Large Enterprises Achieve Integration Across Subsidiaries and Operating Locations with SAP® Business One

Growing Number of Large Enterprises Choose SAP Business One for Remote Locations to Enable Consistent View of Global Data, Lower IT Costs and Harmonized Processes

HANOVER, Germany - March 09, 2006 - Confirming again its continued leadership in providing business software solutions for companies of all sizes around the world, SAP AG (NYSE: SAP) today announced that increasing numbers of large enterprises running SAP applications at their headquarters are achieving new levels of integration and operational visibility by deploying SAP® Business One at their subsidiaries and operating locations. In 2005, 79 large enterprises, including Checkpoint, KSB, LORD and Otto Bock, selected the SAP solution combined with the integration power of the SAP NetWeaver® platform to enable visibility, efficiency and control across their entire business landscape. The announcement was made at the CeBIT 2006 trade fair, being held in Hanover, Germany, March 9-15.

Today, companies of all sizes face challenges caused by consolidation and globalization, which demand faster integration of new organizational units and worldwide unified processes. Additionally, in an environment where market pressures require ever greater operational efficiency, the ability to deploy a common platform across remote locations with minimal on-site IT resources can provide companies with additional advantages against competitors.

Designed to be affordable and easy-to-deploy and available in localized versions for more than 40 countries, SAP Business One provides large enterprises a globally consistent business management solution for their small and midsize auxiliary organizations. Leveraging SAP NetWeaver, the solution can easily be integrated into enterprises’ existing SAP landscapes and provides standardized processes as well as easy exchange of data between various SAP installations. The solution promises a fast return on investment as well as lower total cost of IT ownership as it can be implemented within a matter of weeks, is easy to handle for users and can be maintained with minimal resources at the subsidiary.

With SAP’s international network of nearly 1,100 SAP Business One partners, subsidiaries can work with local partners who have in-depth knowledge of their customers’ individual situations. Local partners can provide service at eye-level, implement and maintain the solution as well as offer more than 250 add-on solutions for SAP Business One.

Otto Bock Chooses SAP Business One for Service Subsidiaries
In December 2005, Otto Bock, a German supplier of prosthetic devices and walking aids, selected SAP Business One for deployment across its service subsidiaries in 32 countries, including China, Denmark, Germany and the United States. With a pilot project for four subsidiaries currently under way in the United Kingdom, the first stage of the deployment will involve 400 users. The project is expected to reach 1,400 employees over time. SAP partner AZUR Ltd. is developing an extension to the enterprise management functionality of SAP Business One that will provide a unified view of patient information and replace paper forms. The extension will help reduce data entry errors, shorten processes and enable new analytical capabilities. All patient information will be available to every employee during the entire course of the workflow.

“We chose SAP Business One as an essential component of our enterprise strategy”, said Mike König, head of IT at Otto Bock. “With this decision we have access to over 40 country versions as well as the flexibility of system handling. One reason for our decision was also the tight collaboration between SAP and AZUR Ltd., which provides the industry solution extension which can be seamlessly integrated with SAP Business One.”

LORD Unites Global Affiliates
With its world headquarters in North Carolina, LORD Corporation has recently completed the deployment of SAP Business One at its operations in Japan, where 30 users are working with the solution. Designing and manufacturing specialty and general-purpose adhesives and coatings as well as systems to manage mechanical motion, control noise and vibration for transportation, aerospace and industrial applications, LORD selected SAP Business One as part of an effort to manage financial information more effectively on a global basis. LORD is currently deploying “be.as manufacturing add-on module,” a solution extension from the Germany-based SAP solution partner be.as. LORD’s implementation partner is IMG Americas, a subsidiary of IMG AG, a certified SAP partner since 1990, with global headquarters in St. Gallen, Switzerland.

Checkpoint Systems Chooses SAP Business One for Franchisees
Leveraging the open integration of SAP NetWeaver, Checkpoint Systems, a multi-national supplier and manufacturer of security solutions to the retail industry, is connecting its franchisees with its headquarters’ core SAP installation. Plans call for approximately 100 users across 75 franchisees in Europe to work with SAP Business One, providing a single system for centralized operations, reduced administrative efforts for franchisees and integrated data management from order processing to invoice and inventory management. At the moment, around 25 franchisees have already gone live with the product.

“We chose SAP Business One over competitive solutions because of the easy integration into our core SAP system based on SAP NetWeaver technology,” said Soenke Kuehl, worldwide vice president, Supply Chain, Checkpoint Systems. “Other advantages are very short project times and the fast and easy implementation of SAP Business One due to the preconfigured template and a very practical training concept. The individual franchisees can go live within only two days.”

KSB integrates Chinese Subsidiary with 90 Concurrent Users
In December 2004, KSB, a German manufacturer of pumps and valves, deployed SAP Business One at its subsidiary in Singapore, where 30 users are working with the solution. KSB was looking for a solution to support its strategy of intensive growth, help streamline group-wide communications and improve responsiveness to customers while standardizing the internal IT architecture. Based on its initial success in Singapore, KSB connected subsidiaries in Dubai, Hong Kong, Taiwan and Indonesia using SAP Business One. The latest expansion of the SAP footprint was for 90 concurrent users from KSB’s production subsidiary in Shanghai in December 2005. Future plans at KSB include rolling out the solution within the next 18 months in further countries in Asia as well as Eastern Europe, where KSB will make use of the capabilities of SAP Business One to integrate with other SAP solutions.

“Our project went live under budget and before schedule,” said Karsten Kreher, project lead at KSB AG. “SAP Business One provides us with an excellent tool for managing our sales operations. Now our subsidiaries are positioned to face the challenges of the market.”

SAP at CeBIT 2006
SAP’s main booth at CeBIT is in hall 4, stands D12/D28; SAP’s booth for public sector organizations is in hall 9, booth E37.

About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 32,000 customers in more than 120 countries run SAP® software—from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP business solutions help enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industries, including high tech, healthcare, retail, public sector and financial services. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at www.sap.com)

(*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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Jim Dever

SAP AG

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