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In this paper, we describe O-DEVICE, a memory-based knowledge-based system for reasoning and querying OWL ontologies by implementing RDF/OWL entailments in the form of production rules in order to apply the formal semantics of the language. Our approach is based on a transformation procedure of OWL ontologies into an object-oriented schema and the application of inference production rules over the generated objects in order to implement the various semantics of OWL. In order to enhance the performance of the system, we introduce a dynamic approach of generating production rules for ABOX reasoning and an incremental approach of loading ontologies. O-DEVICE is built over the CLIPS production rule system, using the object-oriented language COOL to model and handle ontology concepts and RDF resources. One of the contributions of our work is that we enable a well-known and efficient production rule system to handle OWL ontologies. We argue that although native OWL rule reasoners may process ontology information faster, they lack some of the key features that rule systems offer, such as the efficient manipulation of the information through complex rule programs. We present a comparison of our system with other OWL reasoners, showing that O-DEVICE can constitute a practical rule environment for ontology manipulation.