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Siemens Transportation Systems Accelerates Product Development Processes with SAP

Leading Railway Systems Supplier to Leverage the mySAP™ Product Lifecycle Management Solution to Improve Product Development Processes Across the Globe

MUNICH, GermanySAP AG (NYSE: SAP) today announced that the Transportation Systems Group (TS) of Siemens AG, a leading international supplier to the railway industry, is implementing mySAP™ Product Lifecycle Management (mySAP PLM) to streamline business processes and accelerate product development. The solution will help the company improve product data management and collaboration between business units at multiple locations. The announcement was made at the SAP Logistics and Supply Chain Excellence 2004 European Conference, being held in Munich, Germany, Feb. 17 – 18.

SAP AG (NYSE: SAP) today announced that the Transportation Systems Group (TS) of Siemens AG, a leading international supplier to the railway industry, is implementing mySAP™ Product Lifecycle Management (mySAP PLM) to streamline business processes and accelerate product development. The solution will help the company improve product data management and collaboration between business units at multiple locations. The announcement was made at the SAP Logistics and Supply Chain Excellence 2004 European Conference, being held in Munich, Germany, Feb. 17 – 18.

mySAP PLM will enable the company to consolidate and manage all project and product development information—including project plans, product-related information, product structures and engineering changes—in a single system. More than 7,500 users from eight business units located around the world will use the PLM solution to support engineer-to-order and make-to-order business processes for two key business areas—rolling stock, which includes the construction of high-speed trains; and infrastructure, which includes train operational control systems. The SAP® solution will enable Siemens product developers, engineers, service technicians, the purchasing department and the sales force to work together throughout the entire product life cycle in order to meet the unique requirements of each customer.

mySAP PLM will enable the company to consolidate and manage all project and product development information—including project plans, product-related information, product structures and engineering changes—in a single system. More than 7,500 users from eight business units located around the world will use the PLM solution to support engineer-to-order and make-to-order business processes for two key business areas—rolling stock, which includes the construction of high-speed trains; and infrastructure, which includes train operational control systems. The SAP® solution will enable Siemens product developers, engineers, service technicians, the purchasing department and the sales force to work together throughout the entire product life cycle in order to meet the unique requirements of each customer.

The worldwide implementation project at Siemens TS, being led by SAP Consulting, will replace four existing systems and a number of functionalities developed in-house.

The worldwide implementation project at Siemens TS, being led by SAP Consulting, will replace four existing systems and a number of functionalities developed in-house.

“After a lengthy evaluation process, where we looked at product functionality, cost and supplier performance, we selected SAP,” said Ludger Garg, CIO of Siemens TS. “Only SAP was able to deliver a solution that would enable truly collaborative engineering across all of our divisions and locations. With mySAP PLM, we expect to streamline our business processes, which will allow us to achieve significant growth, deliver more innovative products and increase our market leadership.”

“After a lengthy evaluation process, where we looked at product functionality, cost and supplier performance, we selected SAP,” said Ludger Garg, CIO of Siemens TS. “Only SAP was able to deliver a solution that would enable truly collaborative engineering across all of our divisions and locations. With mySAP PLM, we expect to streamline our business processes, which will allow us to achieve significant growth, deliver more innovative products and increase our market leadership.”

Offering engineer-to-order and make-to-order products as well as maintenance, support, and aftermarket sales and service for all products, Siemens TS is constantly faced with unique business challenges that affect engineering, logistics and sales processes. The end-to-end SAP solution will streamline the company’s key business processes from early tendering to the end of the product life cycle, providing each user with access to real-time data and helping ensure that each component is available at the right place and time.

Offering engineer-to-order and make-to-order products as well as maintenance, support, and aftermarket sales and service for all products, Siemens TS is constantly faced with unique business challenges that affect engineering, logistics and sales processes. The end-to-end SAP solution will streamline the company’s key business processes from early tendering to the end of the product life cycle, providing each user with access to real-time data and helping ensure that each component is available at the right place and time.

With its change and configuration management functionality, mySAP PLM provides Siemens TS with a single, comprehensive view of product data on 5,000 train components. The solution will also deliver document management functionality and computer-aided design (CAD) integration, allowing Siemens TS employees worldwide to have the same view of product-related documents and design data. The new system will help ensure that the entire organization has access to the latest product information when changes on any components are made by either the engineering or manufacturing departments.

With its change and configuration management functionality, mySAP PLM provides Siemens TS with a single, comprehensive view of product data on 5,000 train components. The solution will also deliver document management functionality and computer-aided design (CAD) integration, allowing Siemens TS employees worldwide to have the same view of product-related documents and design data. The new system will help ensure that the entire organization has access to the latest product information when changes on any components are made by either the engineering or manufacturing departments.

“Our solution is providing Siemens TS employees worldwide with a common view of product and design data,” said Claus Heinrich, member of the executive board, SAP. “mySAP PLM contributes to more transparency in business processes and enables better products, faster time to market and improved customer service, and returns tangible value on technology investments.”

“Our solution is providing Siemens TS employees worldwide with a common view of product and design data,” said Claus Heinrich, member of the executive board, SAP. “mySAP PLM contributes to more transparency in business processes and enables better products, faster time to market and improved customer service, and returns tangible value on technology investments.”

SAP is bringing together partners and customers from diverse manufacturing and services industries at the SAP Logistics and Supply Chain Excellence 2004 European Conference, being held in Munich, Germany, February 17 – 18. The two-day program features presentations, workshops, exhibits and live product demonstrations in the areas of supply chain management, product life-cycle management und supplier relationship management.

SAP is bringing together partners and customers from diverse manufacturing and services industries at the SAP Logistics and Supply Chain Excellence 2004 European Conference, being held in Munich, Germany, February 17 – 18. The two-day program features presentations, workshops, exhibits and live product demonstrations in the areas of supply chain management, product life-cycle management und supplier relationship management.

Note to Editors
mySAP PLM is a key solution in SAP’s industry solution portfolios, including SAP for Engineering, Construction & Operations and SAP for Railways Service Providers.

Note to Editors
mySAP PLM is a key solution in SAP’s industry solution portfolios, including SAP for Engineering, Construction & Operations and SAP for Railways Service Providers.

The SAP for Engineering, Construction & Operations (SAP for EC&O) portfolio of solutions addresses the business demands of companies in the plant contracting, construction, homebuilding and shipbuilding sectors. Serving 349 customers worldwide, SAP for EC&O offers a single, integrated set of solutions designed to meet all business process needs – from concept, specification and design through procurement, construction and maintenance – to help companies increase profit margins, boost after-sales, increase customer satisfaction and maintain competitive edge. (Additional information at <http://www.sap.com/solutions/industry/eng_construct/>)

The SAP for Engineering, Construction & Operations (SAP for EC&O) portfolio of solutions addresses the business demands of companies in the plant contracting, construction, homebuilding and shipbuilding sectors. Serving 349 customers worldwide, SAP for EC&O offers a single, integrated set of solutions designed to meet all business process needs – from concept, specification and design through procurement, construction and maintenance – to help companies increase profit margins, boost after-sales, increase customer satisfaction and maintain competitive edge. (Additional information at <http://www.sap.com/solutions/industry/eng_construct/>)

The SAP for Railway Service Providers portfolio of solutions is designed to support the complex business processes in freight and passenger transportation, infrastructure investment and rolling-stock maintenance. With 52 customers worldwide, SAP for Railway Service Providers helps rail organizations reduce warehousing costs, optimize asset life cycles, measure and control projects, streamline administrative processes and enhance services.
(Additional information at <http://www.sap.com/solutions/industry/serviceproviders/railwayservices.asp>)

The SAP for Railway Service Providers portfolio of solutions is designed to support the complex business processes in freight and passenger transportation, infrastructure investment and rolling-stock maintenance. With 52 customers worldwide, SAP for Railway Service Providers helps rail organizations reduce warehousing costs, optimize asset life cycles, measure and control projects, streamline administrative processes and enhance services.
(Additional information at <http://www.sap.com/solutions/industry/serviceproviders/railwayservices.asp>)

About the Transportation Systems Group (TS) of Siemens AG
The Transportation Systems Group (TS) of Siemens AG is one of the leading international suppliers to the railways industry. As single source supplier and system integrator, the Group combines in its business segments Automation & Power, Rolling Stock, Turnkey Systems and Integrated Services all the expertise necessary to cover the spectrum from signaling and control systems to traction power supplies, as well as rolling stock for mass transit, regional and main line services. Extensive experience in project management and forward-looking service concepts complement our portfolio. In fiscal 2003 (ended September 30) TS generated sales of around €4.7 billion with a staff of 17,700 the world over. Further information on TS can be found at www.siemens.com/transportation

About the Transportation Systems Group (TS) of Siemens AG
The Transportation Systems Group (TS) of Siemens AG is one of the leading international suppliers to the railways industry. As single source supplier and system integrator, the Group combines in its business segments Automation & Power, Rolling Stock, Turnkey Systems and Integrated Services all the expertise necessary to cover the spectrum from signaling and control systems to traction power supplies, as well as rolling stock for mass transit, regional and main line services. Extensive experience in project management and forward-looking service concepts complement our portfolio. In fiscal 2003 (ended September 30) TS generated sales of around €4.7 billion with a staff of 17,700 the world over. Further information on TS can be found at www.siemens.com/transportation

About SAP
SAP is the world’s leading provider of business software solutions. SAP® solutions are designed to meet the demands of companies of all sizes—from small and midsize businesses to global enterprises. Powered by the SAP NetWeaver™ open integration and application platform to reduce complexity and total cost of ownership and empower business change and innovation, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. The unique core processes of various industries, from aerospace to utilities, are supported by more than 25 industry-specific SAP solution portfolios. Today, more than 21,600 customers in over 120 countries run more than 69,700 installations of SAP® software. 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>)

About SAP
SAP is the world’s leading provider of business software solutions. SAP® solutions are designed to meet the demands of companies of all sizes—from small and midsize businesses to global enterprises. Powered by the SAP NetWeaver™ open integration and application platform to reduce complexity and total cost of ownership and empower business change and innovation, mySAP™ Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. The unique core processes of various industries, from aerospace to utilities, are supported by more than 25 industry-specific SAP solution portfolios. Today, more than 21,600 customers in over 120 countries run more than 69,700 installations of SAP® software. 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>)

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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 Annual Report on Form 20-F for 2003 filed with the SEC on March 21, 2003. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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