827       5,284      21,451      17,227
  Research and
   development            953       1,115       4,566       4,437
  General and
    administrative      1,123       1,047       4,292       3,554
    Total operating
       expenses         7,903       7,446      30,309      25,218

Loss from operations     (425)       (593)     (3,747)    (4,712)
Net interest income
  (expense)  and other    154         (95)      1,124       (259)

Net loss                 (271)       (688)    $(2,623)   $(4,971)

Net loss per share     $(0.02)     $(0.10)     $(0.31)    $(0.73)

Share and share
  equivalents used in
  per share
  calculations         10,949       6,951       8,377      6,855


                                 ILOG S.A.
             Condensed Consolidated Balance Sheets (unaudited)
                              (in thousands)

                                          June 30     June 30
                                            1997        1996
Assets
Current assets
  Cash and cash equivalents             $ 26,037     $  4,977
  Accounts receivable                      9,740        8,453
  Other receivables and prepaid expense    2,487        2,842
     Total current assets                 38,264       16,272

Property and equipment-net and
   other assets                            3,044        2,813
     Total assets                       $ 41,308     $ 19,085

Liabilities and Shareholders' Equity
Current Liabilities
  Accounts payable and accrued expenses $ 7,799      $  7,510
  Current debt                            2,183         1,567
  Deferred revenue                        3,165         2,136
     Total current liabilities           13,147        11,213

Convertible bonds                            -          4,272
Long-term portion of debt                 1,134         2,364
     Total liabilities                   14,281        17,849

Shareholders' equity
   Paid-in capital                       38,398         8,965
   Accumulated deficit and
     currency translation adjustment    (11,371)       (7,729)
     Total shareholders' equity          27,027         1,236

     Total liabilities and
       shareholders' equity             $41,308       $19,085
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    Results and Press Release for French Shareholders

    For the benefit of our French shareholders a translation of this
announcement is also being sent to our shareholders with French
addresses of record and to anyone else upon request.  In addition, to
facilitate their comprehension of the Company's financial results the
foregoing financial statements, which are prepared under accounting
principles generally accepted in the United States, have been
translated into French Francs at the average historical exchange
rates for the related periods and the exchange rates at the relevant
balance sheet dates.  These translated financial statements for the
benefit of shareholders generally follow below.

                          ILOG S.A.
    Donnees Financieres Consolidees Clefs  (non auditees)
 (Montant en milliers de francs francais, sauf informations
                    donnees par action)


                  Trimestre clos le 30 Juin  Douze mois clos le 30 Juin
                           1997       1996          1997       1996
Chiffre d'affaires
  Logiciels              35,202     31,319        123,277     94,524
  Services               19,884     11,192         58,982     35,891
     Total chiffre
      d'affaires         55,086     42,511        182,259    130,415

Prix de revient des ventes
  Logiciels               1,100      1,372          4,362      5,256
  Services               10,938      6,052         32,691     22,294
     Total prix de revient
      des ventes         12,037      7,424         37,053     27,550

Marge Brute              43,048     35,087        145,207    102,865

Frais generaux et commerciaux
  Frais commerciaux      33,544     27,054        117,038     86,293
  Frais de recherche et
    developpement         5,486      5,709         24,775     22,171
  Frais generaux et
    administratifs        6,465      5,361          3,412     17,809
    Total frais generaux
      et commerciaux     45,495     38,124        165,225    126,273
Resultat operationnel    (2,447)    (3,036)       (20,018)   (23,408)
Produits (charge) financiers
   et autres                887       (486)         5,923     (1,303)

Resultat net             (1,560)    (3,523)       (14,095)   (24,711)

Resultat net par
    action                (0.14)     (0.51)         (1.68)     (3.60)

Nombre moyen d'actions en
   circulation           10,949      6,951          8,377      6,855


                            ILOG S.A.
             Bilans  Consolides  Resumes (non audites)
                  (en milliers de francs francais)

                                           30 Juin     30 Juin
                                             1997        1996

Actif
Actif circulant:
  Disponibilites et valeurs
  mobilieres de placement                  153,096      25,632
  Clients, nets                             57,271      43,534
  Autres elements d'actif circulant         14,623      14,637
     Total de l'actif circulant            224,990      83,803

Immobilisation corporelles, nettes et
   autres actifs                            17,899      14,487

Total de l'actif                           242,889      98,290

Passif
Passif a moins d'un an:
  Fournisseurs et comptes rattaches         45,858      38,677
  Dette financiere a court terme            12,833       8,070
  Produits constates d'avance               18,611      11,001
     Total passif a moins d'un an           77,302      57,748

Obligations convertibles                        -       22,001
Dette financiere a long terme                6,670      12,175
     Total passif a court et long terme     83,972      91,925

Capitaux propres
  Capital souscrit et prime d'emission     225,778      46,171
  Report a nouveau et ecart de
      conversion                           (66,861)    (39,805)
     Total des capitaux propres            158,917       6,366

     Total du passif                       242,889      98,290
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