SAP ANZ Announces Strong First Half Financial Results

Sydney, AustraliaSAP Australia and New Zealand (ANZ) has
announced that total revenue for the first half is up 30 per cent over
this time last year, and product revenues are also up 26 per cent year-on-year.

These results are consistent with the positive Q2 and six month results
released by SAP AG, which showed software revenues were 497 million Euro
(2003:431 million Euro), representing an increase of 15 per cent compared
to 2003. Software revenues increased 17 per cent year-on-year. Total revenues
were 1.8 billion Euro (2003:1.6 billion Euro), which was an increase of
9 per cent compared to 2003. Total revenues increased 11 per cent year-on-year.

"A key differentiator for SAP’s continued success in this competitive
environment is our diversification within industries and our investment
on multiple fronts such as CRM, SMB and SCM," said Geraldine McBride,
Chief Executive Officer and Managing Director, SAP ANZ.

"Our results demonstrate not only our commitment to these industries
but also the speed at which we are identifying and responding to their
business needs.
"We have nailed significant wins in telecommunications, public sector,
retail and manufacturing with customers quickly acknowledging the proven
benefits of a robust and agile ERP solution."

SAP ANZ continued its push into the small and midsize business (SMB)
sector with the largest number of new customers signed across the APA
region. This contributed significantly to 195 per cent growth in SMB software
revenue compared to Q2 2003. From January to July, SAP secured 36 SAP
Business One and 10 mySAP All-in-One new deals across ANZ.

Not only has SAP experienced growth in its existing customer space, Australian
retail chain Franklins has been secured as a new customer.
SAP ANZ also experienced an aggressive uptake of ERP solutions.

Significant Q2 deals included upgrades to mySAP ERP and mySAP SCM contracts
such as New Zealand’s largest department store Farmers and dairy giant
Fonterra. Australia’s largest manufacturer of plastic products Nylex also
continued to invest in SAP solutions.

In addition, companies that wanted to leverage the SAP NetWeaver platform
included national telecommunications operator Optus and outsourcing services
provider Transfield Services. These companies took advantage of a reduction
in their total cost of ownership while attaining more flexible solutions.

Banking customer National Australia Bank (NAB) Group has further invested
in SAP’s Bank Analyzer product during Q2 in a deal designed to help the
organisation manage new global financial reporting and compliance regulations.

"SAP is unmatched in providing flexible, adaptable and fundamental
solutions tailored to helping our customers achieve profitable growth,"
said Ms McBride.
"We continue to strengthen our lead against competitors in key sectors
such as CRM, SCM, and ERP and growth has been fuelled by demand for the
SAP NetWeaver platform from organisations such as Telstra and Coles Myer."

SAP expects to maintain business software leadership in ERP and SCM across

Significant deals signed this quarter in the ERP space have seen SAP
maintain domination in this sector and mean it will continue its aggressive
bid to be the most significant CRM vendor in Australia.