“Alliance Digital Product Flow” Research Project Begins

“Alliance Digital Product Flow” Research Project Begins

From the Internet of Things to Intelligent Business Processes

DARMSTADT, GERMANY — Feb. 5, 2009 — Germany’s largest enterprise application software vendors are teaming up with partners from science and industry in a research project aimed at driving the use of the “Internet of Things” in intelligent business processes. The researchers intend to leverage the full scope of process-relevant information from the Internet of Things to make business processes more flexible and more dynamically adaptable. The project is a perfect example of how Germany continues to invest in research even in times of economic crisis in order to foster the competitiveness of Germany as a business location. The initiators of the research project, known as the “Alliance Digital Product Flow”, include its coordinator, SAP AG, the German Research Center for Artificial Intelligence (DFKI), the Fraunhofer Institute, IDS Scheer AG, Software AG, the Technical University of Darmstadt, and the Institute for Applied Computer Science at the Technical University of Dresden. The German Federal Ministry of Education and Research is funding the project with 17.7 million euros. The project partners signed the cooperation agreement today and received the authorization by Parliamentary State Secretary Andreas Storm. The alliance officially begins its assignment today.

“Our traditional strengths lie in the areas of products, goods and manufacturing. With the Internet of Services, Germany has the opportunity to play a leading role in developing the future Internet and its applications,” said Parliamentary State Secretary Andreas Storm, German Federal Ministry of Education and Research. The aim of the research project is to investigate technologies for enterprise applications that plan, manage, and execute complex and dynamic business processes via the Internet of Things. So far, Internet of Things technologies have been used to identify objects and to automate data entry for individual process steps – such as goods receipt or issue. The intention is to leverage the methods and tools researched by the Alliance to record and analyze all the events that take place in an object in a structured way in order to plan, manage, and optimize the entire business process sequence — including goods and information flow — automatically and in alignment with economic and environmental criteria.

During the research project, the application scenarios will undergo feasibility testing in the retail, logistics, and mechanical engineering industries to ensure cross-industry applicability, a high degree of reusability, and thus a strong economic benefit. In the area of transportation logistics, the researchers will look at how logistics service providers can collaborate more efficiently. In mechanical and plant engineering, the aim is to develop solutions that identify changing customer requirements and adjust maintenance services dynamically. In retail, research will focus on how to dynamically adjust business processes at the point of sale to reflect changing consumer behavior.

Complementing the work of the research partners, big-name industrial enterprises ABB, DB Schenker, and Globus plan to assist in designing and evaluating the applications. Small and midsize enterprises, including B2M Software AG, Sopera GmbH, and ubigrate GmbH, will contribute specialized solutions. The Alliance Digital Product Flow augments the “Digital Product Memory” research alliance, which currently consists of the Aletheia (Semantic Federation of Comprehensive Product Information) and SemProM (Semantic Product Memory) projects sponsored by the German Federal Ministry of Education and Research.

About the German Research Center for Artificial Intelligence (DFKI GmbH)
Since its foundation in 1988, the German Research Center for Artificial Intelligence, based in Kaiserslautern, Saarbrücken, Bremen and supplemented by a project office in Berlin, has become the world’s leading research center in this field. The financial budget in 2008 was 26 million Euros. DFKI projects cover the whole spectrum from application-oriented basic research to market- and client-oriented design of product functions. Currently more than 300 employees from 46 countries are conducting research focusing on knowledge management, multi-agent technology, simulated reality, language technology, intelligent user interfaces, image understanding, pattern recognition, robotics, safe and secure cognitive systems, augmented vision and information systems. Impact: more than 50 professorships of former DFKI employees, and more than 50 spin-off companies with more than 1,300 highly qualified jobs. For further information: www.dfki.de“

About the Fraunhofer-Institute for Experimental Software Engineering IESE
Fraunhofer IESE is one of the worldwide leading research institutes in the area of software and systems development. A major portion of the products offered by our collaboration partners is defined by software. These products range from automotive and transportation systems to telecommunication and telematics equipment, from information systems and medical devices to software systems for the public sector. Our solutions allow flexible scaling. This makes us a competent technology partner for organizations of any size – from small companies to major corporations. Under the leadership of Prof. Dieter Rombach and Prof. Peter Liggesmeyer, the past decade has seen us making major contributions to strengthening the emerging IT location Kaiserslautern. In the Fraunhofer Information and Communication Technology Group, we are cooperating with other Fraunhofer institutes on developing trend-setting key technologies for the future. Fraunhofer IESE is one of 57 institutes of the Fraunhofer- Gesellschaft. Together we have a major impact on shaping applied research in Europe and contribute to Germany’s competitiveness in international markets. As part of the Fraunhofer Center Kaiserslautern, the institute is officially a “Selected Landmark 2009“ in the contest “365 Landmarks in the Land of Ideas“.

About the Fraunhofer Institute for Material Flow and Logistics IML
Fraunhofer IML is considered the leading research and consultation provider for all logistic issues in the area of internal and external logistics. Founded in 1981, IML currently employs 180 scientists as well as 200 PhD students and graduate students in Dortmund and in its branches in Cottbus, Frankfurt/Main, Prien am Chiemsee, Lisbon, and Beijing. Teams assembled in accordance with project or customer needs develop solutions that transcend single domains and are tailored to individual customers, who represent domains ranging from material flow technology, warehouse management, business process modeling, simulation-based business and system planning, to traffic systems, resource logistics, and e-Business. The “Internet of Things” as a research focus of the Fraunhofer- Gesellschaft is managed within Fraunhofer by Fraunhofer IML.

About the Fraunhofer Institute for Secure Information Technology SIT
As a specialist in IT security the Fraunhofer Institute for Secure Information Technology develops holistic turnkey solutions that are completely tailored to the needs of our clients. Our highly qualified staff of more than one hundred employees is active in all relevant fields of IT security and forms a broad base of competence for cross-technology development at the highest level of quality. SIT provides services for all branches of industry. Numerous successful projects at an international level visibly demonstrate our trustworthiness and reliability as a cooperation partner.

About the Fraunhofer Institute of Industrial Mathematics ITWM
The core competences of the ITWM are classical disciplines of applied mathematics, such as numerics, differential equations, stochastics, and optimization. These are complemented by areas of mathematical theory which have emerged as boundary areas between mathematics and technology. The ITWM has meanwhile used these core competences for the conclusion of approximately 700 projects within its business areas of “Virtual Material and Product Design”, “Process Simulation”, and “Diagnosis Systems”. Products include software which is developed on the basis of the institute’s know-how, consulting and support services, as well as complete system solutions. The ITWM does not only apply simulation software; instead, the software is developed directly at the institute, often in cooperation with leading software houses. It is the ITWM’s intention not only to build a bridge between real and virtual world, but also to create a connection between mathematics at the university and its practical applications. The close cooperation with the Department of Mathematics of the University of Kaiserslautern is therefore especially important for the ITWM. Currently, 190 employees are working at the ITWM; the institute`s budget adds up to 14 Mio Euro in 2008. The institute is directed by Prof. Dieter Prätzel-Wolters and belongs to the 56 institutes of the Fraunhofer-Gesellschaft, which is the largest organization for applied research in Europe, thus contributing to national and international competitiveness.

About IDS Scheer
IDS Scheer is the market leader in Business Process Management (BPM) software, solutions and services for corporations and public organizations worldwide. With its unrivaled ARIS Platform for Process Excellence, the company offers an integrated, comprehensive solution portfolio for the strategy, design, implementation and controlling of business processes; allowing companies to continuously improve their overall business performance. Utilizing the ARIS Value Engineering (AVE) approach, IDS Scheer consultants bridge the gap between corporate strategy, business processes, IT solutions and process controlling. About 3,000 employees in over 70 countries serve the company’s 7,000 customers. In 2007, IDS Scheer’s revenues reached 393,5 million Euro . Established in 1984 by Prof. August-Wilhelm Scheer, IDS Scheer is listed in the TecDAX on the Frankfurt Stock Exchange (Germany).

About SAP
SAP is the world’s leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With approximately 82,000 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” For more information, visit www.sap.com.

About Software AG
Software AG is the world’s largest independent provider of Business Infrastructure Software. Our 4,000 global enterprise customers achieve business results faster by modernizing, integrating and automating their IT systems and processes. As a result, they rapidly build measurable business value and meet changing business demands. Based on our solutions, organizations are able to liberate and govern their data, systems, applications, processes and services – achieving new levels of business flexibility.Our leading product portfolio includes solutions for high performance data management, developing and modernizing applications, enabling service-oriented architecture, and improving business processes. By combining our technology with industry expertise and best practices experience, our customers improve and differentiate their businesses – faster.Software AG has almost 40 years of global IT experience and over 3,600 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues of €721 million in 2008 (IFRS, unaudited).

About Technische Universitaet Darmstadt
The Technische Universität Darmstadt (TU Darmstadt) is one of the best technical universities in Germany. TU Darmstadt enjoys an excellent reputation worldwide in teaching and research and in the following future related fields: Communication and information technology, energy and mobility, construction and living conditions. TU Darmstadt operates on an annual budget of € 310 million, € 90 million of which are third-party-funds. 19,000 students study at TU Darmstadt. The university has 3,770 staff members, 270 of which are professors.

About Technische Universitaet Dresden (TUD)
The Technische Universitaet Dresden (TUD) offers a comprehensive curriculum and its numerous faculties cover a broad range of subjects. It is one of the most research-oriented universities in Germany, and its activities are strongly oriented towards exchange and cooperation with the economy and society. The TU Dresden is currently the largest university in Saxony. There are approximately 35,000 students, and (excluding the School of Medicine) it has around 4,200 permanent employees, including 419 professors and some 2,000 non-academic staff. In 2008, the TU Dresden raised over 150 million Euros in third party funding. The Faculty of Computer Sciences, with about 2,500 students, is one of the largest computer science training centers in Germany today. A total of 28 professors and lecturers, and over 260 non-academic staff work in its six departments.

(*) SAP defines business software as comprising enterprise resource planning and related applications. 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 © 2009 SAP AG. All rights reserved. SAP, R/3, mySAP, mySAP.com, 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.

Note to editors: To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/stockfootage . On this newly launched platform you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.

For more information, press only:

Deutsches Forschungszentrum für Künstliche Intelligenz (DFKI)
Reinhard Karger, DFKI, +49 (0)681-302-5253, reinhard.karger@dfki.de

Fraunhofer Institut für Experimentelles Software Engineering IESE
Alexander Rabe, Fraunhofer IESE, +49 (0)631-6800-1002, alexander.rabe@iese.fraunhofer.de

Fraunhofer-Institut für Materialfluss und Logistik IML
Ralf Neuhaus, Fraunhofer ILM, +49 (0) 231 / 97 43-2 74, ralf.neuhaus@iml.fraunhofer.de

Fraunhofer-Institut für Techno- und Wirtschaftsmathematik ITWM
Steffen Grützner, Fraunhofer ITWM, +49 (0)631-31600-4400, steffen.gruetzner@itwm.fraunhofer.de

IDS Scheer AG
Irmhild Plaetrich, IDS Scheer, +49 (0)681-210-3680, irmhild.plaetrich@ids-scheer.com

SAP AG
Hilmar Schepp, SAP AG, +49 (0) 62 27-74 67 99, hilmar.schepp@sap.com

Sven Kahn, Burson-Marsteller, +49 (0) 69-2 38 09-24, sven.kahn@bm.com

SAP Presse-Hotline: +49 (0) 62 27-74 63 15

Software AG
Norbert Eder, Software AG, +49 (0) 6151- 92-1146, Norbert.Eder@softwareag.com

Technische Universität Darmstadt
Jörg Feuck, TU Darmstadt, +49 (0)6151-16-4731, feuck@pvw.tu-darmstadt.de

Technische Universität Dresden. Institut für Angewandte Informatik
Prof. Dr.-Ing. habil. Klaus Kabitzsch, TU Dresden, +49 (0)351-463-38289,
kabitzsch@inf.tu-dresden.de

Prof. Dr.-Ing. habil. Martin Wollschlaeger, TU Dresden, +49 (0)351-463-39670,
Martin.Wollschlaeger@inf.tu-dresden.de355443