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SAP Announces 2000 First Quarter Results -- mySAP.com Momentum Continues in a Challenging Quarter.


     Business Editors

     WALLDORF, Germany--(BUSINESS WIRE)--April 19, 2000--SAP AG
(NYSE: SAP), the leading provider of inter-enterprise software
solutions, today announced its results for the quarter ended
March 31, 2000. In the first quarter of 2000, total revenue rose 10%
over the first quarter of 1999 to E1.18 billion (1999 Q1: E1.08
billion). Pre-tax profit in the quarter before charges for the
employee stock appreciation rights program (STAR) was up 114% to E334
million (1999 Q1: E156 million); pre-tax profit including STAR
decreased 45% to E95 million (1999 Q1: E172 million). Financial and
other non-operating income was E206 million (1999 Q1: E -2 million).
Net income for the quarter was down 43% to E56 million (1999 Q1: E98
million).
     "SAP was prepared for a challenging first quarter -- and we got
it. While we are satisfied with the numbers, we are committed to
moving even faster and executing even more effectively," remarked
Henning Kagermann, Co-Chairman and CEO of SAP AG. "Competition for
web-based products, particularly in the US, has been fierce and we
will continue to invest considerable resources to strengthen the
mySAP.com momentum. Looking forward, our overall pipeline is healthy
and we expect a stronger software sales activity in the second and
third quarters."

Continued Strength in Europe

     In the first quarter, revenues in the Europe, the Middle East and
Africa (EMEA) region increased 15% to E608 million (1999 Q1: E529
million). The Americas region decreased 3% to E436 million (1999 Q1:
E448 million) and in the Asia-Pacific region (APA), revenues were up
40% to E139 million (1999 Q1: E99 million).
     Product revenues in the quarter rose 21% to E742 million (1999
Q1: E615 million) including a 4% increase in software license revenue
to E369 million (1999 Q1: E355 million); mySAP.com contributed E80
million or 22% of license sales (1999 4Q: 16%). Of the total license
sales New Dimensions products comprised E68 million or 18% of license
revenues (1999 Q4: 11%).  Consulting revenues decreased 3% to E332
million (1999 Q1: E343 million) while training revenues slipped 14% to
E95 million (1999 Q1: E110 million).


Building on the mySAP.com Foundation

     Alongside many new developments on the product side (see `First
Quarter Highlights' below), SAP made several strategic moves in the
first quarter to accommodate the rapidly growing market for its
Internet offerings. In particular, SAP announced the formation of two
new subsidiaries to address the growing markets of business-to
business marketplaces and application hosting; the company launched a
global marketing campaign.
     The new marketplace company, SAPMarkets, will consolidate all of
the mySAP.com Marketplace efforts to provide customers with the
technology and cross company integration expertise they need to
rapidly bring marketplaces to fruition. The aim of SAPHosting, the new
applications service provider (ASP) company is to offer ASP services
from SAP and to provide support and quality benchmarks to the
expanding network of mySAP.com ASP and hosting partners. SAPHosting
will initially focus ist efforts in Europe.
     "SAP is building the Internet structure for business-to-business
collaboration which is the most complete solution available. In the
first quarter, we had almost 100 mySAP.com deals, which shows SAP's
focus on improving our customers' business performance," commented
Hasso Plattner, Co-Chairman and CEO of SAP AG and interim CEO of
SAPMarkets. "By forming separate businesses to address our growing and
changing markets, we have afforded ourselves the resources and
flexibility we need to maintain our market leadership."
     In March 2000, SAP launched a multi-million Euro print,
television and web-based mySAP.com marketing campaign to demonstrate
the unique advantages and ease of use which mySAP.com delivers to an
increasing number of non-R/3 users. The message "you can. it does."
has been well-received by the rapidly-expanding mySAP.com ecosystem.

First Quarter 2000 Highlights

Continuous success of mySAP.com:

     The momentum of mySAP.com continued in the first quarter.
New mySAP.com customers in the quarter include: in the US, eBay, State
of Arkansas; in Europe, Buderus, Eurotunnel, Hubwoo.com; in Asia/
Pacific, Kawasaki Heavy Industry and Sanyo Electric.

mySAP.com comprises the following four elements:

-- mySAP.com Workplace: is a role-based enterprise portal that
   provides single, unified Web-based access for users' needs in
   their business role. It empowers users to perform effectively
   in dynamic, fast-paced, market-driven work environments by
   putting the exact application, information and services at
   their fingertips through an interface that is easy to learn,
   tailor and use.

-- mySAP.com Business Applications: come in the e-commerce, Customer
   Relationship Management, Supply Chain Management, Business
   Intelligence, and Enterprise Resource Planning applications area.
   mySAP.com Business Applications are fully integrated between
   enterprises and between providers and end consumers.

-- mySAP.com Marketplaces: are business hubs on the Internet
   that provide an infrastructure for collaborative business.
   More than 5,600 companies have registered with the mySAP.com
   Marketplace. Together with Deutsche Bank SAP will jointly
   provide financial and trading services to facilitate
   collaborative electronic business based on the technology
   infrastructure of mySAP.com Marketplaces. Deutsche Bank and
   SAP also plan to jointly create and operate industry-specific
   marketplaces based on mySAP.com Marketplace technology. SAP
   and a group of leading global chemical companies announced
   that they will form an independent joint venture with the
   goal of creating the leading electronic marketplace for the
   chemical and pharmaceutical industries using mySAP.com
   e-business and marketplace technology. Danone and Nestle S.
   A., world leaders in the food industry, announced the
   creation of Europe's first Internet marketplace for
   e-procurement in the consumer goods sector. This marketplace
   is scheduled to go live in July this year and will be based
   on the mySAP.com e-business platform.

-- Application Hosting with mySAP.com: provides access to
   mySAP.com applications and solutions via networks. Companies
   of all industries and of various sizes are embracing the SAP
   hosting business model to take advantage of the lower cost of
   ownership and rapid deployment of Internet business
   solutions.

you can. it does.

     SAP launched a major global advertising campaign during the first
quarter. The campaign, which includes a strong mix of TV, print and
on-line media, is part of SAP's communication programme developed to
build mySAP.com into a powerful brand. The new tag line - "you can. it
does." - is designed to encapsulate the real empowerment provided to
both businesses and individuals through the use of mySAP.com and the
Internet. The campaign will run throughout 2000.

SAPMarkets

     SAP announced in March the formation of a new subsidiary -
SAPMarkets - dedicated to creating and powering globally
interconnected Business-to-Business marketplaces on the Internet.
Following the successful introduction of mySAP.com last year, this
move underlines a new quality in developing, marketing and operating
Internet-based marketplaces and providing collaborative business
solutions. The new company will operate globally with headquarters in
Palo Alto, California and is expected to open for business in May
2000.

CeBIT

     mySAP.com was the central theme for SAP at this year's CeBIT in
Hannover, the world's largest information technology trade fair. At
CeBIT, SAP announced the creation of a new company, SAPHosting, which
will be dedicated to the rapidly growing Internet application service
provider (ASP) and application hosting business.

-0-


First Quarter Key Figures

----------------------------------------------------------------------
                    Q1 2000             Q1 1999              % Change
----------------------------------------------------------------------
Revenues (E mill.)  1,183                1,076                    10

Income before taxes
 (E mill.)             95                  172                  - 45

Net profit (E mill.)   56                   98                  - 43

Headcount as of
 Mar. 31             22,298              20,406                    9

- in Germany
 (operational)        3,497               3,050                   15

----------------------------------------------------------------------
-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 "believe,"
"estimate," "intend," "may," "will," "expect," and "project" 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 "SEC"), including the Company's Annual Report on Form 20-F for
1999 filed with the SEC on April 7, 2000. 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

EDITOR'S NOTE - E = EURO DOLLAR

-0-



SAP GROUP
PRELIMINARY INCOME STATEMENT - First Quarter
(in E millions)

----------------------------------------------------------------------
                             2000           1999              D
----------------------------------------------------------------------

  Software revenue           369             355              4%
  Maintenance revenue        373             260             43%
Product revenue              742             615             21%
  Consulting revenue         332             343             -3%
  Training revenue            95             110            -14%
Service revenue              427             453             -6%
Other revenue                 14               8             75%
----------------------------------------------------------------------
Total revenue              1,183           1,076             10%
----------------------------------------------------------------------

Cost of product             -126             -97             30%
Cost of service             -366            -394             -7%
Research and development    -194            -140             39%
Sales and marketing         -288            -228             26%
General and administration   -74             -47             57%

Other income/expenses, net    -7             -12            -42%
----------------------------------------------------------------------
Total operating expense
 excl. STAR               -1,055            -918             15%
----------------------------------------------------------------------

 STAR expense               -239              16          -1594%
----------------------------------------------------------------------
Total operating expense
 incl. STAR               -1,294            -902             43%
----------------------------------------------------------------------

Operating income            -111             174           -164%
----------------------------------------------------------------------
Other non-operating
 income/expenses, net        -32              -6            433%
Financial income, net        238               4           5850%
----------------------------------------------------------------------
Income before income taxes    95             172            -45%
----------------------------------------------------------------------

Income taxes                 -38             -74            -49%
Minority interest             -1               0
----------------------------------------------------------------------
Net income                    56              98            -43%
----------------------------------------------------------------------

Basic earnings per share
 (in E)
----------------------------------------------------------------------
 Ordinary shares             0.53            0.92            -42%
 Preference shares           0.56            0.95            -41%

----------------------------------------------------------------------
DSO (in days)                 106             108
----------------------------------------------------------------------

Figures are reported according to US-GAAP.

-0-

SAP GROUP
PRELIMINARY CONSOLIDATED BALANCE SHEET - FIRST QUARTER
(in E millions)

ASSETS
----------------------------------------------------------------------
                                    03/31/2000         12/31/1999
----------------------------------------------------------------------
Intangible Assets                      122                120
----------------------------------------------------------------------
Property, plant and equipment          807                794
----------------------------------------------------------------------
Financial Assets                       455                610
----------------------------------------------------------------------
FIXED                                1,384              1,524
ASSETS

----------------------------------------------------------------------
Inventories/Accounts                 1,919              2,157
receivables
----------------------------------------------------------------------
Liquid Assets                        1,566                810
----------------------------------------------------------------------

CURRENT ASSETS                       3,485              2,967

----------------------------------------------------------------------

DEFERRED TAXES                         392                284
----------------------------------------------------------------------
PREPAID                                 88                 52
EXPENSES
----------------------------------------------------------------------
TOTAL                                5,349              4,827
ASSETS
----------------------------------------------------------------------

SHAREHOLDERS' EQUITY AND LIABILITIES
----------------------------------------------------------------------

SHAREHOLDERS'                        2,525              2,559
EQUITY
----------------------------------------------------------------------

MINORITY                                 9                  9
INTEREST
----------------------------------------------------------------------
RESERVES AND ACCRUED                 1,326              1,278
LIABILITIES
-----------------------------------------------------------------------

OTHER LIABILITIES                      621                671

----------------------------------------------------------------------
DEFERRED                               868                310
INCOME
----------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY AND
 LIABILITIES                         5,349              4,827
----------------------------------------------------------------------

Figures are reported according to US-GAAP.

-0-

     --30--eb/ny*

     CONTACT: Gundolf Moritz
              SAP AG
              +49-6227-7-44872
                  -or-
              David Lowy
              Taylor Rafferty, New York
              +1-212-889-4350
              Belinda Bishop
              Taylor Rafferty, London
              +44-20-7936-0400

     KEYWORD:  INTERNATIONAL EUROPE
     INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE SOFTWARE
EARNINGS
COPYRIGHT 2000 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:4EUGE
Date:Apr 19, 2000
Words:1853
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