SAP Introduces World-Class Channel Program for Global Partner Network Serving Small and Midsize Businesses

SAP PartnerEdge™ Channel Partner Program Provides Powerful Engine for SAP Partners to Grow Their SMB Business, Targets Partners of Competing Vendors with Special Invitation

BOSTON, Mass. - May 18, 2005 - SAP AG (NYSE: SAP) today announced a next-generation channel program for its global partner network as part of its strategy to expand its applications software business with small and midsize companies. The new SAP PartnerEdge™ Channel Partner Program is a multilevel program that will provide enhanced infrastructure and business-enabling support to allow success and profitability for resellers, ISVs and other partners who market, develop, sell and implement SAP® solutions for the growing market segment. As part of the announcement, SAP also issued a special invitation to partners of competing vendors to join the new program at preferred status. Announced today at SAPPHIRE® ’05, SAP’s international customer conference being held in Boston, Massachusetts, May 17 - 19, the program will be introduced regionally around the world in partner events throughout the year.

The SAP PartnerEdge Channel Partner Program is a significant investment in channel resources and represents SAP’s increasing focus toward building out its partner ecosystem, a core component of its business strategy.

“The new program will make it easier for partners to do business with SAP and provides the foundation to drive volume sales and grow our customer base among small and midsize businesses,” said Donna Troy, senior vice president, Global SMB, SAP. “SAP PartnerEdge is the result of extensive consultation with our partners as well as deep experience with channel best practices. Most importantly, this program will support our customers by ensuring high-quality channel partners that are focused on customer satisfaction and customer success. We are focused on long-term customer and partner retention.”

Distinct Program Based on Channel Understanding and Expertise
Designed to address market dynamics and offer equal opportunities for partners of all sizes and types, SAP PartnerEdge will utilize a unique system of Value Points to recognize and reward partners for their competency and performance. Unlike other channel programs, SAP PartnerEdge Channel Partner Program will recognize partners not only for sales transactions but also for capability-building activities such as training and customer satisfaction. Additionally, its distinct focus on rewarding solution development activities recognizes the importance of SAP’s partner ecosystem in building integrated applications and extensions upon SAP’s SMB solutions, mySAP™ All-in-One and SAP® Business One. With program elements exceeding those currently seen in the industry, the program will provide a transparent, reliable infrastructure that is scalable and flexible to meet partners’ needs.

“Our business requires a stable, dependable vendor that understands both business solutions and channel programs and is responsive to our demands,” said Cees Hamers, director Business Innovation at Getronics PinkRoccade, an SAP partner providing SMB solutions in the Netherlands. “SAP’s new channel program offers three things we need most in a vendor relationship: predictability, profitability and extensive business support.”

Three Levels and Special Invitation for Partners of Competing Vendors
Under the program, partners will earn SAP PartnerEdge Value Points to be promoted up the program’s levels of “Associate,” “Silver” and “Gold.” Business enablement resources and benefits will include a combination of market development funds, pricing differentiation, branding benefits, access to sales and marketing tools and SAP technical resources—apportioned to partners by program level.

In recognition of uncertainty in the partner community from mergers among vendors, SAP is also extending a special invitation to channel partners of competing vendors. Under the offer, partners that have demonstrated superior capabilities in the marketplace with other application vendors may qualify to enter the program and be promoted to gold or silver status once the program is fully available in their geography.

Tools to Help Partners Succeed
Providing a fast and efficient go-to-market approach and fostering interaction among partners, SAP PartnerEdge Channel Partner Program will deliver a series of new enablement tools over the course of the year. The SAP PartnerEdge™ Channel Partner Solution Network, an online collaboration tool cataloguing the selection of industry-specific solutions and add-on functionality from SAP’s network of solution development partners, will help other partners easily find solutions, share information and make connections to expand market reach and fulfill wide-ranging customer needs. In addition, the program’s new e-learning infrastructure will provide partners with sales and technical training accessible via the Internet.

Built on industry-leading technology from SAP, the SAP PartnerEdge™ Channel Program Relationship Management System will offer a streamlined and efficient way for partners to manage their business with SAP. To make it easier for partners to find information and access resources, the program’s enhanced online portal will offer easy navigation and comprehensive content. Additionally, ongoing partner incentive programs, such as “Drive to Win,” will reward channel partners for success in selling mySAP All-in-One and SAP Business One.