SAP Extends Human Capital Management Market Leadership with Over 10,000 Customers

Analyst Reports Confirm: SAP Holds Top Spot in Human Capital Management (HCM) Software Market

mySAP™ ERP HCM Application Helps Maximize Workforce Potential Across Multiple Industries Worldwide

CHICAGO - October 05, 2006 - Continuing its ongoing momentum within the human capital management (HCM) applications market, SAP AG (NYSE: SAP) today cemented its market leadership position by announcing the accumulation of more than 10,000 HCM customers in 110 countries worldwide. International lifestyle company HUGO BOSS, global mining company Rio Tinto and Orange County (Florida) Public Schools join a number of recent customers that have selected mySAP™ ERP HCM to maximize workforce potential and automate human resources processes, enabling SAP to reach this landmark goal. The announcement was made at the Human Resource (HR) Technology Conference and Exposition, being held in Chicago, Illinois, October 4 – 6.

The 10,000th customer milestone follows a recent Gartner Dataquest report (“Market Share: ERP Software, Worldwide, 2005,” June 12, 2006) that names SAP as the number one software vendor in the HCM market. In addition to this achievement, SAP is recognized as a leader in the Forrester Wave™: “HR Management Systems — Multinational Enterprises, Q3 ’06.” See related press release, titled “SAP Recognized as a Leader in Human Resource Management Systems.”

Forward-looking organizations are actively confronting prevalent trends such as building and retaining an efficient, functional workforce, identifying and developing high-potential employees, and assessing the impact of an aging workforce and potential talent shortages. At the same time, these organizations need to provide high-quality, cost-effective HR services. SAP delivers the applications and technology that enable organizations to implement strategies to meet these needs—such as advanced talent management capabilities, enabling customers to attract, hire and quickly onboard qualified candidates; educate and develop their current workforce; and influence performance through the right mix of compensation, benefits and career development. mySAP ERP HCM further enables customers to construct HR shared services centers for automating and standardizing HR processes through a centralized delivery channel or shared-services organization, providing high-quality services at a lower cost. Built-in workforce analytics reinforce decision-making for executives, HR professionals and line managers through enhanced reporting and analysis, enabling organizations to predict human capital demands and accurately track workforce costs.

“As large and midsize organizations grow their operations and expand their workforces, they strive to tighten organizational control while improving employee performance and engagement,” said James Holincheck, Research VP, Gartner. “In the competitive HCM market, effective solutions must deliver business process improvements, help develop and retain key talent, align the workforce with overall business goals, and be easy to use for employees and managers in order to achieve rapid uptake and results.”

HUGO BOSS Uses Talent Management to Be “Employer of Choice”
The lifestyle company HUGO BOSS selected a modern business application to facilitate and optimize the work of managers in HR and other departments. HUGO BOSS went live with SAP E-Recruiting in mid-2005. Using HUGO BOSS’s career portal, applicants can read job advertisements and register in the company’s talent pool. The company now has transparent, standardized processes, expends much less administrative effort and can perform real talent relationship management.

Rio Tinto Mines Employee Talent with mySAP ERP HCM
Rio Tinto, a world leader in finding, mining and processing mineral resources, is implementing mySAP ERP HCM globally, including talent management functionality such as enterprise learning management, recruitment and succession management to identify and develop the human capability required to meet their current and future business needs.

“With mySAP ERP HCM, we can identify and track existing high-potential employees as possible successors for key positions and with the SAP Learning Solution we ensure that our employees have the correct qualifications to help us fulfill the aims of the company,” said Mike Ryan, global process team lead for “Manage People” initiative, Rio Tinto. “By replacing our HR legacy systems with the SAP solution we are able to streamline our recruiting and talent management processes and apply these processes consistently across all of our businesses. We are now in a position to better leverage the talents of our employees, our company’s main asset.”

Orange County Public Schools Support Hiring Cycle with E-Recruiting
“Orange County Public Schools hires more than 2,000 employees each year and needed a solution that would change the way we do business, improving how the administration recruits talented teachers and hires qualified staff,” said Charles Thompson, chief information officer, Orange County Public Schools, Florida. “As an existing SAP customer, Orange County turned to the latest version of mySAP ERP because its e-recruiting capabilities will help automate steps in the recruiting process, giving the school district visibility into candidates and allowing hiring managers to post job descriptions.”

“SAP has earned the trust of over 10,000 organizations all over the world that run the mySAP ERP HCM application, confirming SAP’s number-one position and proving our ability to enable superior process innovation and operational flexibility for human capital management,” said Claus Heinrich, member of SAP’s executive board in charge of Human Resources, Processes and Production. “SAP recently upgraded its internal HR system to the latest version of mySAP ERP HCM to achieve the full benefits of the software’s automated processes as well as new functional improvements such as talent management.”

About SAP
SAP is the world’s leading provider of business software*. Today, more than 34,600 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 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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