SAP Labs Location to Open in Russia

Premiere Facility in Skolkovo Innovation Center to Drive Co-Innovation With Customers and Partners

MOSCOWSAP AG (NYSE: SAP) today announced the opening of an SAP Labs location in Skolkovo, Russia. The new SAP Labs CIS (Commonwealth of Independent States) location will begin operations in 2012 and expects to have 70 employees by the end of the year; 250 employees are targeted by 2015. The total value of SAP investments in SAP Labs CIS will be approximately EUR45 million by the year 2015.

SAP Labs CIS will be located within the Skolkovo Innovation Center, a scientific and technological complex under development 20 kilometers outside of Moscow. Often referred to as the “Russian Silicon Valley,” the 400 hectare complex was established by the Skolkovo Foundation, a non-profit organization created by the President of the Russian Federation for developing and commercializing advanced technologies in Russia. Skolkovo will host research and development facilities of multinational companies, serve as an incubator for local start-ups and host a new post-graduate university and business school.

SAP will have one of the premiere facilities in Skolkovo, providing the company with a unique opportunity to be at the center of a local ecosystem of co-innovation with customers, partners, local start-ups and venture capitalists. One large scale co-innovation project already under discussion is the development of a mega-city security, scheduling and management application, designed to meet the needs of large, growing cities in emerging markets.

Leveraging top local talent, the new SAP Labs location will also focus on research and product development in the areas of “in-memory” databases, advanced analytics and mobile network security. In addition, it will drive software localization for customers in key CIS industries such as oil and gas, mining, public sector and banking.

“Russia and the CIS region have a long and impressive heritage of excellence in science, engineering, mathematics and technology,” said Gerd Oswald, chief operating officer and member of the SAP Executive Board. “SAP’s engagement in the Skolkovo project will allow us to better use the passion and skills of the local workforce and will be a key factor allowing us to deliver innovative solutions to our customers in Russia, the region and around the world.”

SAP has big growth plans for Russian and the CIS market and expects the new labs location to play an important part in further strengthening the company’s brand with local customers, partners and potential employees. SAP’s focus in the region is to service the specific needs and expectations of the CIS market and to expand the company’s presence in Russia’s core industries with a new generation of mobile, analytic and cloud products.

The location in Russia will be the 15th in the SAP Labs network, and will allow the new labs to take advantage of a proven model of success in fast-growth markets such as Brazil, India and China. SAP Labs locations have a strong focus on research and innovation and significantly contribute to the development of SAP products and technologies.

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