Swiss Army Brands Sharpens Business Processes with SAP

Global Consumer Goods Company Selects SAP® Solutions to Support Product Line Expansion

SHELTON, Conn. - March 21, 2006 - SAP AG (NYSE: SAP) today announced that Swiss Army Brands, Inc., distributor of Swiss Army timepieces and Victorinox multi-tools, cutlery, travel gear and apparel, has selected SAP® solutions to optimize business processes and drive the expansion of its business lines. After comprehensive evaluations of several vendors, the distributor decided to retire its Oracle/JD Edwards legacy system and turned to SAP to enable faster, more informed decisions while supporting the unique requirements of the various Victorinox Swiss Army product lines. Specifically, the integrated SAP® Apparel and Footwear (SAP AFS) application will enable the growing company to implement global strategies, ensure consistent quality and react quickly to customer demands.

In the apparel industry, businesses need to react within days or even hours to changes in consumer behavior and customer demand for convenience, choice and value. SAP AFS features a flexible master-data structure that represents sizes, colors and styles at the stock keeping unit (SKU) level and gives planners up-to-the minute visibility into daily activities. By integrating data across the supply chain, the SAP application will enable the company to improve on-shelf availability.

“SAP enables small and midsize companies such as ours to adopt the same modern, best-in-class software and business processes that have historically not been available to us due to cost,” said Tom Hennigan, senior vice president and chief operating officer, Swiss Army Brands, Inc. “We view the implementation of SAP as essential for us to provide our customers with the same service levels that much larger brands provide.”

Swiss Army Brands will leverage SAP solutions to integrate its global distribution operations, provide a platform for growth, transform its supply chain and standardize information on an enterprise level. Incompatible legacy systems, coupled with the need to take advantage of new technologies to reduce costs and improve planning and efficiency, prompted the company to select SAP. Swiss Army Brands will leverage SAP applications and the SAP NetWeaver™ platform to enable smooth system integration across the organization’s distribution facilities, which will help streamline operations and improve financial management controls.

Under the agreement, Swiss Army Brands will implement a full range of SAP solutions including enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM) in a phased rollout for approximately 200 users.

“Swiss Army Brands joins the expanding list of companies that have recognized the need to optimize their business processes for operational success,” said Bill McDermott, president and CEO, SAP Americas. “We are pleased that companies with their sights set on the future choose SAP to deliver solutions that can get up and running today and help ensure their future.”

About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 32,000 customers in more than 120 countries run SAP® software—from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP business solutions help enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industries, including high tech, healthcare, retail, public sector and financial services. 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 www.sap.com)

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

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