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WALLDORF, GERMANY, May 24, 1999 - SAP AG (NYSE ADR: SAP), the world's leading provider of enterprise business solutions, today announced that there are now more than 560 SAP Utilities™ customer installations. Around the world, public and private utility organizations of all types and sizes are embracing the SAP Utilities solution to help streamline operations, improve efficiencies, enhance decision support, integrate business processes, support business expansion, enhance customer service, and support new billing and product offerings. Among these, more than 90 customers have chosen the new SAP Utilities IS-U/Customer Care and Service industry-specific component (IS-U/CCS™), which has been available since fall 1998, as their front-office and billing system for the future.

North American Customers
In North America, especially in the United States, the utility industry is undergoing rapid evolution as states move toward deregulation. Utility companies are re-engineering their organizations to prepare for a competitive future and seeking business and decision-support solutions that will best equip them for that future environment. To date, more than 40 North American utility organizations have selected the SAP Utilities solution.

New SAP Utilities customers in North America include GPU (Reading, Pa.), Montana Power, Nebraska Public Power, SacramentoMunicipal Utility District (SMUD), Sempra Energy (San Diego) and TECO Energy, Inc. Newly productive North American customers include PJM Interconnection and Providence (R.I.) Energy/Providence Gas.

"Our strategy includes investing in products that dominate their marketplace. SAP™ R/3^®, combined with the AcceleratedSAP™ implementation methodology, has been a great way for us to execute this strategy. Within six months, we were up and running significant portions of our business," said Peter Gill, vice president of information technology, Providence Energy/Providence Gas. "We now have access to the functionality that once was only afforded to the big companies."

"SAP R/3 allows us to more efficiently integrate our utility operations and provides a platform for growth for assimilating new acquisitions and new unregulated lines of business," said Gary Paul, SAP program director, Sempra Energy.

Latin American Customers
As the Latin American utilities market continues to experience privatization upheaval, the need for streamlined business processes continues to grow, hence more companies are moving toward enterprise business solutions. New Latin American customers include Camuzzi Argentina S.A. and Empresa Distribuidora de Electricidad de Mondoza S.A. (Argentina); Centrais Eletricas do Norte Brasil and Eletropaulo Metropolitana — Electricidade de Sao Paulo S.A. (Brazil); ELECTROANDINA S.A. and Enagas S.A. (Chile); Compañía Elétrica de Sochagota S.A. and Cia de Electricidad de Tulua S.A. (Columbia); Egenor, S.A. (Peru); Electricidad de Caracas S.A.C.A (Venezuela); and N.V. Gemeenschappelijk Elektricite-itsbedrijf BOVENWINDSE EILANDEN (Caribbean).

"With SAP R/3, we have online information that supports us to make the best business decisions and our employees have a global vision of the business operations and corporate needs, understanding that their work is fundamental and affects the entire organization," said Pedro Cullen, ERP project leader, Electricidad de Caracas S.A.C.A.

European and Middle Eastern Customers
The European utility market is facing similar changes and challenges as the Americas. Rampant mergers and acquisitions, deregulation, globalization and greater customer choice are forcing utility companies to look for new software solutions to help them streamline their businesses processes. New customers in Europe and the Middle East include Stadtwerke Frankfurt, Stadtwerke Tübingen and Stadtwerke Bremen (Germany); Electric Supply Board (ESB) (Ireland); Electricidad de Portugal (Portugal); Edon (the Netherlands); Electricia (Romania); Habas (Turkey); Enel and Sei (Italy); Yorkshire Water (United Kingdom); Krymenergo (Ukraine); and Vychodeska Plynarenska (Czech Republic).

According to Mick Leahy, project manager at Ireland's ESB, "The SAP Utilities solution helps ESB meet the challenges of the forthcoming deregulation of the Irish electricity market."

Asian-Pacific, Australian and New Zealand Customers
Customers that have recently selected the SAP Utilities solution in the Asia-Pacific region include Zhejiang Electric Power Co. (China); China Light & Gas (Hong Kong); Power Supply (Singapore); and SABA (Malaysia). In New Zealand, TransAlta Corp. and Energy Auckland are new customers, and in Australia, ETSA, Australian Gas & Light and Alinta Gas have recently chosen the SAP Utilities solution.

About SAP Utilities
SAP Utilities provides a comprehensive software solution for all types and sizes of utilities, energy suppliers and energy services companies. This solution combines core SAP R/3 functionality for enterprise management and business support with industry-specific solutions to Support unique utilities business processes such as regulatory reporting (IS-U/FERC™), Enhanced Work Management, Work Clearance Management and customer care and service (IS-U/CCS).

About SAP
SAP, the world's largest enterprise software company, provides companies of all sizes with business solutions that deliver A Better Return on Information^SM. SAP products and services integrate an organization from financials and human resources to manufacturing and sales and distribution. This integration enables companies to optimize supply chains, strengthen customer relationships, and make more accurate management decisions. Founded in 1972, SAP today leverages a global network of people, processes and products to assure customer success. SAP is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." The SAP World Wide Web site can be found at www.sap.com.

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SAP, SAP Utilities, IS-U/CCS, R/3, Accelerated SAP, IS-U/FERC, A Better Return on Information and all SAP product and service names referenced herein are trademarks, registered trademarks or service marks of SAP AG. Other product and company names herein may be trademarks of their respective owners. © Copyright 1999, SAP AG.