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 and Microsoft Corp. (Nasdaq: MSFT) 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(R) Office applications. Users of this product, the first to be developed jointly between 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(R) '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 Microsoft 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(TM) Enterprise Resource Planning (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 calendar year 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(R) forms.

Siemens VDO, a leading global supplier to the automotive industry, is planning to roll out "Mendocino" to take advantage of its time-management capabilities. The company expects that the integration of Microsoft Office technologies such as Microsoft Outlook(R) with SAP's ERP platform will help its employees track and manage their time, while giving supervisors access to complete and accurate employee information to produce timely billings and maintain tight budget control.

"With this new offering, 'Mendocino,' we plan to extend the rich and productive environment of SAP best-practice business processes across our work force," said Jean-Claude Viguier, director, Corporate IT Strategy and Business Process Architecture, Siemens VDO. "As a result, systems once accessed by a handful of SAP power users will be available to thousands of employees who are familiar with the Microsoft Office environment. The rollout of new capabilities will require no training, have a high user acceptance rate, and quickly boost productivity across the organization."

Harnessing Web Services and Services-Oriented Architecture to Ease Integration

Delivering on their ongoing commitment to Web services as the foundation for the next generation of enterprise software, this joint product builds on the companies' existing product interoperability efforts and global alliance. "Mendocino" takes advantage of the openness of Enterprise Services Architecture (ESA), SAP's blueprint for services-oriented architecture; the Microsoft Office System; and the Web services power of Microsoft .NET to seamlessly integrate the two companies' technologies. It delivers on SAP's vision for a flexible IT infrastructure, powered by SAP NetWeaver(TM), to provide end users with great flexibility in the ways they access SAP(R) solutions. And it continues to build on Microsoft's commitment to extend the capabilities of the Microsoft Office System of programs, servers and services to increase individual and organizational productivity and expand partner opportunities for innovation and business growth.

"Today it's too difficult for information workers to access the business information they need to make effective and efficient decisions," said Jeff Raikes, group vice president for the Information Worker Business at Microsoft. "This product will go far to address this issue. 'Mendocino' allows us to deliver more value to the many customers who use Microsoft and SAP products today, and promises to put the power of enterprise systems at the fingertips of every information worker."

"The creation of this powerful new joint product builds on SAP's 15-year strategic relationship with Microsoft," said Shai Agassi, president of the Product and Technology Group and member of the Executive Board, SAP. "Together we are working to improve and simplify the knowledge worker experience by extending SAP business processes through Microsoft Office."

Microsoft and SAP have been working together to deliver enterprise business value to customers for more than a decade. More than 46,000 SAP installations run on Microsoft Windows(R) -- more than on all other platforms combined. Almost two-thirds of all new SAP installations are deployed on Microsoft Windows. Additional information on "Mendocino" is available at .

About SAP

SAP is the world's leading provider of business software solutions.* Today, more than 27,000 customers in over 120 countries run more than 91,500 installations of SAP(R) software-from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver(TM) platform to drive innovation and enable business change, mySAP(TM) Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. 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 .)

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

* SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

NOTE: Microsoft, InfoPath, Outlook and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

SAP, R/3, mySAP,, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

SOURCE Microsoft Corp.

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