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SAP Sets New Standards for Business Process Outsourcing

Unveils “BPO Services Powered by SAP”; Certified Outsourcing and Collaboration with Leading BPO Providers Enables Companies to Drive Growth and Innovation

NEW YORK, N.Y.Further delivering on its road map for business process outsourcing (BPO), SAP AG (NYSE: SAP) today announced a new program that helps businesses execute a successful outsourcing strategy. Under the “BPO Services Powered by SAP” program, SAP endorses and actively supports the set up and ongoing operations of BPO delivery platforms in close collaboration with leading BPO providers, including ACS, ADP Inc., EDS and LogicaCMG, as initial program partners for the Human Resources Outsourcing Segment. These platforms, which are based upon the latest versions of SAP’s best-in-class solutions and deployed in a cost-effective and standard way, enable companies to benefit from process automation and innovation when outsourcing human resources or other administrative processes. The announcement was made in conjunction with HRO World, a leading human resources and outsourcing show being held in New York, N.Y., April 12-14.

Further delivering on its road map for business process outsourcing (BPO), SAP AG (NYSE: SAP) today announced a new program that helps businesses execute a successful outsourcing strategy. Under the “BPO Services Powered by SAP” program, SAP endorses and actively supports the set up and ongoing operations of BPO delivery platforms in close collaboration with leading BPO providers, including ACS, ADP Inc., EDS and LogicaCMG, as initial program partners for the Human Resources Outsourcing Segment. These platforms, which are based upon the latest versions of SAP’s best-in-class solutions and deployed in a cost-effective and standard way, enable companies to benefit from process automation and innovation when outsourcing human resources or other administrative processes. The announcement was made in conjunction with HRO World, a leading human resources and outsourcing show being held in New York, N.Y., April 12-14.

Companies around the globe are increasingly looking to outsource administrative business functions, allowing them to focus more on their core competencies and to free up valuable resources to drive growth and innovation. Compared to standard business process outsourcing, “BPO Services Powered by SAP” includes a unique combination of SAP’s long-term viability as a partner and experience in providing innovative business solutions with complementary services from leading BPO providers. Together, these components provide exceptionally low risk, cut transition and operations costs and improve standardization of quality business processes.

Companies around the globe are increasingly looking to outsource administrative business functions, allowing them to focus more on their core competencies and to free up valuable resources to drive growth and innovation. Compared to standard business process outsourcing, “BPO Services Powered by SAP” includes a unique combination of SAP’s long-term viability as a partner and experience in providing innovative business solutions with complementary services from leading BPO providers. Together, these components provide exceptionally low risk, cut transition and operations costs and improve standardization of quality business processes.

“For Procter & Gamble, outsourcing parts of our human resources organization was a strategic move to further deploy state-of-the-art processes and related technology in order to better serve our internal customers,” said Luigi Pierleoni, HR director, Procter & Gamble. “Also in BPO, the best-practice business processes embedded in SAP technology make it a key differentiator for us today and in meeting the challenges of tomorrow.”

“For Procter & Gamble, outsourcing parts of our human resources organization was a strategic move to further deploy state-of-the-art processes and related technology in order to better serve our internal customers,” said Luigi Pierleoni, HR director, Procter & Gamble. “Also in BPO, the best-practice business processes embedded in SAP technology make it a key differentiator for us today and in meeting the challenges of tomorrow.”

SAP’s services-oriented architecture, powered by the SAP NetWeaver™ platform, makes it easier for companies to move non-core business processes outside the enterprise while retaining full control of information and workflows in a seamless, tightly integrated fashion. Delivering on a vision for services-oriented architecture, SAP’s road map for BPO is designed to enable customers to benefit from better and more consistent business process quality, lower overall cost and reduced risk related to BPO deployment, transition and operations.

SAP’s services-oriented architecture, powered by the SAP NetWeaver™ platform, makes it easier for companies to move non-core business processes outside the enterprise while retaining full control of information and workflows in a seamless, tightly integrated fashion. Delivering on a vision for services-oriented architecture, SAP’s road map for BPO is designed to enable customers to benefit from better and more consistent business process quality, lower overall cost and reduced risk related to BPO deployment, transition and operations.

“Fortune 2000 companies are pursuing BPO as an opportunity to improve service levels and reduce costs in their sales, general and administration processes,” said Mark Hodges, chairman, EquaTerra. “Enterprise technology is a critical enabler of BPO. SAP, a leading provider of business software solutions, has a clear and articulate value proposition to provide BPO-ready solutions to leading outsourcing providers serving this dynamic market.”

“Fortune 2000 companies are pursuing BPO as an opportunity to improve service levels and reduce costs in their sales, general and administration processes,” said Mark Hodges, chairman, EquaTerra. “Enterprise technology is a critical enabler of BPO. SAP, a leading provider of business software solutions, has a clear and articulate value proposition to provide BPO-ready solutions to leading outsourcing providers serving this dynamic market.”

Peter Bendor-Samuel, president of The Everest Group, added, “Based on our research, clients are increasingly demanding sophisticated BPO services, and business solutions such as those from SAP are setting new standards for the industry by providing the right business process technology foundations.”

Peter Bendor-Samuel, president of The Everest Group, added, “Based on our research, clients are increasingly demanding sophisticated BPO services, and business solutions such as those from SAP are setting new standards for the industry by providing the right business process technology foundations.”

“BPO Services Powered by SAP” Generates Support from Leading BPO Vendors
As the leading provider of business software solutions, SAP is a well sought-after partner for leading BPO services providers. SAP is currently working closely with a growing number of companies for their business process expertise, SAP® solution experience and quality performance on BPO projects. The dedicated services available to these companies include up-to-date support and state-of-the art operations competence, solution delivery and management support. Within the framework of this specific program, each of these companies provides respective expertise and services based on SAP solutions, and in particular for Human Resources Outsourcing:

“BPO Services Powered by SAP” Generates Support from Leading BPO Vendors
As the leading provider of business software solutions, SAP is a well sought-after partner for leading BPO services providers. SAP is currently working closely with a growing number of companies for their business process expertise, SAP® solution experience and quality performance on BPO projects. The dedicated services available to these companies include up-to-date support and state-of-the art operations competence, solution delivery and management support. Within the framework of this specific program, each of these companies provides respective expertise and services based on SAP solutions, and in particular for Human Resources Outsourcing:

  • ACS offers a full range of global human resources BPO services
  • ADP offers global payroll and human resources BPO services to multi-national enterprises
  • EDS offers global human resources BPO services
  • LogicaCMG offers international human resources management including payroll BPO services to multi-national companies
  • ACS offers a full range of global human resources BPO services
  • ADP offers global payroll and human resources BPO services to multi-national enterprises
  • EDS offers global human resources BPO services
  • LogicaCMG offers international human resources management including payroll BPO services to multi-national companies

“We see an increasing need from our customers to respond to competitive pressure, globalization and business volatility by re-aligning and focusing their organizations,” said Leo Apotheker, member of the SAP Executive Board and president of Global Field Operations, SAP AG. “Companies want to leverage the full scope of service centralization and outsourcing options, while preserving the capability to eventually change providers or re-insource services. We are committed to supporting companies using BPO to fully leverage SAP solutions.”

“We see an increasing need from our customers to respond to competitive pressure, globalization and business volatility by re-aligning and focusing their organizations,” said Leo Apotheker, member of the SAP Executive Board and president of Global Field Operations, SAP AG. “Companies want to leverage the full scope of service centralization and outsourcing options, while preserving the capability to eventually change providers or re-insource services. We are committed to supporting companies using BPO to fully leverage SAP solutions.”

Next Major Events: SAPPHIRE® ’05 Copenhagen and SAPPHIRE® ’05 Boston
Gain insight into the future of service-enabled enterprise software and learn how enterprises of all sizes across diverse industries around the world are using SAP solutions to adapt to market changes, evolve their businesses and achieve competitive advantage at SAPPHIRE® ’05, SAP’s international customer conference, being held in Copenhagen, Denmark, April 26-28, and in Boston, Massachusetts, May 17-19.

Next Major Events: SAPPHIRE® ’05 Copenhagen and SAPPHIRE® ’05 Boston
Gain insight into the future of service-enabled enterprise software and learn how enterprises of all sizes across diverse industries around the world are using SAP solutions to adapt to market changes, evolve their businesses and achieve competitive advantage at SAPPHIRE® ’05, SAP’s international customer conference, being held in Copenhagen, Denmark, April 26-28, and in Boston, Massachusetts, May 17-19.

About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 26,150 customers in over 120 countries run more than 88,700 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, 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. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, 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>)

About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 26,150 customers in over 120 countries run more than 88,700 installations of SAP® software—from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver™ platform to drive innovation and enable business change, 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. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, 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 software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

(*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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

Copyright © 2005 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 serve informational purposes only. National product specifications may vary.

Copyright © 2005 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 serve informational purposes only. National product specifications may vary.

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Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

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For more information, press only:
Jason Loesche, +1 (610) 661-8541, j.loesche@sap.com, EDT
SAP Press Office, +1 (610) 661-3200, press@sap.com, EDT
Angelika Pfahler, +49 (6251) 708-1165, angelika.pfahler@sap.com, CET
Amira Rubin, Burson-Marsteller, +1 (212) 614-5180, amira_rubin@nyc.bm.com, EDT
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