SAP CEO and Co-Chairman Henning Kagermann Highlights China Customer Momentum at SAPPHIRE Orlando 2002

SAP Maintains China Leadership Position and Cites China as a Key Growth Market in the Region

SingaporeSAP AG (NYSE: SAP) today announced that companies of all sizes and vertical sectors in China are choosing SAP to create significant strategic business value through collaboration, empowerment and integration of information. In Q1 this year, SAP China demonstrated strong customer momentum with key wins including Beijing Telecom Co., China Ocean Shipping Company (COSCO), Fenghuo Telecom, Juhua Group and Shenzhen Taitai Pharm. Co.

“In China, we have consistently achieved 50% annual revenue growth over the last few years and today, our customers’ success has put us in pole position in China. Since 1992, SAP has been helping customers in China and our continued investment in this market underscores our commitment and focus to our customers’ success. SAP will continue to invest in the China market working in close partnership with the government and strategic customers,” said Henning Kagermann, CEO and Co-Chairman of SAP AG, at SAPPHIRE ’02, SAP’s international e-business conference being held in Orlando, Florida.

Contributing to China’s Enterprise Reform
SAP has over 300 customers including household names in China, a market where information technology is playing a central role in the reform of over 100,000 state-owned enterprises. The State Commission for Economy and Trade (SETC) recently picked three firms who have demonstrated the best usage of IT in enterprise reform to serve as case studies for other organizations. SAP customers, Legend Computer and Haier, were the two customers showcased.

“We are proud that the Government of China has recognized SAP customers for their vision and use of IT in transforming their enterprise. Having been in the market for the last ten years, SAP is in a unique position to contribute to the nation’s enterprise reform program,” said Hans-Peter Klaey, President of SAP Asia Pacific. “We see this as a recognition that SAP is a partner of choice for both large enterprises and small-to-medium businesses that are looking to leverage China’s WTO accession into global success. SAP, through its development center in China, has over the years focused on developing and localizing solutions that address the needs of Chinese businesses and businesses operating in China.”

Key Customer Wins in China
Recent key SAP customer wins in China include Beijing Telecom Co., China Ocean Shipping Company (COSCO), Emery, Fenghuo Telecom, Kinhom Group, Taitai Pharm., and Sha Gang Steel.

COSCO, a significant win for SAP, will be one of the largest SAP implementations in China and the first global account headquartered in China. COSCO will be implementing mySAP Financials and plans to extend its system across 1,000 subsidiaries within the organization to reach over several thousand users.

“Asian companies like COSCO are seeing the long-term value SAP brings to their business,” said Klaus Zimmer, President of SAP Greater China. “SAP provides complete solutions that represent the best practices of global enterprises and address the specific issues of Chinese enterprises in a range of industries including financial services, consumer product and retail, high-tech, automotive, transportation, telecommunications, and utilities. Today we make this all possible with over 200 highly skilled employees, an extensive network of local partners, three major offices and a global support center dedicated to our customers and business partners in China.”

SAP customers in China include small and mid-sized businesses (SMBs) such as Baodao Glasses, Lion King, Hangzhou and Jiefang Road Shopping Center. Large enterprises in China that are implementing SAP solutions include Legend, Haier, Hongta, COSCO, Sinopac, Sinochem, Puedong Development Bank, Yan Kuang, FAW-Volkswagen, Shanghai General Motors, Li Ning, KONKA and Robust.