SAP and Microsoft Announce First Joint Product Designed to Revolutionize How Information Workers Access Enterprise Applications

SAP - SAP and Microsoft Announce First Joint Product Designed to Revolutionize How Information Workers Access Enterprise Applications: "New Product, Code-named “Mendocino,” Will Present SAP Processes and Data within Familiar, Easy-to-Use Microsoft Office Software

COPENHAGEN, Denmark - April 26, 2005 - SAP AG (NYSE: SAP) and Microsoft Corp. today announced they are jointly developing and planning to offer a new product, code-named “Mendocino,” that will help companies gain a competitive advantage by revolutionizing the way information workers access, analyze and use enterprise data to make better business decisions. “Mendocino” will link SAP process functionality directly to Microsoft� Office applications. Users of this product, the first to be developed jointly by SAP and Microsoft, will enjoy the familiarity of Microsoft Office as they access SAP’s best-practice business processes and information. The announcement was made at SAPPHIRE� ’05, SAP’s international customer conference being held in Copenhagen, Denmark, April 26-28.

With “Mendocino,” SAP and Microsoft aim to drive enhanced efficiency for information workers, who rely on Microsoft Office as their primary work environment. “Mendocino” will tie together Office and SAP enterprise software, giving customers greater visibility and use of business information from their desktop. “Mendocino” will help people avoid wasted time and effort searching for critical corporate information, diminish costly duplication of efforts and limit the need for specific training on disparate systems. “Mendocino” also stands to maximize the value that customers derive from their existing investments in Microsoft Office and mySAP™ ERP.

As part of this expanded partnership, SAP and Microsoft have agreed to each resell the complete solution, meaning SAP will resell Microsoft Office and Microsoft will resell licenses to SAP’s business process platform, which will deliver ready-to-run business processes accessible as enterprise services. Available in 2006, the business process platform will serve as the foundation for the creation and deployment of composite applications such as “Mendocino.”

The new product is slated for availability to select customers for early access in the fourth quarter of 2005. “Mendocino” is designed to integrate SAP processes—such as time management, budget monitoring, organizational management and travel and expense management—directly into Microsoft Office. For example, with the new product, information workers will be able to utilize extended application menus and select process options and information in the SAP-specific smart panel, synchronize information between Microsoft Exchange Server and SAP, retrieve SAP information in Microsoft Excel and submit data via Microsoft Office InfoPath� forms."