SCIENCE

WALLDORF, GERMANY -- SAP AG (NYSE: SAP), a leading provider of e-business software solutions, today announced strong sales and profit performance for the second quarter and half year ended June 30, 2001. In the second quarter of 2001, revenues rose 24% over the same period last year to Euro 1.85 billion (2000: Euro 1.5 billion). Second quarter 2001 operating income, before charges for stock-based compensation programs (STAR and LTI) and TopTier acquisition related costs, rose 72% to Euro 424 million (2000: Euro 246 million). Operating margin, excluding stock based compensation and TopTier acquisition related charges, improved to 23% (2000: 16%). Earnings before interest, taxes, depreciation and amortization ("EBITDA") improved by 118% to Euro 450 million (2000: Euro 206 million). Net income for the second quarter 2001 grew 78% to Euro 206 million (2000: Euro 116 million) and earnings per share for the quarter was Euro 0.65 (2000: Euro 0.37). Earnings per share excluding charges related to the acquisition of TopTier were up 92% to Euro 0.71 (2000: Euro 0.37). "We are the acknowledged leader in e-business software solutions - no other company comes even close in the breadth and depth of our offerings," commented Hasso Plattner, Co-Chairman and CEO of SAP AG. "Customers and prospects trust our ability to deliver complete solutions to business challenges in any industry anywhere. We continue to expand our leadership through investments in enterprise portal solutions and exchange technology, which we consider to be significant revenue drivers of the future." In the quarter, revenues in Europe, the Middle East and Africa (EMEA) region increased 36% to Euro 962 million (2000: Euro 708 million) and in the Asia-Pacific region (APA) revenues were up 15% to Euro 220 million (2000: Euro 192 million). Revenues in the Americas region rose 12% to Euro 671 million (2000: Euro 598 million); however, at constant currency rates, revenues in the Americas would have risen 6%. "Our strong operating performance this quarter was driven mostly by our ability to control on-going costs. In an uncertain business environment, SAP's strength and commitment are a competitive advantage. Excluding the currency effects, all regions performed well; even in the Americas, where we believe our overall market share increased," said Henning Kagermann, Co-Chairman and CEO of SAP AG.