SAP Enables Porsche Dealers to Reduce Inventory And Meet Real-Time Demand for Parts; Porsche Restructures Parts Logistics With mySAP Supply Chain Management

Business Wire, Jan 28, 2002

Business Editors/Technology Writers

WALLDORF, Germany--(BUSINESS WIRE)--Jan. 28, 2002

SAP AG (NYSE:SAP) today announced that sports-car manufacturer Porsche AG is using the planning and optimization functionality of mySAP(TM) Supply Chain Management (mySAP SCM) to enable faster distribution of spare parts and accessories throughout the Porsche network of European dealers.

mySAP SCM will improve the company's service and strengthen its relationship with its customers.

Using mySAP SCM, Porsche can centralize the planning of its parts supply. When the system receives numerous dealer inquiries at the same time about spare parts and accessories, it handles them automatically and simultaneously. Porsche's business partners can execute transactions directly in the SAP(R) system. Employees and partners can utilize a virtual warehouse to find out which spare parts and accessories are in stock and where they are located in the supply chain.

Likewise, the central parts warehouse can plan in real time based on data from the dealer network. As a result, parts will arrive much more quickly at the distributor sites, and dealers can reduce their safety stock. Both Porsche's central parts warehouse in Ludwigsburg and its German network of dealers are connected to the company's SAP systems for financial accounting, controlling and procurement. Porsche's European import centers also have been incorporated into the system. Porsche expects to have all its importers and dealers worldwide set up to use the SAP system by 2004.

"Excellent service in the spare-parts business contributes greatly to Porsche's future success, because after automobile production and development of components for other manufacturers, this area is one of our biggest sources of revenue," said Stefan Arnold, leader of the SCM project at Porsche. "With SAP software, we've optimized our logistics and improved our service. Spare parts now arrive in the right place at the right time."

Porsche is a pilot customer for the mySAP SCM planning and optimization software. Since 1997, the sports-car manufacturer has been migrating its heterogeneous software systems to an integrated SAP infrastructure. The restructuring of the parts business is the biggest project within the SAP installation.

About SAP

SAP is the world's leading provider of e-business software solutions. Through the mySAP.com(R) e-business platform, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. Today, more than 17,000 companies in over 120 countries run more than 44,500 installations of SAP(R) software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." (Additional information at http://www.sap.com)

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "intend," "may," "will," "expect" and "project" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the SAP Annual Report on Form 20-F for 2000 filed with the SEC on March 28, 2001. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright (c) 2002 SAP AG

SAP, the SAP logo, mySAP.com, mySAP and all other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. Other product or service names mentioned herein are the trademarks of their respective owners.