Hobby Lobby to Replace JD Edwards with SAP ERP

Heralds Flexible SAP Enhancement Packages for Consuming Innovation

OKLAHOMA CITY, Okla., February 20, 2008 -- Demonstrating ongoing leadership in providing innovative solutions to retailers worldwide, SAP America, Inc., a subsidiary of SAP AG (NYSE: SAP), today announced that Hobby Lobby has selected SAP to provide a stable, predictable solution platform and a clear solution road map to help the company manage operations and continue to grow successfully. Hobby Lobby turned to SAP as its strategic and trusted software provider to help ensure that the agility of the retailer’s systems will meet evolving business needs.

From its beginnings in a 300-square-foot retail location in Oklahoma City in 1972, Hobby Lobby has grown into one of the largest private retailers in North America. Today, the company has nearly 400 retail stores in 32 states, and projected sales of 1.8 billion dollars in 2008. To continue its pace as a fast-growing company, it needed a flexible, unified platform that would enable rapid response to market and customer demands, as well as help reduce total cost of ownership.

Hobby Lobby has selected SAP’s flagship enterprise resource planning (ERP) software, SAP® ERP, to replace its existing JD Edwards software. Hobby Lobby will have fully integrated processes to more efficiently manage its operations and to pursue growth opportunities. Hobby Lobby was particularly attracted to the application’s model of incremental upgrades via enhancement packages that will provide Hobby Lobby a stable core system and the ability to add new functionality and capabilities as its needs require without traditional comprehensive system upgrades that disrupt operations.

“A flexible solution platform that allows for incremental enhancements based on business needs and a clear road map for the future is critical to the long-term success of Hobby Lobby,” said Jeanne Cotter, CIO, Hobby Lobby. “Our choice to use SAP ERP as our stable business process platform allows us to take advantage of enhancement packages to adopt new business functionality and retail industry-specific features at our own pace, with minimal system disruption. Hobby Lobby sees SAP as the IT provider of choice and a trusted partner who truly understands our business, and one that will continue to support its customers in the long run.”

SAP applications for financials, human capital management and payroll will help Hobby Lobby improve productivity for the core operations of its business while reducing total cost of ownership by having all systems on a common, modern platform. SAP solutions will help the company manage the complexities of its domestic operations such as adjusting to the ongoing changes of national and local laws.

“Retailers are investing in strategic platforms that provide them with data integration and transparency, so that their IT operations can grow with them, not hinder them.” said Greg Buzek, founder and president of IHL Consulting Group.

“Hobby Lobby is a fine example of retailers turning to SAP as a trusted provider to support their strategic goals,” said Chris Verheuvel, senior vice president and general manager, SAP Retail. “SAP’s integrated retail solutions enable customers to anticipate and capitalize on the ever-changing market conditions in an industry renowned for speed, complexity and customer service.”

About SAP® ERP

SAP® ERP is the market-leading enterprise resource planning (ERP) application, offering organizations a proven foundation to improve performance, support growth, lower operating costs and achieve operational excellence. Powered by the SAP NetWeaver® technology platform, SAP ERP addresses the core business requirements of midsize and large organizations including financial, human capital management, procurement and logistics, product development and manufacturing, as well as sales and service. With SAP ERP, enterprises can achieve superior performance in all areas of their organization, adapt quickly and cost-effectively to changing requirements, and deliver business insight broadly to information workers throughout the organization. SAP ERP also includes robust analytics and rich functionality to address the requirements of diverse industries.

About SAP

SAP is the world’s leading provider of business software*. Today, more than 46,100 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small businesses and midsize companies to suite offerings for global organizations. Powered by the SAP NetWeaver® technology 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 )

(*) 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.

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 © 2008 SAP AG. All rights reserved. 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.

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