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SAP Ecosystem Continues to Show Strong Global Momentum

Increasing Adoption of Enterprise SOA Fuels Growth of SAP Partner, Developer Communities

AMSTERDAM - October 17, 2006 —  Delivering on its commitment to help partners and customers experience the business value of enterprise service-oriented architecture (enterprise SOA), SAP AG (NYSE: SAP) today announced continued ecosystem momentum as customers move to adopt enterprise SOA by leveraging the SAP NetWeaver® platform. SAP and independent software vendors (ISVs) such as Triple Point Technology, Visiprise, MCA Solutions, and Callidus are helping leading companies adopt the SAP NetWeaver platform to build new solutions that will help optimize their existing IT landscapes, reduce total cost of ownership and prepare for future business growth. SAP and HP also announced today the continuation of joint research and development efforts with a global agreement for collaborative research into key areas that are changing the face of enterprise IT. The announcement was made at the EMEA Enterprise Services Partner Summit, being held on Oct. 17, 2006 in Amsterdam.

Global SAP Ecosystem Delivers Innovation

The SAP ecosystem is comprised of customers, system integrators, as well as a diverse roster of software solution and technology providers ranging from “technology titans” to innovative, up-and-coming start-ups.

HP

SAP and HP are collaborating within the industry value networks and enterprise services community to co-innovate for the benefit of customers, and today announced the continuation of joint research and development efforts with a global agreement for collaborative research into key areas of enterprise IT, including enterprise SOA, adaptive computing and sensor networking technologies.

The cornerstone of the multi-year agreement is the companies’ collaborative research into adaptive computing, a project that is aimed at leading to a new generation of dynamic and flexible offerings for customers. Tapping the synergies between HP’s Adaptive Infrastructure management technologies and the SAP NetWeaver platform, the companies are working to gear their hardware and software solutions to help customers of all sizes reduce IT operating costs and achieve greater flexibility in creating and running business processes with enterprise SOA – SAP’s business-driven approach to SOA.

Triple Point Technology

Triple Point Technology, a global supplier of cross-industry software platforms for the supply, trading, marketing and movement of commodities, is delivering Commodity SL, an integrated front-to-back office solution for the supply, trading and marketing of commodities. The new solution, built on SAP NetWeaver, seamlessly integrates real-time market-based portfolio and risk management from Triple Point Technology with SAP’s advanced logistical solutions to enable organizations to make faster and smarter buy, sell, move and hedge decisions.

Holly Corporation, an independent petroleum refiner and marketer, is piloting the solution and sees promise in the innovation resulting from the relationship between Triple Point, SAP and customers.
“This is exactly what we’ve been looking for—a solution that seamlessly integrates our trading and risk management functions with all of our back-office and other operations managed by SAP,” said Mark Evans, director, SAP Projects, Holly Corporation. “By combining real-time financial valuations with physical movements, we’ll be able to make the most of profit opportunities across the whole supply chain. We are thrilled to be involved in this effort—it’s going to give us a big competitive advantage.”

Visiprise

Visiprise provides a comprehensive MES Solution including shop floor control, quality management, and corrective/preventative action. These capabilities allow for improvement in enterprise manufacturing visibility and the ability to improve manufacturing results (quality, yield). The solution supports the SAP NetWeaver/xMII roadmap for adaptive manufacturing and leverages a customer’s ERP investment through greater connectivity.

“As manufacturers look to optimize their existing infrastructures and enable business process innovation, customers are recognizing the flexibility, agility and competitive advantage of adopting an enterprise service-oriented architecture," said Carter Johnson, vice president of strategy and business development for Visiprise. “Visiprise and SAP are working together to leverage the power of both companies' applications in a tightly integrated fashion.”

MCA Solutions

MCA Solutions, Inc. recently delivered the first composite application for service inventory optimization. MCA’s Service Inventory Optimization for SAP Service and Asset Management is designed to integrate with—and seamlessly extend—SAP’s solution for service parts management. This integrated composite application is designed to satisfy the unique and specific needs of complex capital equipment manufacturers in asset-intensive industries. With this debut offering, MCA and SAP are helping organizations meet the urgent demand for advanced service parts inventory optimization that consistently delivers lower costs and provides for better, faster service, while driving bottom-line business performance.
The composite application is largely driven by customer demand, as many global companies in diverse industries including aerospace and defense, high tech and industrial equipment, already use both companies’ products. Joint customers of MCA and SAP include service leaders across multiple industries including aerospace and defense industrial machinery, and high technology. These companies leverage MCA’s Service Inventory Optimization solution to meet their customer service requirements, while significantly reducing inventory and overall supply chain costs.
“Working with SAP has delivered tremendous value to MCA and our customers,” said Bob Salvucci, president and CEO, MCA Solutions. “Current customers and those evaluating our solution are quickly seeing the benefits of faster time-to-value through an enterprise service-oriented architecture, while getting even more out of their existing SAP investments.”

Callidus Software

Callidus Software, a leader in enterprise incentive management (EIM), recently achieved Certified for SAP NetWeaver status for TrueComp version 5.1.3. Callidus Software’s TrueComp solution enables companies to align incentive compensation programs with corporate strategy, while its modeling capabilities help prevent financial surprises related to incentive compensation cost. With the seamless integration provided between TrueComp and the SAP NetWeaver platform, customers benefit from a reduction in total cost of ownership by being able to further leverage their existing investments in SAP solutions.
“Today’s IT organizations aim to optimize existing infrastructures and enable business process innovation,” said Robert Youngjohns, president and CEO, Callidus Software. “Our customers recognize the flexibility and competitive advantages of adopting an enterprise service-oriented architecture. Callidus Software is pleased to play an active role in the SAP ecosystem in North America and Canada. Callidus and SAP are enabling modern enterprises to run best-in-class incentive compensation management solutions while taking advantage of their existing investment in the SAP NetWeaver Platform.”

SAP Ecosystem in Action

As part of its platform strategy, SAP is building an open ecosystem to drive enterprise SOA adoption; foster co-innovation between SAP, customers and partners; and deliver value for all participants. Leveraging its deep industry knowledge, diverse community of partners, and SAP NetWeaver as a platform for product and service innovation, SAP and its ecosystem are driving new dimensions of collaboration—turning breakthrough ideas into innovative solutions for customers.

• SAP NetWeaver Partner Community: The SAP NetWeaver community continues to gain momentum with more than 1,000 independent software vendors (ISVs) building software for the SAP NetWeaver platform and over 1,500 partner solutions built on the platform.
• SAP Developer Network (SDN): SDN recently surpassed 580,000 registered members. SDN is the central resource where SAP’s ecosystem collaborates and co-innovates solutions on the SAP NetWeaver platform and contributes to the pool of shared knowledge among independent software vendors (ISVs), system integrators, developers and consultants.
• Business Process Expert Community: The recently launched Business Process Expert Community (see Sept. 12, 2006 press release, titled “SAP Launches First Open Community for Business Process Experts”) is a resource and collaboration environment which sits side-by-side with the SAP Developer Network (SDN). The business process expert is an emerging role that encompasses business analysts, business consultants, process consultants, application consultants and process developers. Since the official launch at TechEd Las Vegas in September 2006, 50,000 business process experts have joined the community.
• Industry Value Networks: There are currently five active SAP Industry Value Networks, bringing together customers, partners and SAP to co-innovate and quickly develop solutions to solve industry-specific customer challenges: chemicals, consumer products, high tech, public sector and retail.
• Enterprise Services Community: Introduced in April 2006, SAP’s Enterprise Services Community (ES Community) currently has more than 100 members working collaboratively to define enterprise services. There are currently five active ES Community tracks: enterprise services for the banking industry, cross-industry RFID, enterprise services for mobile, enterprise services for the healthcare industry, and tax and revenue management for the public sector industry.
• SAP NetWeaver Fund: SAP recently announced a strategic investment in Questra Corporation—the first investment out of the global SAP NetWeaver Fund, which was established in May 2006 to focus on strategic investments in companies building solutions on the SAP NetWeaver platform.

“We are pleased with the continued momentum behind our ecosystem and the increasing number of software solution providers building applications on the SAP NetWeaver platform,” said Zia Yusuf, executive vice president, platform ecosystem, SAP. “The real story, however, is the innovation the SAP ecosystem is delivering to customers. By bringing together SAP, ISVs, SIs and customers to collaborate, customers win and breakthrough ideas are turned into innovative business solutions that deliver on the promise of enterprise SOA.”

The EMEA Enterprise Services Partner Summit provides SAP’s software solution provider and implementation partners with an opportunity to learn more about the services, resources and programs available within the SAP ecosystem. For more information on the EMEA Enterprise Services Partner Summit, please visit http://www.enterpriseservicesforum.com/

SAP is the world’s leading provider of business software*. Today, more than 34,600 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. With subsidiaries in more than 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>)

(*) SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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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 “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” 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 ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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