SAP Continues Market Leadership for Supply Chain Management; mySAP Supply Chain Management Moves Positively in Gartner Magic Quadrant

Business Wire, July 15, 2002

Business Editors/High-Tech Writers

SAP AG (NYSE:SAP) today announced that Gartner, Inc. has published the latest version of its Supply Chain Planning Magic Quadrant, reporting SAP's positive progress upward, through the Visionaries quadrant to the Leaders quadrant, with demonstrated improvements over the last version of the quadrant in field execution and supply chain vision.

SAP stated that its supply chain vision and field execution, as well as its strong vertical industry expertise, continue to have strong appeal with customers, supporting its claim of continued global leadership of the supply chain management solutions market. SAP first declared leadership in the supply chain management solutions marketplace last year, when reported software license revenues demonstrated that SAP had outpaced all other competitors.

SAP reported that the recent publication of the new Gartner report, entitled "Supply Chain Planning Magic Quadrant -- Coming Out of the Trough," provides additional evidence as to why the company continues to experience strong market momentum of its suite of supply solutions. SAP had positive progress in the Ability to Execute and Completeness of Vision categories.

According to Gartner, Leaders are vendors who are performing well today, have a clear vision of market direction, and are actively building competencies to sustain their leadership position in the market. Visionaries are companies who understand where the market is going or have a vision of changing market roles, but do not yet execute well. The Ability to Execute category shows Gartner's view of how well a vendor performs today, while Completeness of Vision is Gartner's view of how well a vendor will do in the future, based on where a market is headed.

SAP delivers supply chain solutions that are competitive with point solution offerings. By adding the value of easier integration to other critical business enabling solutions, including customer relationship management (CRM), product lifecycle management (PLM), and enterprise execution functionality, SAP allows customers to achieve faster time to market, lower operating costs, and better return on their technology investments.

"The market momentum demonstrated by SAP is clear evidence that customers are in increasing numbers aligned with our vision of how adaptive supply chain networks will be managed in the future," said Claus Heinrich, member of the SAP executive board. "SAP supply chain management solutions leverage technological innovation like agents and RFID, tight integration with key business processes across the enterprise, and years of in-depth vertical industry experience gained from working with a broad base of customers -- assuring that the latest analyst research reflects not only today's success but also a trend in market leadership for SAP that is sustainable over time."

For more information on mySAP(TM) Supply Chain Management (mySAP SCM), please refer to the mySAP SCM Fact Sheet at www.sap.com/press/factsheets.> 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 18,000 companies in over 120 countries run more than 50,000 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.)

About Gartner's Magic Quadrant

The Magic Quadrant is copyrighted June, 2002 by Gartner Inc., Inc. and is reused with permission. Gartner Inc.'s permission to print or reference its Magic Quadrant should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner Inc.'s opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner Inc.-defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Gartner Inc. does not advise enterprises to select only those firms in the Leaders segment. In some situations, firms in the Visionary, Challenger, or Niche Player segments may be the right match for an enterprise's requirements. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner, Inc. research is intended to be one of many information sources including other published information and direct analyst interaction. Gartner Inc. expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.

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 2001 filed with the SEC on March 28, 2002. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.