SAP Announces 1999 Preliminary Results -- Solid financial performance; mySAP.com established as key strategic e-business initiative.

     Business Editors

     WALLDORF, Germany--(BUSINESS WIRE)--Jan. 24, 2000--SAP AG
(NYSE: SAP), the leading provider of inter-enterprise software
solutions, today announced solid results for 1999. Sales grew 18% over
1998 to E5.11 billion (1998: E4.32 billion). Pre-tax profit in 1999
before charges for the employee stock appreciation rights program
(STAR) was up 18% to E1.12 billion (1998: E948 million); pre-tax
profit including STAR grew 5% to E981 million (1998: E932 million).
Net income for the year increased 14% to E602 million (1998:
E527 million). On the basis of an increased number of shares issued
(an average of 104.6 million in 1999 compared with an average of 104.4
million in 1998), earnings per share excluding charges for the STAR
program rose 28% to E6.58 (1998: E5.14); earnings per share including
STAR were up 14% to E5.76 (1998: E5.05).

Exceptionally Strong Fourth Quarter

     SAP's 1999 results were driven by a strong fourth quarter in
which sales rose 30% to E1.65 billion over the same period in 1998
(E1.27 billion). Product revenues in the quarter were up 43% to E1.13
billion (1998: E793 million) due mostly to an increase in license
revenue of 45% to E811 million (1998: E559 million). In the quarter,
mySAP.com products contributed E129 million to license sales, most of
which was booked in the month of December. In the future, SAP will
disclose mySAP.com license sales. Consulting revenues grew 12% to E408
million (1998: E364 million) and training revenues decreased 14% to
E89 million (1998: E104 million).
     In the fourth quarter, revenues in the Europe, the Middle East
and Africa (EMEA) sales region increased 46% to E785 million (1998:
E539 million), the Americas region rose 12% to E683 million (1998:
E609 million), and in the Asia-Pacific region (APA) revenues were up
52% to E167 million (1998: E110 million).  Pre-tax profits excluding
charges for the STAR program grew 121% to E602 million (1998: E271
million); including STAR, pre-tax profit rose 79% to E482 million
(1998: E270 million).  Net income for the quarter increased 109% to
E317 million (1998: E152 million).

Solid Full Year

     For 1999, product sales increased 14% to E3.09 billion (1998:
E2.72 billion).  Of this total, license revenue rose 2% to E1.93
billion (1998: E1.90 billion).  Consulting revenues grew 38% to
E1.55 billion (1998: E1.12 billion) and training revenue decreased
4% to E395 million (1998: E412 million).
     Breaking out geographic sales for the year: the EMEA region rose
29% to E2.41 billion (1998: E1.87 billion), the Americas region
increased 7% to E2.14 billion (1998: E2.00 billion), and the APA
region increased 27% to E506 million (1998: E397 million).  Costs
rose 26% in 1999 to E4.31 billion (1998: E3.42 billion); pre-tax
margin excluding STAR was 22% and after STAR 19%.  A lower than
expected overall tax rate of 38.5% is anticipated, as opposed to 43.2%
in 1998.
     Hasso Plattner, Co-Chairman and CEO of SAP AG commented, &uot;In
1999, SAP delivered a comprehensive redesign of its product line,
completed the transition to the internet and achieved a strong rebound
in sales - all exceptional achievements in a challenging year.&uot;
     &uot;Our powerful results in the fourth quarter and a healthy
pipeline give us an excellent platform to continue SAP's product sales
growth into 2000,&uot; said Henning Kagermann, Co-Chairman and CEO of SAP
AG, &uot;For 2000, we are anticipating that product revenues will grow
faster than service revenues leading to an improved operating margin,
before the impact of costs associated with the STAR program.&uot;
     In the first part of 2000, SAP expects that service revenue
growth will probably be slower than seen in the past. The company also
anticipates additional personnel and marketing costs associated with
mySAP.com efforts, making it likely that cost growth before STAR in
the first quarter will be a few percentage points higher than revenue
growth.
     The company confirmed its expectation that revenues for 2001 will
be approximately twice those achieved in 1998.

Launch of mySAP.com

     Successfully building on its newly designed internet software
solutions that make SAP products easier to learn, tailor and use, SAP
delivered mySAP.com in September. mySAP.com provides an open,
collaborative e-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.
     &uot;By leveraging our deep customer relationships, we're going to
make mySAP.com a central place for companies to work and collaborate
in an open electronic environment,&uot; commented Kevin McKay, CEO of SAP
America, &uot;This is a natural extension of our ability to deliver better
business solutions. When businesses look to harness the efficiencies
and business opportunities offered by the internet, SAP will remain
the first choice.&uot;

New Employees and Stock Option Program

     In 1999, SAP continued to build out its infrastructure by adding
new personnel. At the end of 1999, global headcount totaled 21,699, an
increase of 12% over the end of 1998. The most additions were made to
service and support, whose staff increased 14% to 10,957.
     As proposed in December, SAP shareholders approved the
introduction of a stock option and convertible bond program named the
SAP 2000 Long Term Incentive Plan (LTI Plan). The LTI plan will
attract, retain and motivate senior managers and top performers to
grow the value of the enterprise and to secure their commitment to the
company. The new plan will augment the existing stock-based
compensation package (STAR). In accordance with US GAAP, costs
associated with the 1999 STAR program are estimated to be over ?300
million in the year 2000 based upon a recent SAP stock price of ?700,
with approximately E150 million of these costs to be reflected into
the first quarter.


1999 Highlights

     After announcing its Internet strategy in May, SAP delivered
mySAP.com on-schedule in September: mySAP.com provides an open
collaborative e-business solutions environment of personalized
solutions on demand. mySAP.com is comprised of the following four
elements:

-- The mySAP.com Marketplace, a business-community portal serving as
   the central hub that enables bilateral and multilateral collaboration
   between and among enterprises. The mySAP.com Marketplace opened its
   doors to business in October 1999. There are now more than 46,000
   registered Marketplace users. More than 3,200 companies representing
   over 19 industries have registered with the mySAP.com Marketplace. In
   December, SAP announced a global vertical Marketplace for chemical and
   pharmaceutical companies which will go live second quarter of
   2000. In December, Neoforma.com, a healthcare industry e-commerce
   provider, licensed the mySAP.com marketplace to create a
   marketplace for the healthcare industry. Statoil, the world's
   second largest supplier of crude oil, and SAP announced in
   January to co-develop the first open global online marketplace
   for the oil and gas industry.

-- The mySAP.com Workplace, a business-oriented desktop portal
   customized for each user in a company. The Workplace provides
   employees with single-screen access to all the functions and data
   they need to do their job.


-- The mySAP.com e-business solutions: collaborative, role-based
   solutions for business intelligence, supply chain management,
   e-commerce, and customer relationship management that are fully
   integrated between enterprises and between providers and end
   consumers.

-- Application Hosting with mySAP.com, access to applications via
   networks, enabling cost-effective access to mySAP.com solutions
   within a very short timeframe. Over 8,000 users in North America
   have embraced Application Hosting with mySAP.com since the
   initiative was introduced in January 1999. Customers using
   Application Hosting with mySAP.com include REZsolutions Inc.,
   Hirsh Industries and Visioneer.

Key e-business solutions gain momentum; available through
mySAP.com:

--   More than 1,100 installations to date for Business Intelligence
     with mySAP.com: The SAP Business Information Warehouse (SAP BW)
     is the analytical SAP software solution that supports management
     decision-making processes. Customers that use SAP BW include
     Clariant and Kimberly-Clark Corporation.

--   More than 350 installations for Supply Chain Management with
     mySAP.com: The SAP Advanced Planner and Optimizer (SAP APO)
     solution enables collaborative network optimization across the
     extended supply chain. Among the customers that have opted for
     the SAP APO solution are Goodyear and Lufthansa.

--   More than 400 installations for Customer Relationship Management
     with mySAP.com: CRM with mySAP.com enables customer value
     management through personalized interactions and collaborative
     e-business. Companies that are gaining an integrative view of
     their customers through mySAP.com CRM scenarios include
     Bertelsmann AG and Dow Corning.

--   Nearly 400 installations for e-commerce with mySAP.com: The
     mySAP.com e-commerce solutions support one-step business where
     real-time multiparty transactions can take place with a single
     click directly or via the mySAP.com Marketplace. Customers that
     have opted for SAP B2B Procurement, the mySAP.com buying solution
     to manage their Internet purchasing transactions include Visteon
     and Volvo.

     Huge number of attendees at international user conferences: SAP
again attracted large numbers of customers, prospects and partners to
its international SAPPHIRE events, with over 11,000 people attending
SAPPHIRE in Nice and Singapore and over 18,000 people attending both
SAPPHIRE'99, the annual SAP Americas customer conference, and SAP
TechEd'99, a conference for software developers that was held the
previous week. Users' overwhelming response demonstrates the
exceptionally high levels of acceptance of SAP products and further
illustrates the long-term relationships SAP enjoys with its customers.

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1999 Preliminary results

                                      1999         1998       % Change

Revenues (E mill.)                   5,110         4,316           18
Income before taxes (E mill.)          981           932            5
Net profit (E mill.)                   602           527           14
Earnings per share (E)                5.76          5.05           14
Headcount as of Dec. 31             21,699        19,308           12
 - in Germany                        8,912         7,679           16

-0-

     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 &uot;believe,&uot;
&uot;estimate,&uot; &uot;intend,&uot; &uot;may,&uot; &uot;will,&uot;
&uot;expect,&uot; and &uot;project&uot; and
similar expressions as they relate to the Company are intended to
identify such forward-looking statements. The Company 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 the
Company's future financial results are discussed more fully in the
Company's filings with the U.S. Securities and Exchange Commission
(the &uot;SEC&uot;), including the Company's Annual Report on Form 20-F for
1998 filed with the SEC on May 18, 1999. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of their dates
     SAP AG preference and common shares are listed on the Frankfurt
Stock Exchange as well as a number of other exchanges. In the US,
SAP's American Depositary Receipts (ADRs), each worth one-twelfth of a
preference share, trade on the New York Stock Exchange under the
symbol `SAP'. SAP is a component of the DAX, the index of 30 German
blue chip companies.
     Information on the SAP AG preference shares is available on
Bloomberg under the symbol SAP3 GR, on Reuters under SAPG_p.F or DE
and on Quotron under SAGVD.EU. Information on the SAP common shares is
available on Bloomberg under the symbol SAP GR, on Reuters under
SAPG.F and on Quotron under SAGR.EU. Additional information is
available on SAP AG's home page: http://www.sap.com

(Tables to follow)


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*T

1999 Revenues by Quarter (in E millions)

                  Q1 1999      Q2 1999    Q3 1999   Q4 1999   1999
----------------------------------------------------------------------
Total revenues     1,076        1,260      1,123     1,651    5,110
----------------------------------------------------------------------
Product revenues     615          736        611     1,132    3,094
----------------------------------------------------------------------
Consulting revenues  343          398        398       408    1,547
----------------------------------------------------------------------
Training revenues    110          106         90        89      395
----------------------------------------------------------------------
Other revenues         8           20         24        22       74
----------------------------------------------------------------------
Pretax profit        172          248         79       482      981
----------------------------------------------------------------------

Fourth Quarter Revenues Comparison 1999 / 1998 (in E millions)

                   Q4 1999      Q4 1998      Change    % Change
----------------------------------------------------------------------
Total revenues      1,651        1,273        378           30
----------------------------------------------------------------------
Product revenues    1,132          793        339           43
----------------------------------------------------------------------
Consulting revenues   408          364         44           12
----------------------------------------------------------------------
Training revenues      89          104        -15          -14
----------------------------------------------------------------------
Other revenues         22           12         10           83
----------------------------------------------------------------------
Pretax profit         482          270        212           79
----------------------------------------------------------------------

Employees Worldwide at Year End

                 December 31, 1999   December 31, 1998    % Change
----------------------------------------------------------------------
Group                 21,699            19,308                 12
----------------------------------------------------------------------
EMEA                  13,074            10,960                 19
----------------------------------------------------------------------
 - Germany             8,912             7,580                 18
----------------------------------------------------------------------
Americas               6,005             5,984                  0
----------------------------------------------------------------------
APA                    2,620             2,364                 11
----------------------------------------------------------------------
Research &Development 5,403             4,818                 12
----------------------------------------------------------------------
Service &Support     10,957             9,570                 14
----------------------------------------------------------------------
Sales/Marketing        3,809             3,503                  9
----------------------------------------------------------------------

SAP AG
PRELIMINARY INCOME STATEMENT - YEAR
(in E millions)



----------------------------------------------------------------------
                           1999           1998           Delta
----------------------------------------------------------------------
Product revenue            3,094          2,720           14%
 Consulting revenue        1,547          1,122           38%
 Training revenue            395            412           -4%
 Service revenue           1,942          1,534           27%
  Other revenue               74             62           19%
----------------------------------------------------------------------
Total revenue              5,110          4,316           18%
----------------------------------------------------------------------

Cost of product             -527           -369           43%
 Cost of service          -1,622         -1,256           29%
 Research and development   -747           -573           30%
 Sales and marketing      -1,133           -965           17%
 General and
  administration            -259           -208           25%
 Other income/expenses,
  net                        -25            -44          -43%
----------------------------------------------------------------------
Total operating expense   -4,313         -3,415           26%
----------------------------------------------------------------------

Operating income             797            901          -12%
----------------------------------------------------------------------

Other non-operating income/
 expenses, net               -51             17          -400%
Financial income, net        235             14          1579%
----------------------------------------------------------------------
Income before income
 taxes                       981            932             5%
----------------------------------------------------------------------
Income taxes                -378           -403            -6%
Minority interest             -1             -2           -50%
----------------------------------------------------------------------
Net income                   602            527            14%
----------------------------------------------------------------------
DSO (in days)                103            104
----------------------------------------------------------------------

Figures are reported according to US-GAAP.

SAP AG
PRELIMINARY INCOME STATEMENT - Fourth Quarter
(in E millions)


----------------------------------------------------------------------
                            1999            1998           Delta
----------------------------------------------------------------------

Product revenue            1,132            793             43%
 Consulting revenue          408            364             12%
 Training revenue             89            104            -14%
 Service revenue             497            468              6%
 Other revenue                22             12             83%
----------------------------------------------------------------------
Total revenue              1,651          1,273             30%
----------------------------------------------------------------------
Cost of product             -221           -124             78%
Cost of service             -415           -376             10%
Research and development    -266           -170             56%
Sales and marketing         -343           -251             37%
General and administration   -91            -54             69%
Other income/expenses, net     3            -25           -112%
----------------------------------------------------------------------
Total operating expense   -1,333         -1,000             33%
----------------------------------------------------------------------
Operating income             318            273             16%
----------------------------------------------------------------------

Other non-operating income/
expenses, net                -32             -6             433%
Financial income, net        196              3            6433%
----------------------------------------------------------------------
Income before income
 taxes                       482            270              79%
----------------------------------------------------------------------
Income taxes                -166           -116              43%
Minority interest              1             -2            -150%
----------------------------------------------------------------------
Net income                   317            152             109%
----------------------------------------------------------------------
DSO (in days)                103            104
----------------------------------------------------------------------

Figures are reported according to US-GAAP.

SAP GROUP
PRELIMINARY CONSOLIDATED BALANCE SHEET
(in E millions)

ASSETS
----------------------------------------------------------------------
                          12/31/1999             12/31/1998
----------------------------------------------------------------------
Intangible Assets            120                     75
----------------------------------------------------------------------
Property, plant and
 equipment                   794                    645
----------------------------------------------------------------------
Financial Assets             609                    184

----------------------------------------------------------------------
FIXED ASSETS               1,523                    904
----------------------------------------------------------------------
Inventories/ Accounts
 receivable and other
 assets                    2,102                  1,676
----------------------------------------------------------------------
Liquid assets                810                    670

----------------------------------------------------------------------
CURRENT ASSETS             2,912                  2,346
----------------------------------------------------------------------
DEFERRED TAXES               317                    182
----------------------------------------------------------------------
PREPAID EXPENSES AND DEFERRED
 CHARGES                      57                     21

----------------------------------------------------------------------
TOTAL ASSETS               4,809                  3,453
----------------------------------------------------------------------


SHAREHOLDERS' EQUITY AND
 LIABILITIES
----------------------------------------------------------------------
                         12/31/1999             12/31/1998
----------------------------------------------------------------------
SHAREHOLDERS' EQUITY       2,559                  1,818
----------------------------------------------------------------------
MINORITY INTEREST              9                      7
----------------------------------------------------------------------
RESERVES AND ACCRUED
LIABILITIES                1,265                    721
----------------------------------------------------------------------
OTHER LIABILITIES            666                    600
----------------------------------------------------------------------
DEFERRED INCOME              310                    307

----------------------------------------------------------------------
TOTAL SHAREHOLDER'S EQUITY AND
LIABILITIES                4,809                  3,453
----------------------------------------------------------------------

Figures are reported according to US-GAAP.

-0-

     --30--eb/ny*

     CONTACT: Gundolf Moritz
              SAP AG
              011-49-6227-7-44872
                    -or-
              James P. Prout
              Taylor Rafferty Associates
              212-889-4350

     KEYWORD:  INTERNATIONAL EUROPE
     INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE SOFTWARE
EARNINGS