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PHILADELPHIA, PA., September 14, 1999 - Today at the annual SAP America SAPPHIRE ’99 customer conference, SAP AG (NYSE ADR: SAP), the leading provider of inter-enterprise software solutions, and its customers showcased the capability of mySAP.com™ to enable collaborative business using Internet-based business scenarios. mySAP.com business scenarios are the one-step business solutions that integrate process functionality, industry-specific knowledge and the necessary services for users to succeed in their particular business endeavor. Business scenarios create significant value for companies by helping them support new business processes, reduce costs and lead times, increase operational efficiency and productivity, enhance decision support and business partnerships, and improve customer service.

“The business value of the collaborative mySAP.com environment is that SAP is providing companies with end-to-end business processes imbedded with best practices, knowledge and services to improve communication between employees, customers and partners,” said Henning Kagermann, co-chairman and CEO, SAP AG. “With proven industry experience, the largest enterprise applications installed customer base in the world, and the extensive business process solutions already in place, SAP is in a unique position to bring it all together for the next level of e-business.”

mySAP.com business scenarios provide essential collaboration between both businesses and consumers and can interoperate via the Internet with any non-SAP application. Business scenarios also provide collaboration between people within a company using SAP solutions, such as sales and marketing, finance, logistics and human resources, as well as critical decision support and data analysis activities, including strategic enterprise management and knowledge management.

mySAP.com business scenarios are assembled according to Customer and industry requirements, providing companies with comprehensive, flexible, industry-specific solutions for areas such as electronic commerce, customer relationship management, supply chain management, logistics execution management and business intelligence. Examples of mySAP.com collaborative business scenarios include:

• Collaborative Planning
• Collaborative Forecasting
• Web-accessible Customer Service
• Web-accessible Order Fulfillment
• Web-accessible Selling and Catalog
• Web-accessible Billing and Payment
• Web-accessible Buying and Procurement

Core intra-enterprise scenarios include :

• Logistics and Production
• Finance
• Strategic Enterprise Management
• Sales and Marketing
• Human Resources Employee Self-Service
• Knowledge Management and Research

“The ability to seamlessly collaborate between suppliers and customers over the Internet is paramount to the future of our business,” said Siegfried Haberer, Dow Corning executive vice president. “The business scenarios and collaborative environment SAP provides is on track with our strategy to Support end-to-end collaborative customer relationship management.”

SAP Customers Showcase Their mySAP.com Solutions
At SAPPHIRE^{® ’}99, SAP is showcasing more than 30 Internet-based business scenarios jointly with its customers.

Grainger/Dodge Phelps
As a supplier of consumer products, W.W. Grainger uses a mySAP.com collaborative business scenario for procurement to drive down costs and rapidly replenish materials and supplies for its manufacturing customers. Grainger demonstrates how it uses a mySAP.com scenario to Reduce procurement process costs for its customer, consumer products manufacturer Phelps Dodge.

Phelps Dodge outsources its materials resource optimization (MRO) inventory and procurement operations to Grainger. Phelps Dodge plant maintenance personnel order materials through Grainer Integrated Supply system, which is an SAP solution. If an item is stocked in the storeroom at Phelps, workflow directs the replenishment from the storeroom and coordinates delivery to its proper location. If it is a nonstock item, the system initiates a search to review Grainger and non-Grainger Web-based catalogs for best price and product availability. The results are automatically returned to plant maintenance personnel for approval and action.

Eastman Chemical
mySAP.com helps Eastman Chemical tie together its supply chain of partners and customers via the Internet. The mySAP.com business scenario for vendor-managed inventory (VMI) allows the company to proactively determine replenishment orders for its customers. It also uses the mySAP.com business scenario for advanced planning and optimization to order raw materials from its suppliers in real time. Replenishment orders are created directly in Eastman’s SAP system based on the forecasted plans issued by the mySAP.com business scenario for advanced planning and optimization.

With an improved multi-enterprise supply chain, Eastman’s customers and suppliers can review orders and requirements, enabling future responses via the Internet. No paperwork is required, and customers and suppliers will be able to track orders and deliveries on the Web. With a single, comprehensive production plan including its customers and suppliers, Eastman can manage its products across the entire supply chain, resulting in improved customer service and working capital. This scenario can be extended through the use of business intelligence scenarios to provide market analysis and accurate reporting capabilities.

At Eastman Chemical, we recognize the impact that vendor managed inventory can have on our bottom line,” said Bob Dorsey, chief information officer at Eastman. “The seamless integration of transactions, with improved business support and extra-enterprise inventory management within the mySAP.com business scenario, is a win-win for Eastman and its customers. We’re expecting to improve our operations efficiency and profit margins through collaborative forecasting, faster inventory turns and overhead reductions.”

CompUSA
For CompUSA, the nation’s leading retailer and reseller of personal computer-related products and services, customer service is critical to its success. In the business scenario used by CompUSA, one of its customers who is a reseller of CompUSA’s manufactured products, uses the Internet to order preconfigured products and replenish its inventory. The mySAP.com collaborative business scenario is fully integrated into compUSA’s SAP back-office solution, enabling the reseller to see up-to-the-minute product availability, expected delivery dates and real-time inventory updates. For CompUSA, the ability to provide instant information to its resellers enables it to Increase the diversity of its sales channels and allows the company to Reduce costs and improve the loyalty of its distributor and reseller network. CompUSA customers benefit from improved speed, accuracy and ease of use with Web-based transactions.

SAP Takes a New Market Approach
SAP is taking a new market approach for the Internet economy by enabling and deploying business scenarios that pull together all the functionality, knowledge and services specific to employee roles. This means individuals will access all mySAP.com offerings and business scenarios through their personalized mySAP.com Workplace (see related release).

mySAP.com business scenarios are assembled from SAP and non-SAP applications and Internet services. Based on the SAP Internet-Business Framework, a Web-standards based, flexible and open infrastructure, the SAP applications are separately maintainable and upgradable solutions. While the SAP Internet-Business Framework provides essential integration and collaboration technologies of XML-based Web messaging and WebFlow, these independent applications have been, and will continue to be, available as separate products. To Support doing business at “Internet-speed,” SAP offers its customers maximum flexibility by enabling mySAP.com business scenarios and applications to be assembled in any sequence. Building on these applications and embracing the Internet, SAP now provides a total e-business solution through mySAP.com.

SAP Applications and Business Scenarios Gaining Momentum
mySAP.com applications and scenarios are gaining momentum around the world. For example, SAP has about 250 installations of its best-of-breed Internet-enabled buying and selling solutions; approximately 270 installations of its complete end-to-end supply chain management; more than 1,250 installations of SAP business intelligence solutions; and nearly 700 corporate finance management installations worldwide. At more than 270 sites, mySAP.com customer relationship management scenarios such as Internet sales, Internet service and customer interaction center, are helping companies put customers at the heart of their business. Additionally, more than 200 of the business intelligence installations are using it to manage their marketing and sales efforts.

About SAP
As the market leader of inter-enterprise software solutions, SAP is leveraging its strength in industry-focused business software and the world’s largest enterprise software customer base to Deliver mySAP.com. mySAP.com provides an open collaborative business environment of personalized solutions on demand. This enables companies of all sizes and industries to fully engage their employees, customers and partners to capitalize upon the new Internet economy. mySAP.com allows people to harness the power of the Internet to work smarter, better and faster by optimizing supply chains, managing strategic relationships, reducing time to Market, sharing virtual information, and increasing productivity and shareholder value.

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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