Chicago, USA - 27 June 2002 (PRN): SAP AG (NYSE:SAP) Tuesday announced an advanced new modular forecasting and replenishment solution that enables retailers to dramatically improve on-shelf availability, reduce inventory, and optimize the supply chain. Powered by knowledge and technology from SAF AG, the leader in automated forecasting and cost-optimized replenishment solutions for retailers, SAP now provides retailers with the industry's smartest and most powerful inventory-management tools. This strategic alliance between SAP and SAF was announced at the Retail Systems 2002(R) Conference & Exhibition in Chicago, Ill., June 24-27.

The combination of SAP's leadership in business application development and SAF's innovation in retail forecasting and replenishment will provide retailers with the comprehensive retail functionality necessary to optimize inventory and produce a rapid return on investment. This alliance is part of SAP's strategy to offer world-class supply chain solutions for the retail industry. Avoiding cost-intensive additional inventories, heightening customer loyalty, and eliminating lost sales are critical issues. Optimal planning of resources like transportation capacities, personnel, and warehousing is fundamental. Supply Chain Planning with mySAP(TM) Retail will enable retailers to transform linear and sequential supply chains into an adaptive supply chain network. Within such a network, all partners/retailers, as well as CPG manufacturers, distributors, and service providers can jointly plan and coordinate their businesses in an effort to work more closely together. Collaboration between all supply chain partners minimizes lost sales and improves inventory velocity. The embedding of SAF's solution into the forecasting and replenishment capability of mySAP Retail provides retailers with best-in-class data through integration with SAP's data warehouse. Customers also have a seamless link to a superior execution via the merchandise management capability, which handles purchasing, warehousing, and shipping.

The new forecast and replenishment capability will empower retailers to make better business decisions, in less time, using fewer people. "Metro, as an important customer who uses SAF products strategically for its forecasting and replenishment, welcomes the new partnership between SAF and SAP. This partnership guarantees that the software solutions from SAF will be established as the future standard in the retail industry," said Zygmunt Mierdorf, member of the Executive Board at Metro AG, Duesseldorf.

"SAF has developed its retail forecasting solution by working closely with leading retailers, creating a precision analysis tool to optimize retail supply chain planning," said Dr. Andreas von Beringe, CEO of SAF. "Through this alliance with SAP, we now have the opportunity to reach additional distribution channels and accelerate the global awareness of SAF."

The forecast and replenishment solution will be available immediately within mySAP Retail. As the leader in standard business applications, SAP will continue to embed SAF's existing solution in its leading-edge supply chain management software to improve forecasting and replenishment capabilities for the retail industry. "SAF's expertise in automated forecasting and replenishment is an ideal complement to SAP's retail offering," said Peter J. Kirschbauer, senior vice president of Service Industries, SAP AG. "It will be a key component in SAP's total retail solution, from the back office to the store shelf."

The new forecasting and replenishment solution will be demonstrated by SAP and SAF at Retail Systems, June 24-27, at booth #1805 (SAP) and booth #2712 (SAF) in Chicago. For more information on mySAP Retail, please refer to the mySAP Retail Press Fact Sheet, www.sap.com/usa/sapphire/press/factsheets

About SAP

SAP is the world's leading provider of e-business software solutions. Through the mySAP.com(R) e-business platform, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. Today, more than 18,000 companies in over 120 countries run more than 50,000 installations of SAP(R) software. With subsidiaries in over 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)