SAP Expands Presence in Brazil with New Global Service Center

May 23, 2006

SAP Global Service Center in Latin America to Meet Growing Local and Global Demand

SAO LEOPOLDO, Brazil - Expanding its presence in Brazil, SAP AG (NYSE: SAP) today announced the opening of a new SAP Global Service Center in São Leopoldo, state of Rio Grande do Sul, where SAP plans to add as many as 80 new employees by the end of 2006. Located on the “Unisinos” university campus, the new facility will focus on custom development and localization services for customers in Latin and North America.

The SAP Global Service Center is the latest addition to SAP’s Brazilian operations, which started in 1995 and at present comprise more than 450 employees supporting more than 600 customers. São Leopoldo was chosen as the site of the new center based on a number of factors: the city’s excellent infrastructure, cost competitiveness, proximity to higher educational institutions such as the facility host, University of Vale do Rio dos Sinos (Unisinos), and the strong support of the region through local government initiatives.

“I would like to express, on behalf of the state of Rio Grande do Sul and its scientific and technological community, our deep satisfaction with the decision made by SAP to deploy its SAP Global Service Center in our state,” said Germano Rigotto, governor, state of Rio Grande do Sul. “It is a significant portion of, and a priority for, our public policies to develop technology centers and increasingly qualify our human resources in the corresponding areas. Therefore, the presence of a large global enterprise represents a sign that we are on the right track, and it will be an encouragement for the state of Rio Grande do Sul to become the focal point of other ventures.”

Leveraging Global Network
The São Leopoldo site also serves as part of a worldwide network of nine SAP Global Service Center locations, the largest of which are in China, Germany, Hungary, India and Japan.

“The new SAP Global Service Center will support our long-term global growth plans and localization efforts and is an important affirmation of our commitment to Brazil and the Americas region,” said Gerhard Oswald, member of the executive board, SAP AG. “SAP Custom Development and our Globalization Services team will benefit from the world-class IT and development professionals available in this region, and we are pleased to collaborate with Brazil’s most prestigious universities and academic institutions to serve customers across the Americas and the rest of the world.”

Boosting Global Competitiveness
SAP Custom Development helps individual customers seize new market opportunities and dynamically respond to new business challenges by developing unique, customer-specific solutions on the SAP NetWeaver® platform. Globalization services enable companies to run their systems simultaneously anywhere in the world. These services support both global processes and local business practices and laws.

“The SAP Custom Development and Globalization Services organizations play an essential role at SAP, as innovation and global competitiveness are paramount for the success of our customers and for SAP itself,” said José Duarte, regional managing director of SAP Latin America. “This new SAP Global Service Center location marks an expansion for SAP in the Latin American market and contributes to the mission of supporting customers on a local and global basis. A strong university infrastructure that provides high-quality development resources, coupled with the region’s high standard of living, fluency in English and Spanish and a competitive cost structure makes São Leopoldo a very attractive location for SAP.”

About SAP
SAP is the world’s leading provider of business software*. Today, more than 33,200 customers in more than 120 countries run SAP® applications—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 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 http://www.sap.com)

(*) 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.

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Contact Information

Monica Panelli

SAP AG

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