SAP Recognized as a Leader in Supply Chain Management; SAP Delivers Leadership in Supply...

Business Editors/High-Tech Writers

SAPPHIRE

ORLANDO, Fla.--(BUSINESS WIRE)--June 13, 2001

SAP (NYSE:SAP) today announced that mySAP(TM) Supply Chain Management (mySAP SCM) is poised to become the leading solution companies use to manage their globally distributed businesses.

Two current surveys from Managing Automation and MSI, leading magazines focused on manufacturing companies, have named SAP a leader in supply chain management and manufacturing software in two separate surveys using different analytics. The annual Software Leaders report is a joint project of Managing Automation and AMR Research, Inc. The Top 100 is a joint project of MSI magazine and the Plant-Wide Research Group. SAP has delivered more than 2,000 shipments of mySAP SCM to global companies in numerous industries that can attest to the power and benefit of their mySAP SCM solutions. The announcement was made at SAPPHIRE(R), SAP's international e-business conference being held in Orlando, Fla., June 12-15.

"The global deployment of mySAP SCM throughout HP is helping us to operate more efficiently in increasingly complex and competitive environments," said Craig Flower, vice president and CIO of Hewlett-Packard Co. "We expect to see significantly lower manufacturing cycles and costs, as well as improved on-time customer delivery early on in the deployment of mySAP SCM." In addition, SAP and Hewlett-Packard recently announced that they will jointly deliver supply chain management solutions enabling customers to increase deployment times and quicken their return on investment of SCM solutions. As part of the agreement, SAP and Hewlett-Packard will cross-train sales teams and consultants to design, develop and deliver solutions that combine mySAP SCM software and Hewlett-Packard hardware and middleware to global enterprises in high-tech, consumer products, automotive, aerospace and defense, and engineering and construction industries.

SAP Delivers Supply Chain Innovation to Manufacturing Companies

SAP manages the interconnected supply chain solutions for world-leading technology innovators such as Compaq Computer Corp. (see separate Compaq mySAP(TM) Product Lifecycle Management release), Hewlett-Packard, Microsoft Corp. and Sharp Electronics Corp. High-tech companies use mySAP SCM to enhance their customer and business partner relationships, while driving costs out of their supply chain and reducing overall finished-goods inventories. Characteristics-based planning and forecasting for complex, configurable products, as well as Web-based configure-to-order scenarios, allow high-tech OEMs to anticipate market demand and respond quickly to changes to maximize profit from these short-life-cycle products and components. Business partner collaboration is also supported through mySAP SCM with a host of other collaborative scenarios and support for industry standards such as RosettaNet.

Heidelberger Druckmaschinen AG (HDM) is the largest printing-machine manufacturer in the world and uses mySAP SCM to manage its spare-parts business. "With the intranet global stock inquiry capabilities, our service representatives are able to view the global available-to-promise (ATP) goods in our stocking locations throughout the world. This makes us more competitive by enabling us to quickly determine the most effective way to deliver to our customers," said Axel Dancker, Global Service Logistics manager, HDM.

Equiva Trading Company is one of the largest petroleum supply/trading organizations in the world, providing supply/trading services for Equilon Enterprises LLC, Motiva Enterprises LLC and affiliates of Shell Oil Co. and Texaco Inc. mySAP SCM will provide the company with more efficient transaction processing and will improve the accuracy of financial reporting and inventory tracking. Equiva Trading Company is also working with SAP to create an open interface between SAP(R) Scheduler's Workbench and trading systems currently used in the marketplace, thereby creating open accessibility and increased scalability. Among other things, the trading interface will provide trade book and general ledger integration. It will both improve the accuracy of financial reporting and physical inventory tracking and create integrated transaction processing in the primary distribution network between refineries and product terminals.

Global mySAP SCM Leadership

The global presence of mySAP SCM is focused on transforming linear supply chains to more adaptive supply networks. SAP has assembled a growing team of supply chain management leaders with a variety of industry expertise and practical experience in generating value for technology-savvy companies.

"We recognize that planning alone does not solve the realities of business operations. In fact, SAP has raised the bar for supply chain software by actually enabling companies to plan, execute and coordinate their operational processes through a more intelligent and responsive network," said Bob Betts, senior vice president and leader of the Global Supply Chain Management team for SAP. "SAP works with its customers to deliver measurable results through supply chain solutions that solve their specific business challenges focusing on obtainable value and profitability."

SAP certified global supply chain business consultants help companies identify their key supply chain business needs and optimize their solutions for increased profitability. The value comes with a comprehensive consulting approach that integrates strategy, organization, processes and technology to create measurable benefits for companies.

At regional Centers for Supply Chain Solutions, SAP supply chain experts work with companies to develop the supply chain solutions that will resolve their unique business challenges, saving them time and money. In addition, SAP Best Business Practices for SCM provides companies with a comprehensive tool to guide them through their business decisions.

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 13,500 companies in over 120 countries run more than 30,000 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 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) 2001 SAP AG

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