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Oreck selects SAP for integrated retail business management and growth

SAP for Retail Solutions to Enable Use of Real-time Data to Drive Sales Growth, Enhance Customer Experience and Improve Inventory Productivity

NEW ORLEANS, May 2, 2005 -- SAP AG today announced that Oreck Corporation, a leading manufacturer of vacuum cleaners and other cleaning equipment and products, has selected the SAP for Retail solution to help manage its business and generate growth. SAP, the leading provider of enterprise software to retail companies, will help Oreck enhance customer sales and service, better manage and utilize information from its 600 retail stores across the country and integrate and improve business processes across Oreck's retail and manufacturing business.

New Orleans-based Oreck Corporation will deploy SAP for Retail in a phased rollout that will empower more than 1,200 Oreck executives, licensees and managers with capabilities powered by the SAP NetWeaver(TM) platform. The SAP implementation will align the manufacturing arm of the Oreck business, including its principal manufacturing facilities in Long Beach, Miss., with Oreck's retail locations, e-commerce and direct marketing businesses.

"Oreck will be able to serve consumers more effectively and track marketing, sales, manufacturing and inventory to continue to build Oreck's growth," said Tom Oreck, president, Oreck Corporation. "The new system will help Oreck anticipate and respond to consumer and business needs and trends."

The company will enrich the Oreck customer experience with capabilities from mySAP(TM) Customer Relationship Management (mySAP CRM), including interaction center capabilities for service, sales and customer chat, and customer-facing tools that support e-commerce and direct marketing.

SAP will enable Oreck to efficiently manage advertising and direct mail campaigns and assess returns and results through marketing analytics with capabilities for tracking individual sales and the effectiveness of each campaign activity.

Integration of business operations will link retail stores to efficiently support inventory turns and store-level reporting. Oreck Web and Oreck retail store operations will be aligned to enable Web purchases to be picked up or exchanged at retail stores. Point-of-sales (POS) data management will enable Oreck to collect data and respond rapidly to emerging trends in its retail stores with retail analytics.

Oreck also will deploy mySAP(TM) ERP for financials and human capital management to fully enable real-time sense-and-respond capabilities across the enterprise. The solution suite from SAP also provides Oreck with capabilities for more efficiently executing across its supply chain and product life-cycle management activities.

"SAP will help Oreck view and use real-time enterprise performance data to deliver sales growth, enhance the customer experience and improve inventory productivity," said Jim McMurray, senior vice president, Retail, SAP. "With a combination of industry-leading vertical solutions and core business- management capabilities that can be implemented in a modular approach, SAP's retail offerings provide the underpinnings to a long-term, successful IT strategy."

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About Oreck Corporation

Oreck Corporation, based in New Orleans, LA, was founded by David Oreck in 1963. He developed the breakthrough, lightweight, powerful Oreck vacuum. The company offers a Total Cleaning System(TM), including advanced bagged upright vacuums, compact canister vacuums with tools, multi-floor cleaners and advanced air purifiers. Oreck Corporation is privately owned. Oreck vacuums are U.S. manufactured and undergo strict testing and quality control. For more information, see http://www.oreck.com/clean.

About SAP for Retail

SAP for Retail is an industry solution that combines mySAP(TM) Business Suite solutions with a broad set of integrated retail applications to help companies to profitably serve consumer demand across multiple channels. With more than 400 customers using the SAP for Retail portfolio and 2,400 SAP customers in the retail industry worldwide, SAP provides Internet-enabled applications in a fully connected system to help companies integrate sales channels, take advantage of collaboration over the Web, better understand customer preferences, build a business on a solid transactional backbone and bring their businesses to e-marketplaces. Built on the open architecture of the SAP NetWeaver(TM) platform, SAP for Retail allows for integration of business processes for merchandise management and planning, demand forecasting, sophisticated allocation, workforce management, POS data management, RFID, and replenishment. (Additional information at http://www.sap.com/retail/ )

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 http://www.sap.com )

(*) 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.

Copyright (C) 2005 SAP AG. All rights reserved.

SAP, R/3, mySAP, mySAP.com, 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.

SOURCE SAP AG

Web Site: http://www.sap.com



Jim Dever, +1 (610) 661-2161, james.dever@sap.com, EDT

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