SAP Continues to Achieve Growth Through Innovation Across Asia Pacific

Brisbane, AustraliaSAP Asia Pacific today announced that
its business across Asia Pacific (excluding Japan) continued to gain momentum
as the region’s economy experienced a strong recovery in 2004. The company’s
product revenue in quarter one (Q1) 2004 surpassed the same period last
year by 11 percent . External revenue for software licensing also grew
by 9 percent.

SAP’s strong business momentum resulted from heightened demand for the
company’s key solutions, including mySAP™ Customer Relationship Management
(mySAP CRM), mySAP™ ERP and the SAP NetWeaver™ integration and
application platform. These offerings helped generate momentum within
Australia, China, Hong Kong, India, Taiwan and Thailand. The momentum
was driven by a combination of factors, including strong uptake of mySAP
ERP in the mining, retail, public sector and services industries.

Notable first quarter wins for SAP Asia Pacific (excluding Japan) included:
Health Insurance Commission (Australia) in a deal that included SAP NetWeaver;
Franklins (Australia) with mySAP ERP incorporating an SAP best practice
for the retail industry (Australia); Bank of China (China) with mySAP™
Business Suite; and ABG Shipyard (India) with SAP® R/3.

“In 2003, SAP successfully laid the foundation for our company’s
growth,” said Hans-Peter Klaey, president and chief executive officer,
SAP Asia Pacific. “This year, we are enjoying significant growth
through innovation. Our achievements in the first quarter throughout Asia
Pacific, excluding Japan, demonstrate that our customers, whether they
are small or large, recognise the benefits of our solutions, particularly
in this increasingly competitive marketplace. SAP continues to be successful
because we help companies execute flexible business strategies and drive
business change and innovation.”

SAP will continue to focus on key business areas in 2004, including the
midmarket sector, SAP NetWeaver, mySAP ERP, mySAP CRM and SAP for Financial
Service Provider.

Midmarket Success
SAP has been successful in the midmarket segment and the company’s business
strategy has paid off with significant customer wins in this area. In
April this year, a university research study from Germany showed that
midmarket companies that applied SAP Best Practice while implementing
SAP solutions successfully increased efficiency, reduced implementation
costs and risks and accelerated return on investment (ROI).

In the midmarket space, SAP Asia Pacific acquired 100 new customers in
Q1 2004 and more than 60 of these were SMB customers. SMB wins for the
region included Made For U Cook Gear (Australia); electronics supplier
Rakon (New Zealand); Jiangmen Huiha Gas (China); ABG Shipyard (India);
Songwon Industrial Co. (Korea); PT Menara Bina Diesel (Indonesia); Ambergris
Solutions (Philippines); Ennyah Technologies Corp (Taiwan); Krieng Thai
Wattana (Thailand) and Hwee Seng Audio Products (Singapore).

To help achieve its goal of becoming the number one SMB player in Asia
Pacific by 2005, SAP has established an SMB business unit with more than
100 employees in this region. SAP has helped SMBs capture growth potential
through streamlined processes and efficient management of their business
interaction with customers, suppliers and employees.

Leading Companies Continue to Choose SAP NetWeaver
In Asia Pacific, SAP NetWeaver has achieved strong traction in several
key industries, including the chemical, public, automotive and aerospace
industries. SAP NetWeaver supports open industry standards as well as
interoperability, providing customers with a wide array of options when
integrating SAP and non-SAP systems. Companies such as Asian Paints (India),
Malaysia Airports (Malaysia) and CJ Corp (Korea) have selected SAP NetWeaver
to enhance business efficiencies and derive increased value from their
existing IT investments. The SAP NetWeaver technology platform powers
the mySAP Business Suite family of business solutions and SAP xApps™
packaged composite applications. It can also be licensed to resolve business
integration problems across heterogeneous IT landscapes.

SAP is helping companies to execute flexible business strategies and drive
business change and innovation while reducing IT costs and complexities
with SAP NetWeaver. Delivering a unified set of technology and application
services that support innovation and business needs of enterprise, it
is the best technology platform to reduce ROI.

SAP is the innovator and key advisor for enabling technologies such as
radio frequency identification technology (RFID) in industries, especially
in the retail sector. SAP’s RFID solution, built on SAP Web Application
Server and part of SAP NetWeaver, allows companies to have more control
over supply chain management processes. In China, SAP is one of the co-founders
of the Auto-ID Center and SAP is working with local authorities to expedite
the rollout of RFID in China.
Fastest Growing CRM Vendor.

mySAP CRM continues to be the CRM solution of choice for businesses
in the region today. The success of mySAP CRM has been driven by the solution’s
unparalleled support of industry-specific processes, ease of deployment
and proven ability to deliver a quick return on investment. Recent customer
wins of mySAP CRM have reinforced SAP’s position as the region’s fastest
growing CRM vendor. Companies such as 2001 Outlet (Korea); City Developments
Ltd (Singapore); and Fraser and Neave Holdings Bhd (Malaysia) have selected
mySAP CRM to achieve greater operational efficiency and enhance customer
service. mySAP CRM is powered by SAP NetWeaver.

SAP FSI Solutions Gaining Ground
SAP continues to gain momentum in the financial and insurance industries
within Asia Pacific. More banks are adopting SAP’s industry-specific portfolio
of solutions to meet the specific local requirements of each market. These
financial institutions include Ho Chi Minh City Insurance Company, Indonesia’s
Bank Niaga, Korea’s Samsung Capital, Samsung Securities, Daegu Bank, Woori
Credit Card and BC Card, China’s New China Life Insurance Company and
Malaysia’s Bank Islam.

SAP’s financial services industry portfolio of solutions helps banks meet
the challenges and regulations for Basel II and the new International
Accounting Standards (IAS). The Basel II industry-specific capability
offers a comprehensive reporting platform for compliance with the Basel
II capital adequacy accords. This serves as an integral part of SAP’s
credit risk-management platform for managing regulatory capital and economic