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PepsiCo, Inc. Selects SAP to Optimize Operations

PepsiCo, Inc. Selects mySAP™ Business Suite to Support Business Transformation with Single Platform for Operational Excellence and Growth

PURCHASE, N.Y.SAP AG (NYSE: SAP) today announced that PepsiCo, Inc. (NYSE: PEP) has selected SAP to provide the primary business platform to unify operations, standardize processes and increase efficiency across its divisions. The selection of mySAP™ Business Suite will provide PepsiCo with a common information systems platform to effectively integrate business processes across its enterprise. PepsiCo joins the growing number of consumer products and food and beverage companies that have adopted SAP® solutions to achieve operational excellence and competitive advantages.

SAP AG (NYSE: SAP) today announced that PepsiCo, Inc. (NYSE: PEP) has selected SAP to provide the primary business platform to unify operations, standardize processes and increase efficiency across its divisions. The selection of mySAP™ Business Suite will provide PepsiCo with a common information systems platform to effectively integrate business processes across its enterprise. PepsiCo joins the growing number of consumer products and food and beverage companies that have adopted SAP® solutions to achieve operational excellence and competitive advantages.

As one of the world’s largest convenient food and beverage companies, PepsiCo manufactures, distributes and markets global brands such as Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. To achieve maximum operating advantage from its combined businesses, the company sought a business solutions provider that would provide common enterprise visibility and operations while meeting the industry-specific needs of its diverse divisions. With mySAP Business Suite, PepsiCo will be able to streamline distribution and delivery, improve planning and forecasting, increase information transparency and link supply chain and inventory with customer-facing activities in a single, integrated process. PepsiCo will implement a full range of solutions from mySAP Business Suite, powered by the SAP NetWeaver™ integration and application platform. The implementation of the new system is over a multiyear timeframe for PepsiCo. Specific plans for prioritization and sequencing are under way.

As one of the world’s largest convenient food and beverage companies, PepsiCo manufactures, distributes and markets global brands such as Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. To achieve maximum operating advantage from its combined businesses, the company sought a business solutions provider that would provide common enterprise visibility and operations while meeting the industry-specific needs of its diverse divisions. With mySAP Business Suite, PepsiCo will be able to streamline distribution and delivery, improve planning and forecasting, increase information transparency and link supply chain and inventory with customer-facing activities in a single, integrated process. PepsiCo will implement a full range of solutions from mySAP Business Suite, powered by the SAP NetWeaver™ integration and application platform. The implementation of the new system is over a multiyear timeframe for PepsiCo. Specific plans for prioritization and sequencing are under way.

“The adoption of a common technology platform is a significant step in the ongoing transformation of our business, which will drive efficiencies and effectiveness of our multiple operating divisions and portfolio of global brands,” said Indra K. Nooyi, president and chief financial officer, PepsiCo. “SAP is a well-respected provider to consumer products companies and offers us integrated technology and industry expertise to lower our cost of technology ownership and achieve our goals for growth and organizational efficiency.”

“The adoption of a common technology platform is a significant step in the ongoing transformation of our business, which will drive efficiencies and effectiveness of our multiple operating divisions and portfolio of global brands,” said Indra K. Nooyi, president and chief financial officer, PepsiCo. “SAP is a well-respected provider to consumer products companies and offers us integrated technology and industry expertise to lower our cost of technology ownership and achieve our goals for growth and organizational efficiency.”

“PepsiCo is one of the premier consumer products companies in the world, and SAP is extremely pleased to enter into a new relationship with such a well-known and respected global industry leader,” said Henning Kagermann, chairman and CEO, SAP AG. “SAP continues to establish itself as the industry standard of excellence for consumer products companies. We look forward to helping PepsiCo—and businesses of all kinds—leverage technology to achieve growth and innovation.”

“PepsiCo is one of the premier consumer products companies in the world, and SAP is extremely pleased to enter into a new relationship with such a well-known and respected global industry leader,” said Henning Kagermann, chairman and CEO, SAP AG. “SAP continues to establish itself as the industry standard of excellence for consumer products companies. We look forward to helping PepsiCo—and businesses of all kinds—leverage technology to achieve growth and innovation.”

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 22,600 customers in over 120 countries run more than 76,100 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 22,600 customers in over 120 countries run more than 76,100 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>)

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 23, 2004. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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 23, 2004. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

Copyright © 2004 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

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For customers interested in learning more about SAP products:
Global Customer Center: +49 (180) 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

For more information, press only:
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For more information, press only:
Jim Dever, +1 (610) 661-2161, james.dever@sap.com, EDT
Antonia Stafford Ashton, +49 (6227) 7-60022, antonia.ashton@sap.com, CET
SAP Press Office, +1 (610) 661-3200, press@sap.com, EDT
Bryan Nella, Burson-Marsteller, +1 (212) 614-4992, bryan_nella@nyc.bm.com, EDT
Alla Ruggaber-Mast, Burson-Marsteller, +49 (69) 23809-54, alla_ruggaber-mast@de.bm.com, CET