India’s Largest Bank Chooses SAP to Streamline Human Capital Management Worldwide

State Bank of India Selects mySAP™ ERP to Drive Human Resource Management Processes Supporting 370,000 Employees and Retirees

MUMBAI, India and PARIS, France - May 30, 2006 - May 30, 2006 — SAP AG (NYSE: SAP) today announced that the State Bank of India (SBI), India’s largest commercial bank, selected mySAP™ ERP to automate and seamlessly integrate its human capital management (HCM) processes across State Bank Group, part of the bank’s efforts to transform its operations and prepare for future growth. The enterprise resource planning (ERP) application from SAP would serve State Bank Group’s global strength of more than 370,000 employees and retirees, making it one of the largest HCM implementations in the banking industry globally. The announcement was made at SAPPHIRE® ’06, SAP’s international customer conference, being held in Paris, France, May 30 – June 1.

Founded in 1806, State Bank of India is India’s largest commercial bank and a trend setter in the Indian banking sector. SBI is the largest bank in India in terms of market capitalization, deposits, advances and profits. With more than 9,000 branches and more than 205,000 employees in over 29 countries, SBI is among the top hundred banks globally and is the only Indian Bank in the Top 100. The State Bank Group together consists of more than 14,500 branches and 370,000 employees and retirees.

SAP was selected to align the State Bank Group’s current human resource management system (HRMS) with the groups’ growing business needs and to empower its large workforce to manage processes in a collaborative environment. Using SAP® software, State Bank Group aims to respond faster to market demands, enable real-time information access and assign the right people to the right positions at the right time.

Implementation of mySAP ERP will help State Bank Group drive advancement and innovation in areas of human capital management and enterprise resource planning such as e- learning, virtual classrooms, career development and succession planning, competency assessment, performance management and property management.

“The decision to select SAP was based on the bank’s requirement for an internationally renowned solution and implementer with deep technology and industry experience, ability to manage operational and external risks, commitment to long-term partnerships and an excellent track record for product delivery.” said a senior officer of SBI. “We will leverage the opportunities created by this transition to unleash the potential of the employees and help bank in integrating, streamlining and transforming the employee processes and to consolidate our leadership position in the marketplace and remain competitive on a global scale.”

“As the market leader in the Indian banking sector, SBI demonstrates real leadership by leveraging technology tools for transformation and innovation to maintain rapid business growth and market leadership,” said Alan Sedghi, president and CEO, SAP South Asia. “With our comprehensive portfolio of solutions, applications, technology and services for the banking and financial services industry, SAP continues to deliver solid business transformation results to global banks for both traditional and innovative enterprise-wide business process enablement. Going forward, we look forward to working with SBI to expand the scope of our partnership and help the company to achieve its business goals.”

SAP is the leading provider of mission-critical solutions to the leading banks and financial institutions globally.

About State Bank of India and Its Group
State Bank of India is the largest Bank in the country in terms of Balance Sheet size, Profit, Number of branches and number of employees. It is also the largest in the world in terms of number of branches and is the only Bank from India figuring in the list of top 100 banks in the world. The Bank offers almost every product in the financial super market to its customers. The Bank is in 200th Year of business and has made profit for all the years. State Bank of India and its seven Associate Banks have already developed group synergy in areas like Real Time On-line Banking, ATM, Treasury and other IT areas. The proposed HRMS Solution would further integrate the Human Resources operations across the group uniformly.

About SAP
SAP is the world’s leading provider of business software*. Today, more than 33,200 customers in more than 120 countries run SAP® applications—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 software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. 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 as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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