GLOBAL NETWORK

Since 1996, the Company has been building a global research and development network, SAP Labs. There are now SAP Labs operations in Palo Alto, California; Tokyo, Japan; Bangalore, India; Sophia Antipolis, France; Sofia, Bulgaria; Montreal, Canada; Tel Aviv, Israel; and Shanghai, China. Together, SAP Labs locations represent nearly one-third of SAP's total development resources.

The presence of SAP Labs in these high-tech centers gives the Company access to the cream of developer talent and opens doors to synergies the world over. One major task of the SAP Labs is to identify new trends in technology, gathering knowledge and feeding it back to Walldorf to improve the Company's products for customers everywhere. SAP Labs are powerful engines of innovation within SAP. REGIONAL