French Government Selects SAP for Bellwether Transformation Initiative

French Government Replaces Oracle/PeopleSoft Legacy Systems with SAP Applications;

SAP® for Public Sector Solutions to Serve 25,000 Users Across All French Ministries by 2009

PARIS - April 04, 2006 - — SAP AG (NYSE: SAP) today announced that the French government has selected SAP for Public Sector solutions to enable its modernization efforts in support of a new constitutional bylaw for improved efficiency of budgetary expenditure. The government is harmonizing its financial, budgetary and accounting information systems on a single SAP platform, replacing all existing applications, including Oracle/PeopleSoft software, across all central ministries and their regional services.

Following careful consideration of solutions presented by SAP and competitors, including Oracle, the French government found SAP applications to demonstrate higher functional and technical quality. In particular, the government chose SAP applications based on the software’s stronger capabilities and suitability for supporting the administration’s “Chorus” program, a modernization effort toward implementing the country’s Constitutional Bylaw on Budget Acts, or Loi Organique relative aux Lois de Finances (LOLF). The bylaw is designed to make public spending more transparent and to improve performance measurement across all levels of public administration.

Adopting best management practices from SAP’s public sector solution portfolio, the modernization project is intended to create a new three-dimensional accounting system covering budgeting, fiscal year accounting and cost analysis. The deployment of SAP for Public Sector solutions on the SAP NetWeaver® platform is expected to serve up to 25,000 users by 2009.

“SAP is proud to be chosen as the catalyst for this transformation,” said Léo Apotheker, member of the executive board, SAP. “With SAP NetWeaver as the platform for collaboration, information availability and transparency across all levels of government, the SAP for Public Sector portfolio provides the best-suited solutions to enable innovation, higher public value at lower costs and a broad range of best practices in government accountability and performance management. As one of the most significant public sector transformation efforts in Europe, the SAP rollout for the French government stands to become a beacon and benchmark for governments and public organizations worldwide.”

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About SAP for Public Sector
SAP for Public Sector is a solution portfolio that combines mySAP™ Business Suite applications and tailored functionality to meet the unique demands of central, federal, state and local governments and other public organizations. With more than 1,050 customers in 70 countries worldwide, SAP is the leading provider of enterprise software solutions to the public sector. SAP for Public Sector provides a comprehensive set of tools to help organizations improve economic viability and increase process efficiency and transparency while better serving the needs of the public. Based on the open architecture of the SAP NetWeaver® platform, SAP for Public Sector is the number one enabler of public sector modernization initiatives, enabling agencies to work seamlessly with one another by integrating process flows for accounting, budgeting, funds management, procurement, constituent and personnel management. (Additional information at <http://www.sap.com/publicsector/>)

About SAP
SAP is the world’s leading provider of business software solutions*. Today, more than 32,000 customers in more than 120 countries run SAP® software—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 business solutions help enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industries, including high tech, healthcare, retail, public sector and financial services. 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 <http://www.sap.com>)

(*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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