Retail News Update

Germany’s Leading Grocery Retailer Ensures Competitive Edge with SAP® for Retail

HAMBURG, Germany – October 23, 2007 – Strengthening its position as one of the leading solutions providers to retailers around the world, SAP AG (NYSE: SAP) today announced that German-based EDEKA-Group will implement SAP® for Retail solutions to ensure an integrated merchandise planning process, reduce IT operating costs and support enterprise growth through a flexible enterprise service-oriented architecture (enterprise SOA). With revenues of more than EUR 37 billion, EDEKA-Group is Germany’s leading grocery retailer and is currently facing a business challenge to consolidate its IT activities with its new subsidiary LUNAR GmbH.

LUNAR GmbH acts as the IT center of excellence for EDEKA-Group and will be enlarged by up to 250 employees. The company aims to complete the reorganization of its IT landscape and bundle its operational business processes within a cross-group strategy.

“The consolidation of our IT infrastructure will allow us to cut costs by several hundred million euros,” said Alfons Frenk, CEO of EDEKA AG. “We will optimize the entire process chain within the group in order to operate in a more competitive and agile manner.”

“EDEKA is at the leading edge of the highly competitive retail market,” says Léo Apotheker, Deputy CEO, SAP AG. “Their long-term, strategic approach to an integrated enterprise resource planning system will provide standardised, transparent access to mission-critical data to speed up company response times and lower costs which is ultimately of benefit to EDEKA customers. SAP is extremely proud to partner with one of the premier names in retail.”

Integrated Enterprise Resource Planning
The SAP for Retail solutions will allow EDEKA-Group to maintain consistent quality regarding item numbers, master data and product group structures. Additionally, EDEKA-Group will be able to ensure data transfer across all retail locations and regional subsidiaries. EDEKA-Group is also using the SAP® ERP application and the SAP NetWeaver® technology platform to harmonize its merchandise planning and control systems. In the future, the group’s major business areas, which comprise the wholesale and the retail business, will be managed by SAP solutions.

Flexible IT Architecture
Over the past few months, the IT experts at EDEKA and SAP worked together to complete a current-state processes analysis. The team examined enterprise resource planning processes for wholesale and retail, master data management and the cross-company reporting system and provided the basis for the implementation phase. Going forward, various business units will display their business processes in an “EDEKA business process pool,” based on a flexible enterprise service-oriented architecture. To achieve this, EDEKA will deploy the SAP NetWeaver technology platform as well as the analytical tools of SAP NetWeaver Business Intelligence (SAP NetWeaver BI), SAP NetWeaver Master Data Management (SAP NetWeaver MDM) and SAP NetWeaver Exchange Infrastructure (SAP NetWeaver XI) for integration- and interface management.

About EDEKA
Celebrating its centenary this year, the EDEKA-Group, with a business turnover of over 37 billion Euros and a distribution network of 10,000 stores, is the unchallenged leader in the German groceries retail business. In 2006, the company’s market share was 26 percent accounting for 8 percentage points ahead of the second in the market. With 253,000 employees, more than in any other German company, EDEKA is also Germany’s top employer. The three distribution channels – supermarkets, self-service department stores and discount stores – provide sustainable and profitable growth. In the fiscal year 2006 the group generated an EBIT of over 1 billion Euros. By 2010, EDEKA is planning to open 1,200 new stores and increase its market share to 30 per cent on the German market.

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. The portfolio comprises an end-to-end set of retail solutions; 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 43,400 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 <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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