Philadelphia Newspapers Makes Safe Passage to SAP and Selects Flagship ERP Application to Drive Productivity and Profitability

PHILADELPHIA, Sept. 6 /PRNewswire-FirstCall/ -- SAP America, Inc., a subsidiary of SAP AG , today announced that Philadelphia Newspapers LLC., a privately held operating company for Philadelphia's largest daily newspapers and media holdings, has selected mySAP(TM) ERP to help boost performance. Philadelphia Newspapers -- which publishes The Philadelphia Inquirer, Philadelphia Daily News and Philly.com Web site -- will use mySAP ERP to migrate all financial systems onto a single general ledger. The SAP(R) software will ultimately streamline the company's procurement and expense management systems across its 2,650 employees to provide better oversight in managing financial operations and help achieve profitability and growth objectives.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050310/SFTH009LOGO-a )

With the largest Sunday readership in the region, Philadelphia Newspapers cited SAP's strong media industry experience as one of the reasons it switched from its incumbent software solution. The SAP customer roster of leading newspapers includes The New York Times, The Washington Post, The Boston Globe, International Herald Tribune and Cox Ohio Publishing. Philadelphia Newspapers will take advantage of the SAP Safe Passage Program to convert from Oracle to SAP.

"SAP's industry experience, coupled with its innovative technology, was the driving force that led to our selection," said Brian Tierney, chief executive officer, Philadelphia Newspapers, LLC. "Like our recent decision to partner with Monster, adoption of this new technology is just one more example of how we intend to revolutionize the publishing industry through innovation."

SAP also offers the industry-specific capabilities of SAP for Media, which includes functionality to help newspapers streamline advertising and circulation management, lower the total cost of ownership by bundling classified-ad management processes into a single application and reduce the number of system interfaces and databases that need to be maintained. Philadelphia Newspapers' move to SAP is part of a larger trend in the rapidly changing media industry, which is focused on improving bottom-line value through IT investment.

"Faced with aggressive consolidation and intense competition, media companies are embracing enterprise-centered approaches to business," said Bill McDermott, president & CEO, SAP Americas. "With in-depth industry expertise and its integrated mySAP ERP application, SAP will help Philadelphia Newspapers achieve critical business transparency that leads to greater productivity, efficiency and profitability."

About Philadelphia Newspapers LLC.

Philadelphia Media Holdings, LLC is a private investment group formed in 2006 for the purpose of acquiring The Philadelphia Inquirer, Daily News, Philly.com and related online assets. The diverse group includes civic, labor

and corporate leaders, entrepreneurs and private investors who share a commitment to high quality, locally-owned journalism.

About SAP for Media

SAP for Media is an industry solution that combines mySAP(TM) Business Suite solutions and tailored functionality to meet the unique demands of publishers, broadcasters, news services and entertainment businesses. With over 640 customers worldwide, SAP for Media provides tailored solutions for intellectual property management, advertising management, product development, and media sales and distribution. Based on the open architecture of the SAP NetWeaver(TM) platform, SAP for Media helps companies take advantage of emerging technologies to quickly seize opportunities and adapt business processes to keep up with the media industry's rapid and radical changes driven by the Internet, online publishing and digital broadcasting. (Additional information at http://www.sap.com/media/ )

About SAP Safe Passage

The Safe Passage program is a comprehensive offering from SAP addressing the concerns of Oracle customers facing the uncertainties of the end of life of ORCL, PSFT, JDE and Retek solutions. Elements of the Safe Passage programs include access to SAP's best-in-class ERP and other market-leading solutions, investment protection for a customer's existing investment in ORCL, PSFT, JDE or Retek solutions, immediate integration benefits through the SAP NetWeaver platform, migration support services including third-party maintenance through SAP subsidiary TomorrowNow, and SAP's network of channel partners focused on small and midsize enterprises.

About SAP

SAP is the world's leading provider of business software*. Today, more than 34,600 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.

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.

NOTE: 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.

For customers interested in learning more about SAP products: Global Customer Center: +49 180 534-34-24 United States Only: 1-800-872-1SAP (1-800-872-1727) For more information, press only: Bonnie Rothenstein, ,+1 (610) 661-8867, bonnie.rothenstein@sap.com, EDT Saskia Riedel, +49 (0) 6227 7 45 173, saskia.riedel@sap.com, CET SAP Press Office, +49 (6227) 7-46315, CET; +1 (610) 661-3200, EDT; press@sap.com Morgan Mauritz, Burson-Marsteller, +1 (415) 591-4131, morgan.mauritz@bm.com, PDT Jay Devine, Devine & Powers Comm. Group, 215-568-2525, jdevine@devinepowers.com, EDT