Ad-hoc | 11 January 2005 16:01

SAP AG: To Report 10% Growth in Software Revenues for the Full-Year 2004

Ad hoc announcement §15 WpHG Preliminary Quarterly Results SAP AG: To Report 10% Growth in Software Revenues for the Full-Year 2004 Ad hoc announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— January 11, 2005. SAP AG today announced that after a preliminary review of its 2004 fourth quarter results, it expects fourth quarter software revenues to be EUR1,003 million, representing an increase of 8% compared to fourth quarter 2003 software revenues of EUR932 million. On a constant currency basis, fourth quarter 2004 software revenues were up 11% compared to the fourth quarter of 2003. On a quarter-end U.S. dollar exchange rate basis, the Company expects reported software revenues to be $1,366 million for the fourth quarter of 2004. The Americas region is expected to report software revenues of EUR318 million for the fourth quarter of 2004, representing an increase of 26% compared to the fourth quarter of 2003. In the U.S., software revenues for the fourth quarter of 2004 are expected to increase by 19% to EUR233 million (representing a 30% increase on a constant currency basis and $318 million on a quarter-end U.S. dollar exchange rate basis). In the EMEA region, fourth quarter 2004 software revenues are expected to be EUR579 million (Q4 2003: EUR578 million). Fourth quarter 2004 software revenues in the APA region are expected to increase by 4% to EUR106 million. Full-year 2004 software revenues are expected to be EUR2,361 million, representing an increase of 10% compared to full-year 2003 software revenues of EUR2,148 million. On a constant currency basis, full-year 2004 software revenues were up 13% compared to the same period in 2003. Total revenues for the fourth quarter of 2004 are expected to be EUR2,401 million, which is up 8% from EUR2,215 million reported in the same period last year. On a constant currency basis, fourth quarter 2004 total revenues were up 12% compared to the fourth quarter of 2003. On the basis of these figures, SAP expects to meet its previously published pro forma operating margin target and slightly exceed the high end of the previously published target range for pro forma earnings per share. The Company expects its 2004 pro forma operating margin to increase by around 1 percentage point to approximately 27.8% (2003: 26.8%). The 2004 pro forma operating margin can be reconciled to the operating margin (2004: approximately 26.9%) by adjusting operating income for stock-based compensation (approximately EUR41 million) and acquisition-related charges (approximately EUR27 million). SAP AG Neurottstraße 16 69190 Walldorf Deutschland ISIN: DE0007164600 WKN: 716460 Listed: Frankfurt; Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime Standard) und Stuttgart; Freiverkehr in Düsseldorf, Hamburg, Hannover und München; EUREX; Swiss Exchange; London; NYSE End of ad hoc announcement (c)DGAP 11.01.2005 Issuer’s information/explanatory remarks concerning this ad hoc announcement: Total revenues for the full-year 2004 are expected to be EUR7,514 million, which is an increase of 7% compared to EUR7,024 million reported for 2003. On a constant currency basis, total revenues for the full-year 2004 were up 10% compared to 2003. SAP will provide further details of its 2004 preliminary results and outlook for the full-year 2005 on January 26. End of message (c)DGAP 111601 Jän 05