Gensym Announces Next Generation of Software.

Business Editors/High-Tech Writers

BURLINGTON, Mass.--(BUSINESS WIRE)--Dec. 3, 2003

Company is Advancing Its Leading Real-Time Reasoning Technology

to Cut Deployment Time and Effort

for Operational Decision-Support Solutions

Gensym Corporation (OTC Bulletin Board: GNSM), a leading provider of software and services for expert operations management, today announced that it has begun delivering its next generation of software products, which include its G2(R) expert system and G2-based application products. Gensym's next generation is designed to dramatically reduce the time and effort it takes to deploy operational decision-support solutions and to achieve ROI using real-time reasoning technology. Gensym is maintaining compatibility of its next generation with its previous generation.

Next Generation Capabilities

Gensym plans to largely complete the transition to its next generation of products by the end of 2004. Gensym's next generation of software products include the following capabilities:

-- out-of-the-box functionality for quick configuration and

deployment

-- support for the most current Windows UI standards

-- support of all important integration standards, such as XML,

COM, JMS, and OPC 

-- compatibility with Gensym's previous generation of products

-- the best capabilities of Gensym's previous generation of

products

-- embeddability as components within larger systems

-- new and more advanced reasoning capabilities

-- consistently buildable applications using standard functional

components

-- enhanced support for developers

-- support of advanced 3-D graphics and animation standards

"We are very excited about our next generation of our G2 and G2-based software products," said Lowell Hawkinson, Gensym's chairman, president, and CEO. "Feedback from our user community has been very positive. The next generation directly responds to the needs of our users for quickly getting applications online and delivering value and to our vision of reasoning technology playing a ubiquitous role in supporting and automating operational decisions in real time. We are extending the reasoning techniques that we have pioneered, such as encapsulation of domain-specific expertise, graphical modeling of expertise, and the combination of expert system logic with neural network models. The next generation also makes use of the latest IT industry standards to continue to ensure the ability of developers to rapidly integrate G2-based solutions within operational systems. To enable smooth migration from existing Gensym-based applications, we are maintaining compatibility with the previous generation. Also, customers that are current on software maintenance with existing products will receive next generation versions at no additional charge."

Current Availability of Next Generation Functionality

Gensym's recent introduction of its G2-based Intelligent Objects(TM) is an important milestone in the rollout of its next-generation software. Intelligent Objects constitute a major advancement in the application of expert system technology for abnormal condition management (ACM) of process plants. They provide out-of-the-box, configurable expertise for real-time management of plant equipment, such as compressors, furnaces, exchangers, and instruments. Intelligent Objects can typically be deployed within days to begin delivering savings almost immediately.

Gensym's latest G2 release, version 7.1, includes next generation capabilities in the form of new modules that dramatically speed up the ability to integrate with enterprise applications using message-oriented middleware (MOM), with email systems, and with custom applications using socket communications.

In addition to Intelligent Objects and G2, Gensym's G2-based NeurOn-Line(R), which improves manufacturing process performance through real-time neural network applications that predict product quality and process conditions, now incorporates next-generation capabilities for more rapid integration of neural network models and expert system logic. Also, a recent release of Gensym's G2-based Integrity(TM), which increases availability of IT and telecommunications networks through expert-system-based fault management, offers enhanced reasoning for fault management through a next-generation version of its graphical language for modeling root-cause expertise.

About Gensym Corporation

Gensym Corporation (www.gensym.com) is a provider of software products and services that enable organizations to automate aspects of their operations that have historically required the direct attention of human experts. Gensym's product and service offerings are all based on or relate to Gensym's flagship product G2, which can emulate the reasoning of human experts as they assess, diagnose, and respond to unusual operating situations or as they seek to optimize operations.

With G2, organizations in manufacturing, communications, transportation, aerospace, and government maximize the performance and availability of their operations. For example, Fortune 1000 manufacturers such as Alcan, ExxonMobil, DuPont, El Paso, Eli Lilly, Ford, Hitachi, Lafarge, Procter & Gamble, and Toyota use G2 to help operators detect problems early and to provide advice that avoids off- specification production and unexpected shutdowns. Manufacturers and government agencies use G2 to optimize their supply chain and logistics operations, while communications companies such as AT&T, Ericsson, Motorola, and Nokia use G2 to troubleshoot network faults so that network availability and service levels are maximized. Gensym has numerous partners who help meet the specific needs of customers. Gensym and its partners deliver a range of services, including training, software support, application consulting and complete solutions. Through partners and through its direct sales force, Gensym serves customers worldwide.

Gensym, G2 and NeurOn-Line are registered trademarks and Integrity and Intelligent Objects are trademarks of Gensym Corporation.

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that relate to prospective events or developments are deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to important risks and uncertainties, which could cause actual results to differ materially from those anticipated. These important risks and uncertainties the acceptance of our software by users, the impact of intense competition, the effectiveness of our indirect distribution channel and strategic partnerships, fluctuations in our customers' demand for our products, and the other risks which we describe under the caption "Factors That May Affect Future Results" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2003. Although we believe the expectations reflected in the forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.