Egyptian Government Selects SAP as Strategic IT Provider

Comprehensive Five-Year Multi-Million Dollar Software Deal including Egyptian National Postal Organization worth $10 Million; Customer Support Center Planned

CAIRO, EgyptSAP AG (NYSE: SAP) today announced that the Egyptian government has selected SAP as its strategic IT provider for enterprise resource planning (ERP) software. Central to the development of Egypt’s growing communication and information technology (CIT) sector, a comprehensive memorandum of understanding binds the two parties to a multi-million dollar five-year agreement beginning 2008, a four-year deal with Egyptian National Postal Organization (ENPO). In addition, both parties intend to establish a partnership for a certified SAP customer support center in Egypt in an effort to boost job creation.

“The effective deployment of information technology remains essential to the Egyptian government’s national development strategy, as the CIT sector continues to contribute significantly to economic growth and job creation,” said H.E. Dr. Tarek Kamel, Egypt’s Minister for Communications and Information and Technology. “By joining forces with a technology leader like SAP, the Egyptian government is enhancing competitiveness and economic opportunities.”

“We are honored to be partnering with the Egyptian government and play a significant role in the Egyptian government’s CIT sector,” said Léo Apotheker, deputy CEO, SAP AG. “We look forward to building a new and dynamic SAP ecosystem with our customers and partners, which will benefit a broad range of businesses, and also industries, in Egypt and the region.”

“Our partnership with SAP will create new and highly skilled jobs, and drive best practices in the public sector – from the postal system to many other sectors,” said H.E. Dr. Ahmed Darwish, Egypt’s Minister of State for Administrative Development.
H.E. Dr. Ali Moselhi, Egypt’s Minister of Social Solidarity said: “This agreement will improve the technical structure of Egypt Post, enabling the company to better fulfill its social obligations.”

SAP and Egyptian National Postal Organization Deal
Through this agreement, SAP will help ENPO increase efficiency through the automation and standardization of administrative processes and procedures, and the timely provision of necessary information and data. The government of Egypt will begin its SAP implementation through the acquisition of critical SAP applications for ENPO, including SAP® ERP and SAP® ERP Human Capital Management, SAP® for Public Sector, SAP® for Travel & Logistics Services (postal services) and SAP® for Banking.

Egyptian National Postal Organization and SAP Partnership
ENPO and SAP MENA (SAP Middle East & North Africa) plan to establish a SAP customer support center in Egypt aimed at transferring SAP knowledge and expertise to support the growth of the Egyptian IT industry.
Eng. Alaa Fahmy, Chairman of Egypt National Postal Organization said: “Our agreement will enable Egypt to further accelerate its shift toward a service-based, knowledge economy, with an emphasis on developing an educated, skilled workforce.”

About Egyptian Ministry of Communications and Information Technology (MCIT)
MCIT responsibilities range from planning, decision making, on-going research and development in state-of-the-art technologies in topics of interest and special training programs to increase the caliber in ICT-related fields.

About Egyptian Ministry of State for Administrative Development (MSAD)
MSAD formulates the general policies, plans and programs to develop performance in governmental services, and simplifies the procedures necessary for more efficient service delivery to the citizens of Arab Republic of Egypt.

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