U.S. Department of Defense Selects mySAP.com For Blanket Purchase Agreement; NAVAIR Upgrades to 33,000 Users.

Business/High Tech Editors

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

San Bernardino City Unified School District and Potomac Electric

Power Company Validate mySAP.com(R)as the E-Solution

for Public Services

SAP Public Services, Inc. today announced that the U.S. Department of Defense (DoD) is establishing a General Services Administration Federal Supply Service Blanket Purchase Agreement (BPA) for the mySAP.com(R) e-business platform as part of the DoD Enterprise Software Initiative.

In the spirit of this BPA, the Naval Air Systems Command (NAVAIR) is scheduled to sign a 33,000-user GSA Schedule delivery order. This upgrade will allow NAVAIR's integrated internal systems to employ mySAP(TM) Supply Chain Management (mySAP SCM) and mySAP(TM) Customer Relationship Management (mySAP CRM). This announcement was made at SAPPHIRE(R), SAP's international e-business conference being held in Orlando, Fla., June 12-15.

When finalized, this BPA will allow all agencies within the DoD to access the full suite of mySAP.com solutions including supply chain management, customer relationship management, e-procurement and enterprise portals. There will be no additional commitment by the DoD to purchase software from SAP under the BPA; however, the BPA will provide a streamlined vehicle for DoD customers to access SAP(R) solutions. The development of a BPA between the DoD and SAP Public Services follows the successful completion of a NAVAIR pilot with KPMG Consulting, LLC to implement SAP enterprise solutions. The pilot was part of a project to examine the program management function of the Navy. NAVAIR completed the pilot in April 2001, effectively employing SAP solutions for financial management, acquisition, asset tracking and human resources.

Dennis Distler, NAVAIR program manager, and Kathy Steele, NAVAIR's deputy chief information officer for IT Planning and Investment, are scheduled to attend the signing of the agreement at SAPPHIRE 2001. NAVAIR plans to sign the enterprise agreement in order to significantly increase its purchasing power and reduce software licensing costs by negotiating as a command rather than as individual units.

Established in 1998, the DoD Enterprise Software Initiative leverages the Department of Defense's aggregate buying power and offers choice to customers when purchasing commercial software solutions. Through the DoD ESI, DoD components are able to achieve significant cost savings. Information on the DoD ESI is available at http://www.don-imit.navy.mil/esi.

"Signing this agreement at SAPPHIRE will be a highlight for SAP Public Services," said Tom Shirk, president of SAP Public Services. "The DoD recognizes SAP's value proposition of replacing legacy systems and integrating business processes in order to increase return on investment. These agreements validate SAP's complete solution specifically designed to serve all public service institutions."

SAP demonstrates strong leadership in developing and providing e-solutions for public service providers through new customer announcements in the government, education and utilities verticals. In addition to the scheduled DoD agreement, the San Bernardino City Unified School District (SBCUSD) and Potomac Electric Power Company (Pepco) have selected mySAP.com to support their e-business initiatives.

SBCUSD, one of the largest school districts in California, selected mySAP.com to improve staff efficiency, provide real-time information to aid management in the decision-making process, and reduce overall administrative costs. During the first phase, ea consulting, a certified SAP Hosting Partner, will implement SAP purchasing, business intelligence, financials and human resources solutions tied together with SAP Portals' Enterprise Collaboration Portal. SBCUSD will build a solid infrastructure internally and then engage SAP e-procurement, supply chain and customer relationship management solutions. SAP empowers organizations to provide a streamlined, interactive environment, improving educational administration through collaborative communication among all stakeholders.

Pepco, a provider of regulated utility operations, competitive energy and telecommunications products and services to approximately 1 million customers in the mid-Atlantic region, selected mySAP SCM and mySAP(TM) E-Procurement to support Pepco's future e-business and multi-company supply chain strategies. SAP implementation will replace several stand-alone legacy systems and completely integrate all supply chain activities at Pepco.

About SAP Public Services, Inc.

SAP Public Services, Inc. is a subsidiary of SAP America, Inc., which is a subsidiary of SAP AG, the world's leading provider of e-business software solutions. With mySAP.com(R), SAP integrates its extensive business and industry expertise into a comprehensive platform of e-business solutions, services and technology. The mySAP.com e-business platform is a family of solutions and services that empower employees, customers and business partners to collaborate successfully anywhere, any time. SAP Public Services enables public sector organizations to fully engage their employees, customers and partners to drive the new Internet economy. mySAP.com allows organizations from government, utilities, education and healthcare organizations to harness the power of the Internet to work smarter, better and faster by optimizing resources, managing internal and external customer relationships, sharing virtual information, increasing productivity and serving constituent needs. SAP Public Services has more than 250 employees and is headquartered in the Ronald Reagan Building in Washington, D.C. More information about the company is available at http://www.sap.com/usa/publicservices.

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.

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