Southco Selects SAP to Enable Lean Manufacturing Strategy

Midsize Manufacturer Selects mySAP(TM) Business Suite in Competitive Evaluation Based on Superior Industry Expertise, Global Capabilities, Customer Commitment and Vendor Stability

CONCORDVILLE, Pa., May 8 /PRNewswire-FirstCall/ -- SAP America, Inc., a subsidiary of SAP AG (NYSE: SAP), today announced that Southco, a privately held, global provider of engineered access hardware solutions and applications for a broad spectrum of industries, has selected SAP to enable its lean manufacturing strategy and allow it to compete with agility as it expands global operations. Southco chose SAP over Oracle after an extensive evaluation process which included visits to customer sites in China, Hong Kong, the United States and the United Kingdom, based on SAP's stability as industry leader, superior capabilities for managing end-to-end business processes such as order to cash, and ability to support global operations in emerging markets.

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With rapidly expanding global operations and customers in the marine, automotive, truck, off-highway/construction, RV/caravan, consumer electronics, computer hardware, and industrial enclosures industries, Southco manages more than 100,000 stock keeping units (SKUs) for 70,000 customers in 65 countries. The company sought an enterprise resource planning (ERP) solution to support its lean six sigma initiatives, increase managerial visibility and maintain responsiveness as it competes against smaller local and regional providers across the world.

"We are on track to double in size over the next five years, and as one of the few players in our industry with an aggressive global expansion strategy, we need a partner that can support us in international markets, with the confidence in a solution that can scale with our growth," said Brian McNeill, president & CEO, Southco. "Our team really hit the pavement in the evaluation process, and other global vendors couldn't measure up with the same combination of solid solution road map, proven success at customer sites, and the ability to provide effective solutions and support them with training and skilled workers in markets like China."

A 2006 study of midsize enterprise growth strategies commissioned by SAP from the Economist Intelligence Unit highlighted international expansion as a key focus for growth among businesses worldwide. In the study, midsize enterprises cited the threat of competitive advantages -- such as the ability to execute on changes in strategy, maintain deeper customer relationships and sustain robust innovation -- eroding as they grow. These respondents see IT as critical to their ability to expand and retain flexibility while they are growing. (See Feb. 8, 2006 press release, titled "Increasing Power of Larger Rivals Threatens to Stifle Midmarket Growth").

Southco will implement applications from mySAP(TM) Business Suite to support lean processes for managing product life cycles, import, export and trade. As part of the integrated business management platform, the company also will deploy mySAP(TM) Customer Relationship Management to support its sophisticated client model and present a single face to the customer across its entire global operations.

"Southco is a great example of the world of new markets and opportunities opening up to midsize enterprises and how technology will be the equalizer that allows them to compete with agility against both smaller and larger enterprises," said Bill McDermott, president & CEO, SAP Americas. "We are pleased to add Southco to our expanding base of midsize customers and look forward to helping them manage global operations and achieve aggressive goals for lean operations and growth."

Next Major Events: SAPPHIRE(R) '06 Orlando and SAPPHIRE(R) '06 Paris

Join SAP and its growing ecosystem of partners to discover how co-innovation and open technologies are enabling customers to improve business processes, go to market faster and outthink and out-execute the competition. Learn first-hand how organizations of all sizes and industries around the world are using SAP(R) applications to accelerate innovation and energize growth at SAPPHIRE(R) '06, SAP's international customer conference, being held in Orlando, Florida, May 16-18, and in Paris, France, May 30-June 1. For more information, please visit www.sap.com/sapphire.

This year, SAP and the Americas' SAP Users' Group (ASUG) are co-locating their premier events in Orlando, where the 2006 ASUG Annual Conference takes place May 14-17.

About SAP

SAP is the world's leading provider of business software*. Today, more than 33,200 customers in more than 120 countries run SAP(R) applications -- from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver(R) platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. 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 http://www.sap.com)

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

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 "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" 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 ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

NOTE: SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

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    United States Only:  1-800-872-1SAP (1-800-872-1727)

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CONTACT: Jim Dever, +1-610-661-2161, Email Contact, EDT, or SAP
Press Office, +49 (6227) 7-46315, CET, or +1-610-661-3200, EDT; or
Email Contact, both of SAP AG; or Torrey Fazen of Burson-Marsteller,
+1-617-764-0146, or Email Contact, EDT, for SAP AG

Web site: http://www.sap.com//


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