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Jim Dever
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DENVER, CO., March 17, 2003 - SAP AG (NYSE: SAP) today announced that mySAP™ Utilities has been selected by the Fairfax County Water Authority in Virginia and the San Antonio Water System in Texas to improve customer service and information-sharing capabilities. The two water utilities, which together reach a total of more than 2.5 million customers, join a growing number of water, gas, and electric utility companies that have selected SAP to increase operational efficiency and enhance customer service functions. SAP made the announcement at the American Water Works Association Customer Service Conference and Exposition, being held March 16-19 in Denver, Colo.
mySAP Utilities is among an industry-leading family of twenty-two industry-specific solutions from SAP, each of which provides unrivaled depth of enterprise applications experience matched with features and functionality tailored to meet the unique needs and requirements of vertical market segments. SAP’s solution for the water utility industry combines powerful industry-specific functionality such as efficiently handling meter-reading data with important customer relationship management capabilities from mySAP™ Customer Relationship Management (mySAP CRM) to drive increased levels of responsiveness and customer satisfaction among water utility customers.

Fairfax County Water Authority: Giving Customers What They Want
Fairfax County Water Authority, Virginia’s largest water utility, which serves one out of every five Virginians who obtain their water from public utilities, will use the customer care and service (CCS) capability of mySAP Utilities to support integrated customer billing, credit, tracking, and collections functions. The water authority’s new customer information system from SAP will allow its retail customers access to a more sophisticated level of service, including up-to-the-minute customer data, a benefit unavailable with its existing system. With mySAP Utilities, Fairfax County Water Authority customer service agents will be able to react more quickly to a customer’s needs, increasing productivity as well as the overall customer satisfaction rate.

San Antonio Water System: Leveraging Technology to Streamline Business Processes
The San Antonio Water System, SAWS, which provides water and wastewater service to approximately 1.4 million residents and maintains more than 8,800 miles of water and sewer mains, selected mySAP Utilities as the platform for its integrated Business Information System project (iBIS). SAP’s enterprise management solution will support core business functions such as financial reporting, human resources management, inventory management, and purchasing transactions. mySAP Utilities will provide SAWS with a single, fully integrated solution designed to lower IT costs by replacing multiple systems and the associated interfaces. The new system will allow SAWS personnel to instantly share information across the company—from customer accounts to work orders to equipment and materials availability—to help them make better, faster business decisions. The effort will drive SAWS’ core strategic initiative to more fully serve its customers and support agency-wide excellence.

SAWS joins other municipal organizations in Texas using SAP, including the City of San Antonio and Bexar County, which are currently implementing SAP’s e-government solutions for improved constituent services and more efficient operations. City Public Service, the city-owned electric and gas utility in San Antonio, is currently adding call center functionality to its existing mySAP™ Business Suite.

“SAP is unique in offering comprehensive solutions with complete integration capabilities from front- to back-office, designed to meet the specific needs of water utilities,” said Steve Peck, president of SAP Public Services. “With this foundation, water utilities are able to optimize processes across the entire organization while increasing flexibility, productivity, and profitability. Fairfax County Water Authority and San Antonio Water System are proof of SAP’s ability to design and deliver solutions that addresses our customers’ specific business needs.”
mySAP Utilities for Water Facilities.

Due to increased customer demand, many water facilities have seen the need to replace their existing customer information systems with newer, more advanced technology that will integrate processes, facilitate information sharing, and streamline business operations. mySAP Utilities provides Web-enabled, fully integrated tools for managing customer relationships, personnel, facilities, plant maintenance, work order processes, financial matters, procurement, and utility marketplaces in an open, collaborative, and personalized environment. The integration of mySAP Utilities and mySAP CRM for the utilities industry gives utility providers greater transparency and efficiency in their product offering, service, and sales processes and the ability to improve customer service and customer loyalty. The customer care and service capability of mySAP Utilities gives a company’s customers access to information via the Internet, twenty-four hours a day. Customer communication scenarios are conducted faster and more efficiently because customer service agents can quickly access all customer information. As a result, companies can react more quickly to a customer’s needs, increasing satisfaction. SAP solutions are adaptable in terms of customer and market requirements and open to integration with both SAP and non-SAP systems.
With three decades of industry experience, SAP delivers utility industry-specific solutions for efficient data management, business processes, and mobile services. mySAP Utilities holds a worldwide market share of 40 percent in terms of user workstations. SAP is the leading provider of enterprise business solutions to the private sector and a growing leader in sales to government bodies in the United States through its subsidiary, SAP Public Services, Inc., based in Washington, D.C.

About SAP
SAP® is the world's leading provider of business software solutions. Through the mySAP™ Business Suite, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. Today, more than 19,300 companies in over 120 countries run more than 60,100 installations of SAP software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP."

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Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "intend," "may," "will," "expect," and "project" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the SAP Annual Report on Form 20-F for 2001 filed with the SEC on March 28, 2002. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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For more information, press only:
Jim Dever, +1 (610) 661-2161, james.dever@sap.com, EST
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SAP Press Office, +1 (610) 661-3200, press@sap.com, EST
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