ILOG Optimization Software Trims Production Time, Cost for Popular Chrysler PT Cruiser; DaimlerChrysler Expands Use of ILOG Solver for an Estimated $27 Million in Savings Annually.

Business Editors/Automotive Writers

DETROIT--(AutomotiveWire)--Sept. 12, 2000

Consumer demand for the hot-selling new Chrysler PT Cruiser(R) from DaimlerChrysler(R) (NYSE:DCX) is setting records across North America. To meet consumer demand, DaimlerChrysler relies on the Centralized Vehicle Scheduler (CVS), based on optimization software from ILOG(R) (NASDAQ:ILOG; EURO-NM) to keep PT Cruisers rolling off the assembly line on time. Recently deployed on the vehicle manufacturing and paint lines for the PT Cruiser, the CVS system also saves the company an estimated $27 million annually through increased efficiency. The announcement was made today at the Auto Tech Expo at the Cobo Center in Detroit, Sept. 12-14, 2000.

At the Toluca, Mexico facility, where the PT Cruiser is produced, DaimlerChrysler started full production of the PT Cruiser on June 30 - two weeks earlier than projected, and was able to add approximately 4,000 additional production units for the year without additional tooling. Both achievements were supported using ILOG's sophisticated optimization software, ILOG Solver(TM).

DaimlerChrysler and the former Chrysler Corp. have used ILOG optimization products for the past three years to optimize several scheduling bottleneck areas including its vehicle painting operations. However, DaimlerChrysler is expanding use of the system to include optimization of major components such as engines, transmissions, wheels and tires at its 18 factories throughout Europe, Mexico and North America. This includes production scheduling for all Chrysler, Jeep and Plymouth vehicles in the U.S. The resulting higher vehicle quality and greater efficiency generates approximately $7 million in savings on paint operations, and another estimated $10 million to $20 million in cost savings annually throughout the company for other vehicle scheduling tasks.

"The CVS system has enabled us to significantly increase efficiency by improving the sequencing of vehicles during painting and other stages of production," said James Whitfield, manager of centralized vehicle scheduling and forecasting, DaimlerChrysler. "ILOG optimization technology not only solves problems that were once impossible, it does the job quickly. This is a tremendous advantage because in this industry, time isn't just money - it's survival."

When it was unveiled at the 1999 North American International Car Show, the retro-styled Chrysler PT Cruiser broke new ground for the auto industry by introducing a new industry segment - the flexible activity vehicle. To date, approximately 45,609 Chrysler PT Cruisers have been sold in the U.S., making it one of DaimlerChrysler's fastest-selling cars. The Toluca assembly plant builds PT Cruisers for the world market.

ILOG Software Optimizes Vehicle Scheduling, Sequencing

The daily build sequence for an assembly plant has a direct effect on plant efficiency and overall vehicle quality. An improper sequence results in unbalanced workloads, wasted material, and reduced productivity. A vehicle scheduler must consider a complex set of plant-specific constraints when determining which vehicle orders are assigned to which slots on the assembly line.

Running on a standard PC and a Sun Solaris(TM) platform, the CVS system is faster and more efficient than previous scheduling applications running on mainframe computers. The system is able to download scheduling data from company servers, process it and return the optimized data to the mainframe - all within minutes. Previously, this process took a full day.

"DaimlerChrysler's CVS system is the perfect example of optimization, specifically, how companies can maximize their return on investment without having to completely change their software," said Denis Sennechael, worldwide sales director for ILOG's Automotive Division. "The competitive advantages of ILOG Solver are drawn from the strengths of constraint programming technologies that work seamlessly with the existing legacy system. This provides managers with the most accurate, up-to-date vehicle sequencing information."

About ILOG

Dually headquartered in Paris and Mountain View, Calif., ILOG is the world's leading provider of software components. ILOG recently opened a sales and technical support office in Southfield, Mich., to support the automotive market. Founded in 1987, ILOG offers embeddable optimization, visualization and business rules components that dramatically shorten the development time of enterprise applications in the supply chain, telecommunications, transportation and financial services industries. ILOG already has a significant market share for its optimization software and is playing an active role in the emergence of the e-business software components market. Visit www.ilog.com for additional information.

Chrysler and PT Cruiser are registered trademarks of DaimlerChrysler. ILOG is a registered trademark, and ILOG Solver is a trademark, of ILOG. Solaris is a trademark of Sun Microsystems.