SAP Leads Enterprise Software Market Worldwide

SAP Ranks #1 Worldwide in CRM, ERP and SCM Markets, According to Latest Reports from Industry Research Firm

WALLDORF, Germany - June 29, 2006 - SAP AG (NYSE: SAP) announced today that the company has expanded its worldwide leadership as the number one enterprise software vendor, based on market share numbers. Gartner Dataquest, a division of Gartner, Inc., the leading provider of research and analysis on global information technology, issued three reports on June 7th, June 8th and June 12th, 2006 analyzing the status of the worldwide enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM) market. Based on the new metric of total software revenue, SAP ranks number one in all three enterprise software markets. In addition, SAP now has the largest market share in the ERP - Enterprise Asset Management segment.

“SAP is thrilled to be recognized as the leader in market share across all ERP categories worldwide,” said Léo Apotheker, president of Customer Solutions and Operations and member of the executive board, SAP AG. “We believe it’s a testament to our ability to successfully execute against our product strategy, as well as how well we work with our customers to fulfill their current and future needs.”

For the first time, Gartner, Inc. calculated the market share for the worldwide enterprise software market segments based on the total software revenue metric to reflect the changes in the industry, such as open-source software (OSS), on-demand business models and new regulations.

CRM – SAP’s Integrated CRM strategy Continues to Strengthen its Leadership Role
According to Gartner, Inc., the worldwide CRM market enjoyed robust growth as total software revenues grew 13.7 percent. SAP enhanced its leadership position as the number one CRM worldwide market share holder with a year-over-year growth rate of 19.6 percent based on total software revenue.

SAP’s strategy focuses on delivering strong standard CRM functionality with deep industry processes (for example, trade promotion management for consumer products and intellectual property management for media) enabled through unique SAP front-to-back-office integration. Earlier this year, SAP further enhanced its CRM strategy by launching an on-demand offering that increases the target user base for the company’s CRM products. As the CRM market consolidated in 2005, SAP saw an increase in deals from organizations that had previously purchased best-of-breed CRM products.

ERP – SAP is Number One in Enterprise Asset Management
SAP now ranks first in all four of the ERP software segments, including financial management systems, human capital management, enterprise asset management and manufacturing operations, worldwide. SAP achieved the greatest breakthrough in the enterprise asset management segment. A 21.4 percent year-over-year growth catapulted SAP to the number one market share position in this particular market. SAP sees a strong customer adoption of mySAP™ ERP, the company’s flagship ERP application, with customers implementing or upgrading from previous releases at a fast pace.

SCM – Increasing Adoption of SOA
SAP expanded its position as the largest market share holder in the worldwide SCM market with a 25 percent year-over-year growth. Total software revenue for SCM applications grew 2.6 percent annually. The SCM market saw mergers, suite encroachment and technology advances in 2005.

SAP has invested heavily to compete successfully with the best-of-breed vendors in the areas of functionality, implementation and total cost of ownership. SCM 2005 market drivers include increased adoption of service-oriented architecture (SOA), which SAP believes underscores its leadership and vision for enterprise SOA; and SAP’s successful elevation of its SCM vision into its corporate message for all business applications from adaptive supply chains to adaptive business networks.

New Methodology Captures Changes in the Software Industry
Gartner, Inc., introduced total software revenues as a new metric for its worldwide enterprise software reports. The research house defines total software revenue as revenue generated from new licenses, updates, subscriptions and hosting, technical support and maintenance. Professional services and hardware are not included in total software revenue. In the past, the research firm had used software new license revenue as a metric for its reports.

For more information, please see the following Gartner Dataquest reports:

* Gartner Dataquest, Market Share: CRM Software, Worldwide, 2005, 8 June 2006, Authors: Sharon A. Mertz, Chris Pang and Yanna Dharmasthira.
* Gartner Dataquest, Market Share: ERP Software, Worldwide, 2005, 12 June 2006, Authors: Chad Eschinger, Chris Pang and Yanna Dharmasthira.
* Gartner Dataquest, Market Share: Supply Chain Management Software, Worldwide, 2005, 7 June 2006, Authors: Chad Eschinger, Chris Pang and Yanna Dharmasthira.

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.

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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