SAP Unveils Solution for Energy Management

SAP Industry Value Network Collaboration Results in Enhanced Functionality in SAP® Environmental Compliance Application to Enable Better Management, Measurement and Consumption of Energy

WALLDORF, Germany - July 30, 2008 - SAP AG (NYSE: SAP) today announced availability of a new solution enabling companies to more effectively measure, report and consume energy. Rising energy costs and the desire to reduce environmental impact have driven companies to seek tools enabling them to better aggregate data related to energy consumption for simplified reporting, environmental compliance and usage reduction. In response, the Industry Value Network group for chemicals worked together to develop enterprise energy management capabilities within the SAP® Environmental Compliance application. The release of this solution demonstrates SAP’s ongoing commitment to delivering solutions to customers that enable a rapid return on investment and the implementation of sustainable business practices.

Identifying the need for streamlined emissions management and environmental compliance, the Industry Value Network group for chemicals set out to create a solution that would not only meet the needs of chemicals manufacturers, but can be easily applied to manufacturers in many industries. The combined strength of the SAP® Manufacturing Integration and Intelligence (SAP MII) application with OSIsoft’s PI solution and the SAP Environmental Compliance application developed with TechniData resulted in the enterprise energy management solution. The solution enables companies to gather information on the use of energy, in all its forms, throughout the enterprise, identify areas for energy reduction, monitor the implementation of energy excellence projects, and make the results available throughout the enterprise.

“Energy costs have demanded that electricity, gas and other utilities must be considered as part of the cost of the product,” said Dr. Patrick Kennedy, CEO and founder, OSIsoft. “Our customers have been starting to combine real time and event data from our PI product, and business data from SAP to determine where they stand and then, interactively, how to lower the usage of these resources. In many cases, these projects have resulted in significant and sustainable reduction of operating costs. In the current economic climate, customers are finding that the only projects that can affect the bottom line in the near term are those where information drives the savings. We are pleased to collaborate with our partners SAP and TechniData to focus on giving our customers an energy management offering for the entire enterprise that will help them achieve substantial reductions in the cost of their products as well as reduced CO2 emissions.”

“Through the use of its energy and emissions management capabilities, SAP Environmental Compliance allows corporations to monitor and reduce energy use, and identify further opportunities to implement energy conservation projects, resulting in lower operating costs and greater benefits to the environment,” said Jürgen Schwab, chairman and chief executive officer, TechniData AG.

Business solutions that tap into existing technology to enable improved energy consumption and rapid compliance with regulatory requirements are increasingly important. Carbon dioxide (CO2) makes up a significant percentage of total greenhouse gases, with the largest proportion of CO2 generated through energy consumption. With this in mind, the reduction of energy usage can reduce greenhouse gases, positively affecting the environment. Improved monitoring of energy consumption enables decision making that can ultimately reduce emissions and save costs along with the environment. Globally, increased legislation has been created to place requirements on the reduction of emissions. As an example, in California, greenhouse gas emissions are required to be reduced to below-1990 levels by 2010. In New York City, carbon emissions must be reduced by 30 percent by 2030, and the European Union has a common target to reduce emissions by 2010 to 6 percent below the emissions levels of 1990.

The new enterprise energy management solution takes advantage of enterprise service-oriented architecture and the SAP NetWeaver® technology platform to integrate the OSIsoft Real-time Performance Management solution along with the SAP Environmental Compliance application. The solution is globally available as enhanced functionality in the SAP Environmental Compliance application.

“We are delighted to see this innovative use of the Industry Value Network in addressing our customers’ needs with respect to energy management and the environment,” said Franz Hero, vice president, chemistry industry business unit, SAP AG. “SAP, TechniData and OSIsoft are delivering a collaborative solution that not only provides benefit in lowering the cost of operations, but leads to a positive impact on the environment. The SAP Environmental Compliance application with its enhanced functions in enterprise energy management greatly benefits our customers and the environment.”

About SAP
SAP is the world’s leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With approximately 75,000 customers (includes customers from the acquisition of Business Objects) in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” (For more information, visit www.sap.com)

(*) SAP defines business software as comprising enterprise resource planning and related applications.

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