SAP and Palm Announce Global Technology Alliance; Market Leaders Deliver Wireless Business Solutions Enabled by Palm Handhelds and mySAP Mobile Business at SAPPHIRE Orlando.

Business/High-Tech Editors

SAPPHIRE 2001

ORLANDO, Fla.--(BUSINESS WIRE)--June 13, 2001

SAP (NYSE:SAP) and Palm, Inc. (Nasdaq:PALM) today announced a global technology agreement that will extend the reach of mySAP.com(R) e-business solutions to mobile users through Palm(TM) handheld computers.

The two companies agree to jointly sell this solution to enterprises, and to develop a comprehensive SAP and Palm end-to-end enterprise mobility solution on the Palm OS(R). The combined strength of Palm and SAP will enable businesses to take advantage of new mobile opportunities and reduce operational costs by leveraging their investment in SAP(R) applications through the integration of mobile workers' Palm handhelds. Using mySAP.com solutions on Palm handhelds, mobile workers will be able to access enterprise portals, customer relationship management, supply chain management, business intelligence and other e-business applications. The announcement was made at SAPPHIRE(R), SAP's international e-business conference being held in Orlando, Fla., June 12-15.

This collaboration among leaders promises benefits to customers of both companies as they take mobile business a step further. This global technology alliance involves cooperative sales and marketing and paves the way for shared development and beta testing of applications between the two companies.

Palm and mySAP(TM) Mobile Business are showcasing Palm VIIx wireless handhelds by providing them to SAPPHIRE Orlando attendees, preloaded with online surveys plus mySAP Mobile Business, event scheduling and live messaging applications. As a result, with more than 8,000 attendees, SAPPHIRE 2001 Orlando is the largest company-sponsored, wireless-enabled e-business conference in the world. Palm Chief Executive Officer Carl Yankowski is a featured speaker at SAPPHIRE 2001 Orlando today, June 13, with a presentation titled "CEO Perspective: Winning With Mobile Business."

"This collaboration provides businesses with an unrivaled opportunity to realize their wireless initiatives to maximize employee productivity," said Peter Zencke, member of the executive board of SAP AG. "With the added flexibility and power of mySAP Mobile Business, SAP and Palm customers now have world-class mobile technology and e-business applications."

This agreement is an important building block of Palm's strategy to serve large businesses, moving the company into the mainstream of enterprises immediately as a partner of a world leader of e-business solutions with a wide range of mobile scenarios reaching the users on the world's most popular mobile computing platform. With mySAP Mobile Business, employees will have access to the right resources and will be able to work more effectively than ever before.

For nearly 30 years, SAP has proven to be the world leader in delivering the widest range of e-business technology solutions to it customers. Palm is recognized as the world leader in delivering mobile and wireless computing solutions, with a more than 75 percent worldwide OS market share according to International Data Corp.(1)

"The pairing of SAP and Palm will bring enterprise customers a sought-after level of mobile capability," said Kevin Burden, an analyst at IDC. "We see a great deal of market potential for solutions that combine handheld technology with critical corporate applications and expect that enterprises will realize the gains in productivity and tangible returns on investments."

"We share a common vision with SAP -- that providing people with mobile and wireless access to corporate information will enable them to be more productive and effective," said Carl Yankowski, chief executive officer at Palm. "Together, we are fulfilling the promise of access to mission-critical corporate information on the go."

Mobilizing Businesses With mySAP.com and Palm

mySAP Mobile Business extends the reach of mySAP.com beyond desktop PCs and wire-bound networks. Employees and business partners can tap into collaborative business solutions outside the bounds of a traditional office, leading to increased productivity and decreased costs. By leveraging Palm devices with mySAP Mobile Business solutions, users benefit from the ability to take immediate and appropriate action whenever something important happens that affects the enterprise, whether from a meeting, a remote sales or warehouse site, or an airport terminal. Now sales, service and maintenance and other workers have access to more mobile SAP functionality than ever before and can conduct business in real time whether they are in purchasing, creating sales orders or making available-to-promise forecasts. mySAP Mobile Business is available today and runs of a variety of mobile devices.

About Palm

Palm, Inc. is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers, according to IDC (December 2000). Based on the Palm OS(R) platform, Palm's handheld solutions allow people to carry and access their most critical information with them wherever they go. Palm(TM) handhelds address the needs of individuals, enterprises and educational institutions through thousands of application solutions.

The Palm OS platform is also the foundation for products from Palm's licensees and strategic partners, such as Franklin Covey, HandEra (formerly TRG), Handspring, IBM, Kyocera, Sony and Symbol Technologies. Platform licensees also include Nokia and Samsung. The Palm Economy is a growing global community of industry-leading licensees, world-class OEM customers, and approximately 155,000 innovative developers and solution providers that have registered to develop solutions based on the Palm OS platform. Palm went public on March 2, 2000. Its stock is traded on the Nasdaq national market under the symbol PALM. More information is available at http://www.palm.com.

About SAP

SAP is the world's leading provider of e-business software solutions. Through the mySAP.com(R) e-business platform, 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 13,500 companies in over 120 countries run more than 30,000 installations of SAP(R) 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." (Additional information at http://www.sap.com)

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 2000 filed with the SEC on March 28, 2001. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

(1)IDC, "The Battle at Hand: The Smart Handheld Devices Market Forecast & Analysis 2000-04," December 2000, published March 2001.

Copyright (c) 2001 SAP AG

SAP, the SAP logo, mySAP.com, mySAP and all other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. Palm OS is a registered trademark and Palm and Palm Powered are trademarks of Palm, Inc. or its subsidiaries. Other product or service names mentioned herein are the trademarks of their respective owners.