Reva Secures Cisco Systems and SAP Ventures Investments

Funding accelerates RFID network integration effort

CHELMSFORD, Mass., October 4, 2006 - Reva Systems, an emerging leader among radio frequency identification (RFID) network infrastructure providers, today announced $13.5M in second-round venture funding that includes a capital contribution and technology standards collaboration with Cisco Systems, Inc.; a capital investment and strategic relationship with SAP Ventures, a division of SAP AG; and follow-on investments from Reva’s original venture backers and individual investors, including North Bridge Venture Partners and Charles River Ventures.

Today’s announcement brings Reva’s total funding to $20M including the original Series A financing in April, 2004. The investments will fund Reva’s growth in a time of intensifying global RFID market expansion. The company is well-positioned with a robust RFID appliance to satisfy network management and scalability challenges that the RFID community now recognizes as the key to widespread RFID deployment.

“Reva’s approach to RFID system management through a network appliance is being embraced because it’s easier to deploy and maintain, especially in large-scale applications that sprawl across multiple facilities and locations,” said Ashley Stephenson, Reva chairman and co-founder. “It is an approach that will become the standard model for managing readers and collecting data across any RFID implementation.” Data from RFID readers is delivered to business applications with location and workflow awareness combined with data formatting and buffering capabilities. As the volume of RFID-generated data begins to inundate enterprise networks, Enterprise Applications such as those from SAP stand to gain from the increased reliability and streamlined management of Reva’s scalable RFID network solutions.

Reva’s approach and its product development is aligned with Cisco’s expectation of the proliferation of RFID and the resulting demand for innovative solutions and network management to support RFID deployments.

Reva is leading industry standards committees to help define network-to-reader protocols and other standards that will streamline RFID network integration, and its approach is becoming the practical model for managing readers and collecting data across any RFID implementation.

“Reva Systems is already recognized as an industry leader in the development of infrastructure solutions and standards necessary for RFID to be a global success,” said Tom Schuster, Reva’s chief executive officer. “This additional funding and the alliances from which it springs is part of a larger industry movement bringing RFID into operational and scalable deployments. These investments show that some of the practical changes we’ve fostered are being recognized by the networking community.”

SAP Partnership Highlights Business Potential

Reva was one of the first RFID vendors to deliver a certified integration with SAP’s Enterprise Services Auto-ID Infrastructure (SAP AII), announced in September, 2005. Today’s announcement builds upon that integration with capital funding that will further develop RFID business potential in the industry.

“Reva’s market opportunity is tremendous, and SAP Ventures is investing in a very promising company and a proven management team with visionary thinking and strong industry ties,” said Jennifer Scholze, Investment Partner, SAP Ventures. “Reva’s solution simplifies a complex and confusing environment, which will help to drive adoption and enable RFID as a force driving change across most industries.”

ABI Research RFID and Contactless practice director, Michael J. Liard, said today’s announcements indicate that Reva is positioning itself for category leadership in an RFID arena that relies upon seamless intelligent integration with existing network infrastructure and back-end business systems.

“Reva recognizes the opportunity to improve system performance by controlling networks of readers” Liard said. “This fits with Cisco’s vision of the importance of a unified wired and wireless network, and it also enables a vast amount of RFID data to be brought into the SAP system in a way that allows SAP to design and implement scalable RFID installations. So the announcement is a win-win across multiple network layers, setting the stage for RFID growth that can satisfy real business needs.”

About Reva Systems

Reva Systems develops RFID network infrastructure products that enable customers to rapidly deploy scalable solutions in any environment. Reva’s standards-based Tag Acquisition Network (TAN) architecture and Tag Acquisition Processor (TAP) products lead the industry with improved system performance, manageability and security. Reva products are deployed globally by enterprises using RFID readers from multiple vendors to enable scalable, repeatable and reliable enterprise RFID solutions. Reva was founded in 2004 and is headquartered in Chelmsford, Mass. For more information, visit www.revasystems.com.

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.

Reva, Reva Systems, and Tag Acquisition Processor are registered trademarks of Reva Systems Corporation. All other trademarks or registered trademarks are the property of their respective owners.

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Cisco Systems, Inc.

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