Full-Year 2005 Software Revenue Growth Expected to Exceed Company Guidance
Fourth Quarter 2005 Software Revenues Expected to Increase 18% to €1,180 Million
Full-Year Total Revenue Expected to Increase 13% to €8.5 Billion

WALLDORF – January 10, 2006 - SAP AG (NYSE: SAP) announced today that after a preliminary review of its 2005 fourth quarter results, it expects full-year 2005 software revenues to be approximately €2,780 million, representing an increase of 18% (15% at constant currencies1) compared to full-year 2004 software revenues of €2,361 million. The expected 2005 software revenue growth of 18% exceeds the Company’s previously published guidance of a range of 12% - 14% growth.

Fourth quarter software revenues are expected to be approximately €1,180 million, representing an increase of 18% (12% at constant currencies1) compared to fourth quarter 2004 software revenues of €1,003 million. Based on these preliminary software revenue results, the Company expects its worldwide peer group2 share to be 63% on a rolling four quarter basis at the end of the fourth quarter of 2005, which represents a gain of three percentage points compared to the third quarter of 2005 and a gain of eight percentage points compared to the fourth quarter of 2004

In the U.S., software revenues for the fourth quarter of 2005 are expected to increase by 35% (21% at constant currencies1) to €315 million compared to the fourth quarter of 2004. The Americas region, which includes the U.S., Canada and Latin America, is expected to report software revenues of €424 million for the fourth quarter of 2005, representing an increase of 33% (18% at constant currencies1) compared to the fourth quarter of 2004. In the EMEA (Europe, Middle East and Africa) region, fourth quarter 2005 software revenues are expected to increase 8% (7% at constant currencies1) to €625 million. Fourth quarter 2005 software revenues in Germany are expected to increase 2% to €238 million. In the APA (Asia/Pacific) region, fourth quarter 2005 software revenues are expected to increase by 25% (18% at constant currencies1) to €131 million. Fourth quarter 2005 software revenues in Japan are expected to increase 9% (10% at constant currencies1) to €49 million.

Total revenues for the fourth quarter of 2005 are expected to be approximately €2.75 billion, which is an increase of 15% (9% at constant currencies1) compared to €2.40 billion reported in the same period last year. Total revenues for the full-year 2005 are expected to be approximately €8.5 billion, which is an increase of 13% (12% at constant currencies1) compared to €7.5 billion reported for 2004.

On the basis of these figures, SAP expects its 2005 pro forma operating margin to be at the high end of its previously published 2005 pro forma operating margin guidance of an increase in a range of 0.0 to 0.5 percentage points. The 2005 pro forma operating margin can be reconciled to the operating margin by adjusting operating income for stock-based compensation (approximately €46 million) and acquisition-related charges (approximately €33 million). The Company also expects 2005 pro forma earnings per share to be at the high end of the range of its previously published 2005 pro forma earnings per share guidance of €4.85 to €4.95 per share.

SAP will provide further details of its 2005 preliminary results and outlook for the full-year 2006 on January 25.