SAP Launches Cross Applications; New Breed of Cross-Functional Business Applications Drives Continuous Business Improvement

Business Wire, June 5, 2002

Business Editors/High-Tech Writers

SAPPHIRE '02

ORLANDO, Fla.--(BUSINESS WIRE)--June 5, 2002

SAP AG (NYSE:SAP) today launched a new breed of applications called cross applications (xApps). xApps build on existing applications within and across enterprise boundaries, extending value by delivering adaptable cross-functional business processes. xApps support continuous business innovation by streamlining and automating interactions tied to business functions. The first xApp to be shipped is Resource and Program Management (RPM), which allows customers to drive change and innovation throughout their value chain by leveraging existing investments in IT, business relationships, and employees. The announcement was made at SAPPHIRE(R) '02, SAP's international e-business conference being held in Orlando, Fla., June 5-7.

"There is tremendous need to bring people and systems together to enact change and innovation," said Shai Agassi, executive board member of SAP AG. "The true solution for the integration challenge has outgrown the technology stack and entered the applications space. In order to drive agility and continuous innovation, enterprises need applications that combine multiple existing applications with actionable business intelligence. These adaptable xApps provide the continuity businesses seek as they execute their value cycle of translating strategy into actionable initiatives, driving operational processes, measuring business impact, and refining the strategy to maximize value."

xApps feature the following four capabilities. xApps are cross functional, connecting multiple applications from any vendor, even across company boundaries. Second, these applications are composite, supporting end-to-end processes by adding functionality through components. Third, xApps are collaborative, unleashing the power of teams to drive change and innovation in a shared business context, and providing qualified information to enable collaborative decision making. Finally, xApps leverage the mySAP(TM) Technology platform for the integration of people, information, and business processes, allowing the applications to support heterogeneous IT landscapes using industry standards. In these ways, xApps go beyond collaborative applications, extending the capabilities of a functional area (e.g. collaborative planning in supply chain management).

xApps are being developed by SAP, and will be exhibited with select partners including Accenture. At SAPPHIRE, Accenture will preview a variety of prototype xApps built on top of mySAP Technology. The prototypes include real-time integration, collaboration, and supply chain capabilities for the oil and gas industry; easy link-ups between companies and their distributors for the chemicals industry; and easily customized knowledge-exchange capabilities for a variety of industries.

"Accenture's clients are increasingly under pressure to reduce costs and increase the productivity of their workforce while operating in widely distributed and heterogeneous computing environments," said Christy Bass, Accenture partner. "Applications and employee tools such as portals need to seamlessly connect and cross technology boundaries without complexity or downtime. SAP's xApps give us the ability to enhance the productivity of our clients' workforce and give them options that keep them abreast of rapid changes in information technology."

Product launch, mergers and acquisitions, business change management, and resource and program management are all examples of cross-functional business processes that can be implemented as xApps. Resource and Program Management, which will be available in the fourth quarter of 2002, will help corporations execute on a strategy by giving business managers and teams control over a portfolio of projects, available resources, and continuous program results in order to make smart, informed decisions. RPM can integrate with SAP(R) applications, such as Collaboration Projects for mySAP(TM) Product Lifecycle Management, as well as third-party products, such as Microsoft(R) Project, Peoplesoft(R) HCM and Financials, and Oracle(R)E-Business Suite. By utilizing this type of xApp, a company may continuously fine-tune its product portfolio and drive internal innovation, resulting in project acceleration, enhanced quality, better results, and increased employee satisfaction.

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)

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.