SAP Leads the Market in the Engineering and Construction Industry With More Than 1,500 Customers Worldwide

Business Wire, April 21, 1999

NEWTOWN SQUARE, Pa.--(BUSINESS WIRE)--April 21, 1999--

SAP America, Inc., the U.S. subsidiary of SAP AG (NYSE ADR:SAP), which is the world's leading provider of enterprise software solutions, continues to gain momentum for the SAP Engineering & Construction(TM) (SAP E&C(TM)) solution through major customer wins including Day & Zimmerman, Philadelphia; GS Roofing Products Company, Inc., Irving, Texas; and K. Hovnanian Companies, Red Bank, N.J.

More than 1,500 companies worldwide in the engineering and construction industry have selected SAP to meet their industry-specific business and technology requirements. Customer endorsement for the SAP E&C solution is also reflected in the Engineering & Construction Industry Group (ECIG), which has added 32 member companies with growing interest from many others. ECIG is an extension of the independently operated Americas' SAP Users Group (ASUG).

Customers are looking to SAP and its industry-specific solutions to achieve a high level of business integration and return on investment. By having real-time access to information on project costs, materials, schedules and subcontractor availability, customers can improve project execution through tighter integration with all aspects of their business.

"Engineering and construction companies plan, produce and maintain highly complex products and industrial plants, based largely on customer-specific requirements and definitions," said Lisa Williams, analyst with the Yankee Group. "The SAP Engineering & Construction solution enables companies to manage the comprehensive business requirements in this industry for such challenges as sourcing, labor and project management as well as the complexities associated with accounting and milestone recognition."

"The success of the SAP(TM) industry solutions is tied to the close collaboration we have with our customers," said Ed Lange, senior vice president and general manager for the Discrete Manufacturing Sector at SAP America. "The Engineering & Construction Industry Group is essential in enhancing our industry-specific functionality and addressing critical requirements for all segments, from home builders and contractors to manufacturers and suppliers. Our customer base in engineering and construction is impressive, and we have strengthened our commitment to ensuring their satisfaction and success."

ECIG was formed for engineer-procure-construction (EPC) contractors, home builders, complex manufacturers, suppliers and owner-operator companies from various industries that manage large capital projects with in-house engineering divisions. Member companies share and discuss their best business practices through the use of SAP solutions. Users gain a broader insight into the SAP E&C solution through the contributions of representatives from all segments of the industry, who address topics like functionality, upgrades, enhancements and implementation.

"The Engineering & Construction Industry Group is providing an excellent forum for our participants to share answers to common issues or challenges and to cooperatively address the unique requirements of our industry," said Jim Carson, chairman of ECIG and manager, Engineering Information Systems of Eastman Chemical Co. "It also enhances the way we use the SAP E&C solution to meet our business needs, because we benefit by leveraging the best business practices of other innovative SAP users."

The SAP Engineering & Construction Solution

The SAP E&C solution focuses primarily on managing the entire product life cycle, from its design and planning and manufacturing to final assembly at the customer site. It helps businesses gain control over the entire life cycle of a project and the entire supply chain from suppliers and subcontractors to customers. The solution provides an integrated structure to manage activities and data from proposal development and planning to engineering, procurement, construction, start-up and project close-out.

The open architecture, flexibility and scalability of the SAP E&C solution enable companies of all sizes, including small and midsize companies, to take advantage of the following key benefits:

-- An integrated system to help manage project costs, profits and

cash flow, giving businesses real-time reports for monitoring

planned vs. actual expenditures

-- Accelerated engineering to integrate change management,

computer-aided design, product data management and documentation,

providing consistent processes across the entire operation

-- Tools for managing the life cycle of the asset, whether it's a

house with follow-up warranty and service or the construction of

a chemical plant

About SAP

SAP, the world's largest enterprise software company, provides companies of all sizes with business solutions that deliver A Better Return on Information(SM). SAP products and services integrate an organization from financials and human resources to manufacturing and sales and distribution. This integration enables companies to optimize supply chains, strengthen customer relationships, and make more accurate management decisions. Founded in 1972, SAP today leverages a global network of people, processes and products to assure customer success. SAP is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." The SAP World Wide Web site can be found at http://www.sap.com.