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SAP Strengthens Leadership in Analytic Applications Market with Acquisition of Pilot Software


SAP Continues to Deliver on Its Commitment to Broaden Its Analytic Offerings

WALLDORF, Germany - February 20, 2007 - Addressing C-level executive requirements for comprehensive analytic applications for performance management, SAP AG (NYSE: SAP) today announced the acquisition of Pilot Software, a privately-held company specializing in strategy management software. With this “tuck-in” acquisition, SAP is adding a critical piece to its portfolio of analytic applications and furthering its commitment to provide C-level executives with the tools necessary for effective performance management by fostering alignment across their organizations. By aligning strategy with execution, organizations are able to improve corporate performance, accelerate management decision-making, facilitate collaboration and turn information into value.

Founded in 2002, Pilot Software has more than 150 customers worldwide utilizing its strategy management solutions across a variety of industries including financial services, public sector, retail and many others. Pilot’s flagship product, PilotWorks, helps organizations empower their employees to effectively execute on strategies by aligning the three cornerstones of strategy management — goals, initiatives and metrics. Additionally, PilotWorks addresses executive requirements around managing goals, initiatives and metrics and codifying strategies to make them relevant to the daily business processes of information workers. The PilotWorks product will be integrated with SAP applications and built on the SAP NetWeaver® platform, allowing SAP customers to leverage their current investments in SAP solutions to gain new business value.

“Analytic applications that help organizations manage their performance effectively represent a strategic area of investment for SAP as we continue to expand our leadership in this market,” said Doug Merritt, executive vice president and general manager, Suite Optimization, SAP. “With the acquisition of Pilot Software, we are providing an advanced system for defining and managing strategies that is integrated with the business processes of information workers. By providing contextually-relevant information to employees in a highly collaborative user experience, we are making strategy relevant to every employee in a company, thus bringing immediate value to a strong cross-section of our customer base.”

Leveraging analytics to improve performance management has been among the top priorities of senior executives in the last five years and is an area in which SAP continues to broaden its portfolio and further strengthen its leadership position in the analytic applications market. With SAP’s analytic applications, C-level executives can make the most meaningful, confident decisions about their businesses by optimizing core business processes critical to their industries to deliver high performance. More critically, C-level executives can assure that the strategies codified in SAP’s analytic applications are translated into execution by their employees through tight integration with SAP’s core business applications such as enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM). Designed around Web 2.0 technologies, analytic applications from SAP enable information workers to leverage their collective intelligence and work collaboratively to bridge the gap between strategy and execution.

“Pilot Software has had a strong focus on customer success, and now with the PilotWorks strategy management software becoming an integral part of SAP’s analytic offerings, organizations are empowered to achieve successful alignment across their organizations and achieve their performance objectives,” said Jonathan D. Becher, CEO and president, Pilot Software. “This is an exciting time for Pilot Software and its customers who will gain immediate value from the breadth of SAP’s portfolio.”

The transaction with Pilot Software is continuing evidence of the SAP strategy to use “fill-in” acquisitions to add to its broad solution offering by gaining specific technologies and capabilities that meet the needs of its customers, within industries or across industries, while maintaining its successful track record of organic growth.

Headquartered in Mountain View, California, Pilot Software provides solutions to customers around the world. While integration plans are still being finalized, SAP said it intended to continue operations in these offices and that Pilot Software employees would become part of the worldwide network of SAP Labs. The acquisition was completed on February 14, 2007. Terms of the transaction were not disclosed.

About SAP
SAP is the world’s leading provider of business software*. Today, more than 38,000 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. 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

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

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 “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” 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 (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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