NEW YORK, Jan. 15, 2007 -- Demonstrating its ongoing success in the retail industry, SAP AG (NYSE: SAP) today announced that Ace Hardware Corporation, the largest hardware cooperative in the world, has selected mySAP(TM) ERP and the SAP(R) for Retail solution portfolio to enable order management efficiencies and drive profitability. In an increasingly competitive environment where retailers are looking to reduce operational costs while increasing customer value, Ace will turn to SAP to consolidate various disparate legacy systems onto a single, integrated platform to increase the effectiveness of the supply chain, merchandising and business operations. The announcement was made at the National Retail Federation (NRF) Conference, being held in New York, NY, January 15-17.

Throughout the course of its more than 80 years in business, Ace has grown from a few Chicago-area hardware stores to include more than 4,600 stores in 50 states and more than 70 countries. In its efforts to grow revenues, cut costs and deliver the best service to customers worldwide, Ace is seeking to increase visibility into and control over its supply chain, improve flexibility of processes and minimize inefficiencies.

"Developing an integrated, reliable technology infrastructure is fundamental to Ace becoming a world-class supply chain organization, and we've chosen SAP as our partner based on its proven reputation as the global leader in providing business software solutions," said Dan Prochaska, vice president, Supply Chain, Ace Hardware. "We are excited about the opportunity to run a more effective, scalable and flexible solution to help run our business. SAP was able to best address our most imperative business needs."

Ace Hardware selected SAP to more effectively manage business performance across the globe by using SAP for Retail solutions, allowing the company to leverage existing IT investments inside an integrated solution landscape.

"Ace was looking for a trusted business and technology solution partner that could carry us beyond our needs today and last us for the next 10 to 15 years," said Mike Elmore, CIO, Ace Hardware. "We needed a solution that will allow us to be innovative, reduce costs and create flexible business strategies. Ace Hardware will be able to run our business on an SAP platform today with the goal of expanding our business capabilities in the future."

"SAP has a proven track record of helping retail customers worldwide achieve their goals for leadership and growth, resulting in competitive advantage with happier customers and lower overall business costs," said Jim Mattecheck, senior vice president, Retail, SAP America Inc. "Today's announcement is further evidence of SAP's dedication to its customers by providing top-rated solutions that address complex retail business needs."

About Ace

Ace Hardware Corporation is the largest retailer-owned hardware cooperative in the industry. Annual retail sales for Ace's more than 4,600 hardware, home center and lumber and building materials locations approximate $13 billion. Headquartered in Oak Brook, Ill., Ace currently operates 14 distribution centers in the United States and its retailers' stores are located in all 50 states and 70 countries. More information on Ace can be found at http://www.acehardware.com.

About SAP for Retail

SAP for Retail is a solution portfolio that helps retailers understand their business, anticipate the needs of their business and inspire their customers, employees and shareholders by delivering results. SAP for Retail is an end-to-end set of retail solutions including the development of demand intelligence (through the acquisition and integration of Khimetrics); merchandise management and planning; store operations (through the acquisition and integration of Triversity POS solutions); and base finance and HR solutions. SAP for Retail helps retailers of all sizes to create shopping experiences that their customers will want again and again, by providing the ability to make the right decisions quickly and profitably (Additional information at http://www.sap.com/retail/ ).

About SAP

SAP is the world's leading provider of business software*. Today, more than 36,200 customers in more than 120 countries run SAP(R) applications -- from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver(R) platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. 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 as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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