Premier Sporting Goods Chain Sport Chalet Scores with SAP

NEWTOWN SQUARE, Pa., Dec. 12 /PRNewswire-FirstCall/ -- SAP America Inc., a subsidiary of SAP AG , today announced that Sport Chalet, Inc. , has selected the SAP for Retail solution portfolio to support its ambitious growth strategy of expanding into existing and new markets. Joining a growing number of retailers that have chosen SAP over Oracle to drive competitive advantage, Sport Chalet will replace multiple disparate, home-grown merchandising and finance systems with the newest release of mySAP(TM) ERP to provide accurate, real-time information and help drive compliance with Sarbanes-Oxley. BearingPoint , one of the world's largest management and technology consulting firms, will work with Sport Chalet to implement the new system.

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Founded in 1959, Sport Chalet is a leading operator of full-service, specialty sporting goods stores in California, Nevada and Arizona. Throughout its 45 locations, the company offers more than 50 services for the serious sports enthusiast, including backpacking, canyoneering and kayaking instruction; custom golf club fitting and repair; snowboard and ski rental and repair; SCUBA training and certification; SCUBA boat charters; team sales; racquet stringing; and bicycle tune-up and repair.

"In today's extremely competitive landscape of sporting goods and apparel, it is essential to respond quickly to market changes and opportunities," said Howard Kaminsky, CFO, Sport Chalet. "We selected SAP over Oracle and other providers as a result of SAP's coherent integration strategy and its ability to support us as we continue to implement our store expansion plans. SAP is partnering with us to provide the services we need, on a schedule that fits smoothly into our plans, and at a cost that is appropriate for a company of our size. SAP solutions will allow us to pull together core business processes around merchandising, demand and revenue planning, supply chain operations and store operations. We will be in a better position to serve our customers, as we strive to remain the nation's most desired retailer. To us, SAP is the Gold standard for integrated solutions for retailers."

Supporting Growth While Improving Agility and Efficiency

SAP for Retail solutions will support Sport Chalet's growth plans of expanding into new markets and increasing its number of stores over the next five years. With enterprise-wide information consolidated onto a single platform, executives will be able to evaluate and capitalize on new opportunities quickly, make faster and more informed decisions and, ultimately, better serve Sport Chalet's customers. Approximately 3,800 employees throughout Sport Chalet will use the SAP solutions when the rollout begins in the second half of 2007.

Integration of Core Retail Functions

The SAP rollout will integrate core merchandising and administrative operations from the storefront to the corporate back-office, providing better insight into sales performance, merchandising and financials. Sport Chalet intends to use SAP for Retail solutions to manage its business processes, to improve customer service and to ensure that products get to customers faster and more efficiently. The SAP solution set for the retail industry will provide a coordinated approach to allow Sport Chalet to manage its vendors, reach its long-term growth plans, and gain a holistic view of its finances, including internal tracking, order management and accounts payable.

"With more than thirty years' experience and expertise from relationships with more than 3,800 retailers worldwide, SAP understands how to help retailers such as Sport Chalet gain a strategic and competitive advantage going forward," said Jim McMurray, senior vice president, Retail, SAP America Inc. "SAP is teaming with our customers to maximize efficiency for retailers of all sizes and to allow them to make faster and more-informed merchandising and operations decisions as well as to address key areas of revenue growth, customer satisfaction and operational excellence."

About Sport Chalet, Inc.

Sport Chalet, founded in 1959 by Norbert Olberz, is a leading operator of full service specialty sporting goods stores in California, Nevada and Arizona. The Company offers over 50 services for the serious sports enthusiast, including backpacking, canyoneering, and kayaking instruction, custom golf club fitting and repair, snowboard and ski rental and repair, SCUBA training and certification, SCUBA boat charters, team sales, racquet stringing, and bicycle tune-up and repair throughout its 45 locations. The address for Sport Chalet's web site is http://www.sportchalet.com/.

About BearingPoint, Inc.

BearingPoint, Inc. is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. Based in McLean, Va., the firm has over 17,000 employees and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. For nearly 100 years, BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. For more information, visit the Company's website at http://www.bearingpoint.com/.

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. SAP for Retail is an end-to-end set of retail solutions including the development of demand intelligence (through the acquisition and integration of Khimetrics); 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 36,200 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: Evan Welsh, +1 (610) 661-1949, evan.welsh@sap.com, EST SAP Press Office, +49 (6227) 7-46315, CET; +1 (610) 661-3200, EST; press@sap.com Morgan Mauritz, Burson-Marsteller, +1 (415) 591-4131, morgan.mauritz@bm.com, PST Melissa Merrill, Financial Dynamics (for Sport Chalet), +1 (212) 850-5741, Melissa.merrill@fd.com, EST