Information Systems Upgrade at Hershey Foods Powers Business Transformation

Accenture and SAP Team PartnerTeam Partner
with Hershey Foods to Build a Brand-Focused Business

HERSHEY, Pa. - Aug. 28, 2002 - Hershey Foods Corporation (NYSE: HSY) today announced the successful upgrade of its enterprisewide information platform. The new system, powered by mySAP.com® software from SAP AG (NYSE: SAP) and managed and implemented by Hershey Foods with program management assistance from Accenture (NYSE: CAN), provides the company with the technology foundation to support its corporate business strategy of brand-building and creating a low-cost supply chain.

"By aligning our IT initiatives with Hershey's overall business strategy, our, our information systems have become a catalyst for achieving the corporation's strategic objectives." ," said George Davis, vice president, and chief information officer, Hershey Foods .Foods. "As Hershey shifts it's focus toward core brand growth, its information systems are providing the necessary data to support the transformation of the organization and business processes. The successful upgrade to SAP® R/3® 4.6 was a critical element of our strategy and was the result of the partnership between Hershey, Accenture, and SAP as well as the exceptional efforts of the Hershey teams across the company."

The upgrade to mySAP.com at Hershey began in July 2001 and was completed in 11 eleven months, 20 percent under budget and without disruptions to customers. "Our keys to success were strong Hershey program managment and executive leadership, diligent planning, and near flawless executionThe program motto was Test, Test Test, Train, Train, Train,," said Joe Zakutney, Director director, SAP Upgrade Program, Hershey Foods. [The following sentence doesn't make sense.]"T"This, coupled with an extensive testing and training plan, enabled strong Hershey leadership, program management, and near flawless execution, Hershey Foods Information Services organization to over-delivered against the program our commitments."" The upgrade represents an ongoing commitment by Hershey to leverage business value from packaged application software, a strategy that began in 1997. With mySAP.com, Hershey has consolidated the processing of more than 95 percent of its revenue and business transactions within a single system, providing greater consistency, visibility, and real-time access to critical business information. Hershey is leveraging SAP® BW toBWBusiness Warehouse (SAP BW) to facilitate its focus on brand building. Information, previously, previously organized based on manufacturing data, now, now is available to brand managers in SAP BW according to brand type, for more effective tracking, reporting, analysis, and forecasting. The upgrade positions Hershey to take advantage of the technology as it enters the importantthe important 2002 Halloween season.

Deployment of the mySAP.com enterprise management solution produced over more than 30 enhancements to core business processes within 60 days of going live in May 2002; enhancements include the automation of materials management invoice verification, military distributor credit processing, and pick list processing, all resulting in reduced costs and faster processing times. With the system, Hershey has achieved a near zero-defect production environment. Additionally, business analytics capabilities are providing real-time impact analysis for sales and marketing activities and have led to significantly reduced packaging stock outs. These capabilities also will enable the company to leverage business intelligence features of the system to maximize the effectiveness of its trade promotion activities. Hershey also plans to further the transformation of its operations with the deployment of additional solutions, including mySAP™ Human Resources.

"Hershey is an excellent example of how a company can use strong technology and savvy business partners to transform operations and grow the business," said Jeff Hutchinson, Accenture partner. "Working together, the team integrated the company's IT strategy and its business strategy -- a -a powerful trend that will help all types of companies drive future growth."

"With the success of its recent upgrade, the fullcomplete story of Hershey's remarkable transformation can be fully understood and appreciated," said Hasso Plattner, co-chairman and CEO, SAP AG. "Hershey's IT deployment has clearly played a strong role in reshaping the business, evidence of true alignment across all departments of its overall business objectives. Hershey has established itself firmly as a best-in-class employer of technology in the consumer products industry." "Hershey is achieving a remarkable business transformation, and the company's IT deployment clearlydeployment clearly is playing a strong role in reshaping the business," said Hasso Plattner, co-chairman and CEO, SAP AG. "With the success of its recent upgrade, Hershey is establishing itself firmly among the leading deployers of technology in the consumer products industry."

About Hershey Foods Corporation

SAP is the world's leading provider of e-business software solutions. Through the mySAP.com^® 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^® 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)

# # #

Hershey : Christine Dugan, +1 (717) 534-7631, cdugan@hersheys.com, EDT

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

Accenture: Michael Corrado,+1 (917) 452-8956, michael.corrado@accenture.com, EDT -- ET