i-Transport Lab Introduces Traffic Management Product based on Gensym's G2 Software.

BURLINGTON, Mass. -- Gensym Corporation (OTC Bulletin Board: GNSM), a leading provider of rule engine software for mission-critical solutions, today announced that its partner i-Transport Lab. Co., Ltd. (ITL), a Japanese-based company specializing in transportation management software and services, has introduced a modeling and simulation product for urban traffic management, AVENUE, that is based on Gensym's G2 rule engine software. AVENUE enables planners to make better traffic management decisions and is currently being used within major Japanese cities including Tokyo, Osaka, Nagoya, Sapporo, and Hamamatsu.

AVENUE users first model a traffic system geographically, including streets, freeways, intersections, signals, parking lots, commercial centers such as shopping malls, road construction, toll gates, and other relevant traffic objects. The model includes G2 rule logic to represent driver behaviors. From the model, users dynamically simulate traffic flows for various scenarios and generate results such as traffic counts, travel times, and queue lengths. Based on analysis of the results, planners can make the traffic management decisions that best reduce community impacts and costs.

AVENUE has been successfully applied for a wide variety of traffic decisions, including those for:

--management of signal control in large urban centers to maximize traffic flows;

--planning of parking and route guidance for large shopping areas to reduce traffic flows in surrounding neighborhoods;

--minimizing effects of toll plazas on traffic;

--planning of traffic lanes, such as the length and number of right-turn-only lanes; and

--planning of road construction and maintenance activities.

"AVENUE is very stable and reliable," said Hisatomo Hanabusa of Kumagai Gumi  Co., Ltd. in Tokyo, one of the largest construction companies in Japan. "We are using AVENUE to model and simulate a variety of traffic systems. AVENUE's excellent flexibility allows us to build and customize models easily and rapidly. The software's theoretical base, developed in collaboration with the University of Tokyo, has proven to generate accurate results and gives our customers high levels of confidence in making important traffic management decisions."

"We chose G2 as the platform for AVENUE for several reasons," said Dr. Ryota Horiguchi, CEO and president of ITL. "G2's flexible and graphical object-oriented modeling enables our engineers to rapidly develop AVENUE and our users to quickly create traffic models and run simulations. G2's rules and procedures, which work in real time, enable us to model dynamic behaviors important to successful decision making that are difficult to represent using traditional modeling and simulation software. Also, we plan to further differentiate AVENUE by extending it for online use to automate traffic management decisions in real time. Gensym's G2 software is an ideal platform for these types of online applications - it is proven for online deployments in the most demanding operational environments."

For implementation and packaging of AVENUE, ITL has been teaming with Itochu Techno-Science Corporation (CTC) and QualiTech, Inc., who are Gensym partners in Japan. CTC is one of the largest IT solution providers in Japan.

"We are very pleased to be partnering with ITL, CTC, and QualiTech," said Kim Mayyasi, CEO and president of Gensym. "This is an outstanding example of the role of partnerships in our business strategy. Partners, such as ITL, provide the industry expertise while we provide the underlying reasoning technology for their software products and services. We look forward to a successful partnership for many years to come."

About i-Transport Lab. Co., Ltd.

i-Transport Lab. (www.i-transportlab.jp), established in 2000, has built its business based on more than ten years of research completed with the University of Tokyo. With its specialized knowledge and rich expertise in traffic modeling and simulation, ITL develops products for traffic simulation and provides consulting services for government, construction companies, and manufacturers of next-generation traffic control systems.

About Gensym Corporation

Gensym Corporation (www.gensym.com) is a leading provider of rule engine software and services for mission-critical solutions that automate decisions in real time. Gensym's flagship G2 software applies real-time rule technology for decisions that optimize operations and that detect, diagnose, and resolve costly problems. With G2, the world's largest organizations in manufacturing, utilities, communications, transportation, aerospace, finance, and government maximize the agility of their business and achieve greater levels of performance. Major users include ABB, Alcan, BP, Dow Chemical, DuPont, Ericsson, ExxonMobil, El Paso, Eli Lilly, Fidelity Investments, Ford, Hitachi, HP, JEA, Lafarge, Motorola, Nokia, Panama Canal, Tokyo Electric and Power, Toyota, the U.S. government, and many others. Gensym and its numerous partners deliver a range of services throughout the world, including training, software support, application consulting, and complete solutions.

Gensym and G2 are registered trademarks of Gensym Corporation. All other trademarks are property of their respective owners.

This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include those detailed in Gensym's periodic reports and registration statements filed with the Securities and Exchange Commission. Although Gensym believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Gensym Corporation disclaims any intent or obligation to update any forward- looking statement.