SAP Annual General Shareholder Meeting approves Dividend and Increases Subscribed Capital from Retained Earnings and Additional Paid-In Capital (APIC)

Press Release

Dividend increases 32% to €1.45 per share/ shareholders will receive three additional new shares for each existing share

WALLDORF, GERMANYThe annual general shareholder meeting of SAP AG on Tuesday approved all agenda items with a large majority. For the 2005 fiscal year, shareholders will receive a dividend of €1.45 per share (2004: €1.10). This is a 32% increase over the previous year’s dividend. With a dividend payout ratio of 30% (previous year: 26%), a total of €447 million will be paid out to shareholders (previous year: €340 million).

The annual general meeting of shareholders further agreed to increase SAP AG’s subscribed capital from retained earnings and APIC. Once the shareholders’ resolution on the increase of the share capital has been registered with the commercial register every shareholder will receive three additional new shares (“bonus shares”) for every one existing share. This will make SAP shares even more attractive to investors, and especially private investors. SAP AG’s capital stock thus increases from approximately €316 million to approximately €1.266 billion.

Further, the SAP shareholders approved the company’s authorization to repurchase up to 30 million treasury shares and also revised the remuneration system for the SAP Supervisory Board.

For US based investors:
Currently, the ratio between the ADR and the underlying ordinary shares is 4:1, meaning that four SAP ADRs are the equivalent of one SAP ordinary share. Once the shareholders’ resolution on the increase of the share capital has been registered with the commercial register, each SAP ADR will represent one SAP Ordinary Share.

For more information, press only:
Herbert Heitmann, +49 (6227) 7-61137, herbert.heitmann@sap.com, CET
Tony Roddam, +49 (6227) 7-49133, tony.roddam@sap.com, CET
Frank Hartmann, +49 (6227) 7-42548, f.hartmann@sap.com, CET

For more information, financial community only:
Stefan Gruber, +49 (6227) 7-44872, investor@sap.com, CET
Martin Cohen, +1 (212) 653-9619, investor@sap.com, EST

About SAP
SAP is the world’s leading provider of business software solutions*. Today, SAP has more than 33,000 customers in over 120 countries. SAP® software solutions address the needs of small and midsize enterprises to global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, healthcare, retail, public sector and financial services. 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 solutions as consisting of Enterprise Resource Planning and related software solutions such as Supply Chain Management, Customer Relationship Management, Product Lifecycle Management, Supplier Relationship Management.

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