WALLDORF, Germany - July 20, 1999- SAP AG (NYSE: SAP) today announced that its sales for the first half of 1999 grew 17% to €2.34 billion from €2.0 billion in the same period last year. Net income in the first half was down 4% to €240 million (1998: €250 million), while income before income taxes fell 5% to €420 million (1998: €441 million).

Second quarter revenues rose 13% to €1.26 billion (1998: €1.11 billion). Net income in the quarter decreased 7% to €142 million (1998: €152 million) and income before income taxes fell 7% to €248 million (1998: €268 million).

"Considering the tremendous impact of the Internet on the market for business software, we are satisfied with our first half performance" said Hasso Plattner, Co-Chairman and CEO of SAP AG, "We are well prepared for these changes and are moving quickly to seize the opportunities created by the Internet."

Strongest growth in Europe
The region comprising Europe, the Middle East and Africa (EMEA) showed the strongest revenue growth in the first half with an increase of 25% to €1.15 billion (1998: €920 million). In the Americas, revenues rose 11% to €969 million (1998: €872 million); at 1998 exchange rates, this rise would have amounted to 16%. Sales in the Asia Pacific (APA) region were up 5% to €214 million (1998: 204 million). If exchange rates had remained constant, the overall sales growth rate of 17% would have been 2 percentage points higher.

"We are particularly pleased with our performance in Europe in the first half," said Henning Kagermann, Co-Chairman and CEO of SAP AG. "We are confident that our increasing focus on customized solution projects and our comprehensive cost controls should enable us to achieve our 1999 targets."

Product revenues rose 4% to €1.35 billion (1998: €1.30 billion) in the first half and again amounted to the largest share of total sales. Product sales figures for the first half broke out as follows: software revenue, which consists of license sales and sales of new software releases was lower by 3% to €1.08 billion; service-related maintenance revenues grew 42% to €272 million. Consulting revenues in the first half showed even stronger growth, increasing 57 % to €741 million (1998: €471 million). Training revenues grew 9% to €216 million (1998: €199 million). Product revenues accounted for 58% of total sales, compared to 65% in the first half of 1998.

Kevin McKay, CEO and President of SAP America, said, "We expect momentum to continue to build into the second half of 1999 based upon the introduction of our mySAP.com offerings and increased demand for SAP's R/3 and New Dimension products as the year 2000 issue remits."

Strengthening market leadership with mySAP.com
Together with the release of its half year results, SAP has released significant news on its system mySAP.com.

"mySAP.com is the foundation for SAP to strengthen its market leadership on a long-term basis through an aggressive focus on the Internet," said Hasso Plattner, Co-Chairman and CEO of SAP AG, "Our customers are already profiting from the superior technology and business expertise embodied in SAP's solution packages. This knowledge will form the basis for our future growth.

Second-quarter highlights
Highlights from the second quarter include:

• The second version of the Business Information Warehouse (SAP BW) became available at the end of March. To date approximately 700 systems have been delivered worldwide. Roughly 10% of these customers are live with BW. Eastman Kodak, Pirelli Informatica and Mitsubishi Corporation are among the first customers deploying this business process analysis software.
• SAP Knowledge Warehouse, SAP's knowledge management software and training solution, has already been shipped to 350 customers. Version 4 of Knowledge Warehouse will presumably be available by mid September. Among SAP customers using the products are Compaq, John Deere and Pfleiderer.
• SAP shipped the new SAP Business-to-Business-Procurement (SAP B2B Procurement) Internet enabled solution at the end of March. Customers that have opted for SAP software to manage their Internet purchasing transactions include Lockheed Martin and Anheuser-Busch.
• SAP's APO - the solution for controlling and optimizing supply chains that became available at the end of 1998 – has now been sold to 190 customers worldwide. Wacker Siltronic and Eastman Chemical are among the first corporations to have gone live with the SAP Advanced Planner and Optimizer (SAP APO). The enhanced 2.0 version of SAP APO will start shipping in October.
• With the availability of the SAP Internet Pricing and Configurator, a key component for electronic commerce and customer relationships management, SAP has synchronized its Customer Relationship Management application with its comprehensive mySAP.com Internet strategy. First customers are already implementing CRM business scenarios among them Viega and Zeneca.

Key figures at a glance
SAP Group
(in €millions)

	1st half 1999	1st half 1998	Change	% Change
Revenues	2,336	1,996	+ 340	+ 17
Income before income taxes	420	441	- 21	- 5
Net income	240	250	- 10	- 4
Headcount (June 30)	20,880	16,976	+ 3,904	+ 23
- of which in Germany	8,275	6,805	+ 1,470	+ 22

Any statements contained in this documents 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 "believe," "estimate," "intend," "may," "will," "expect," and "project" and similar expressions as they relate to the Company are intended to identify such forward-looking statements. The Company 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 the Company’s future financial results are discussed more fully in the Company’s filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company’s Annual Report on Form 20-F for 1998 filed with the SEC on May 18, 1999. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

SAP AG preference and common shares are listed on the Frankfurt Stock Exchange as well as a number of other exchanges. In the US, SAP’s American Depositary Receipts (ADRs), each worth one-twelfth of a preference share, trade on the New York Stock Exchange under the symbol ‘SAP’. SAP is a component of the DAX, the index of 30 German blue chip companies.

Information on the SAP AG preference shares is available on Bloomberg under the symbol SAP3 GR, on Reuters under SAPG_p.F or DE and on Quotron under SAGVD.EU. Information on the SAP common shares is available on Bloomberg under the symbol SAP GR, on Reuters under SAPG.F and on Quotron under SAGR.EU. Additional information is available on SAP AG's home page: http://www.sap.com.

Consolidated Income Statements
2nd Quarter 1999
SAP Group
(in €millions)

			Q2 1999	Q2 1998	D
	Product revenue		736	726	1%
		Consulting revenue	398	262	52%
		Training revenue	106	107	-1%
	Service revenue		504	369	37%
	Other revenue		20	19	5%
Total revenue			1.260	1.114	13%
	Cost of product		-107	-79	35%
	Cost of service		-417	-305	37%
	Research and development		-170	-152	12%
	Sales and marketing		-278	-265	5%
	General and administration		-59	-53	11%
	Other income/expenses, net		-6	-4	50%
Total operating expense			-1.037	-858	21%
Operating income			223	256	-13%
Other non-operating income/
expenses, net			-7	7	-200%
Finance income, net			32	5	540%
Income before income taxes			248	268	-7%
Income taxes			-105	-116	-9%
Minority interest			-1	0	n.a.
Net income			142	152	-7%
DSO (in days)			108	102

Consolidated Income Statements

1st Half 1999
SAP Group
(in €millions)

			H1 1999	H1 1998	Change
	Product revenue		1.351	1.301	4%
		Consulting revenue	741	471	57%
		Training revenue	216	199	9%
	Service revenue		957	670	43%
	Other revenue		28	25	12%
Total revenue			2.336	1.996	17%
	Cost of product		-203	-156	30%
	Cost of service		-806	-568	42%
	Research and development		-308	-260	18%
	Sales and marketing		-503	-469	7%
	General and administration		-101	-101	0%
	Other income/expenses, net		-18	-16	13%
Total operating expense			-1.939	-1.570	24%
Operating income			397	426	-7%
Other non-operating income/
expenses, net			-13	7	-286%
Finance income, net			36	8	350%
Income before income taxes			420	441	-5%
Income taxes			-179	-191	-6%
Minority interest			-1	0	n.a.
Net income			240	250	-4%
DSO (in days)			108	102

Consolidated Balance Sheet
1st Half 1999 SAP Group
(in €millions)

ASSETS
	06/30/1999		12/31/1998
Intangible Assets	97		75
Property, plant and equipment	728		645
Financial Assets	263		184
FIXED ASSETS	1.088		904
Inventories/ Accounts receivable
and other assets	1.813		1.676
Liquid assets	654		670
CURRENT ASSETS	2.467		2.346
DEFERRED TAXES	225		114
PREPAID EXPENSES AND DEFERRED CHARGES	71		21
TOTAL ASSETS	3.851		3.385
SHAREHOLDERS' EQUITY AND LIABILITIES
	06/30/1999		12/31/1998
SHAREHOLDERS' EQUITY	1.968		1.818
MINORITY INTEREST	9		7
RESERVES AND ACCRUED LIABILITIES	657		653
OTHER LIABILITIES	678		600
DEFERRED INCOME	539		307
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES	3.851		3.385