P&G Enters Strategic Relationship With SAP for Global IT Transformation

Global Enterprise Agreement Will Drive Scale and Innovation

WALLDORF, Germany and CINCINNATI - SAP AG (NYSE: SAP) today announced that the Procter and Gamble Company (P&G) has signed a global enterprise agreement (GEA) with SAP in order to create a tighter relationship for collaboration on solution innovation, development and standardization. P&G will work with SAP to leverage combined industry expertise and SAP’s leading product offerings to help create a scalable, standardized global IT landscape.

By entering a GEA, SAP will focus on:

* Leveraging SAP products to drive business process innovation and enable P&G growth.
* Partnering with P&G to lower the total cost of P&G’s IT landscape.
* Creating a more standardized and integrated IT landscape.
* Improving the scalability and predictability of core SAP® solutions.
* Driving value across the P&G business network.

The agreement will accelerate the worldwide roll out of end-to-end business solutions leveraging SAP enterprise software.

“We are looking forward to leveraging the global enterprise agreement with SAP to step-change innovation in business services and to enhance the efficiency of our core business operations,” said Filippo Passerini, president of Global Business Services and CIO, P&G. “We see this relationship as highly strategic, creating value both for SAP and P&G.”

A P&G software partner since 1989, SAP has supported core business processes such as finance and supply chain for the company. The GEA includes software, software maintenance, strategic software developments, ‘maximum attention’ support and high-profile consulting services.

This agreement extends SAP’s position as a leader in providing comprehensive enterprise software for the consumer goods industry. The ability to adapt to shifting global market conditions, collaborate with trading partners and innovate to meet consumer demands is vital to companies as they strive for market share and greater profitability in the industry, which constantly faces rising costs, increased global competition and lengthened supply chains.

“P&G’s extended commitment to SAP as its strategic business partner is a testament to SAP’s continued leadership and innovation in the dynamic consumer products industry,” said Bill McDermott, member of the executive board, president and CEO, Global Field Operations, SAP AG. “We are pleased to add P&G to our respected list of GEA customers, demonstrating the value SAP solutions bring to the world’s largest and best companies.”

About P&G
Three billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers®, Tide®, Ariel®, Duracell®, Olay®, Gillette®, and Braun®. The P&G community consists of 138,000 employees working in over 80 countries worldwide.

About P&G’s Global Business Services Organization
P&G’s Global Business Services Organization is a global shared services organization which provides more than 85 employee and business services to P&G employees. Powered by P&G people and a network of industry-leading partners, GBS services and innovations help P&G employees collaborate more effectively, get products to market faster, and make smarter, real-time business decisions. Day in, day out, touching the lives of P&G people and consumers around the globe.

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 76,000 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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