WALLDORF, Germany - April 21, 1999 - SAP AG (NYSE: SAP), the world's leading provider of Enterprise Resource Planning software, today announced its sales for the quarter ended March 31, 1999. This is the first quarter in which financial results are reported in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP). The Company has issued an additional press release providing information on the impact of adopting U.S. GAAP. Revenues grew 22% to €1,076 million (1998 Q1: €882 million)(US $1,163 million*). Net income was unchanged at €98 million ($106 million); pretax profit for the quarter fell 1% to €172 million (1998: €173 million)($186 million).

"The first quarter results are better than expected, taking into account the effects of adopting U.S. GAAP, careful management of expenditures and headcount increases, as well as several major contracts in Europe signed during the last week of the quarter," said Henning Kagermann, SAP co-chairman and CEO. "However, we expect that the positive effects on the quarterly results will even out over the course of the year, so there should be little difference between results prepared under U.S. and German GAAP on an annual basis," added Kagermann.

"We still anticipate a 20 to 25% increase in sales for fiscal 1999, with the pretax profit margin improving up to one percentage point higher than last year's 21.6% after U.S. GAAP," concluded Kagermann.

Adoption of U.S. GAAP
SAP adopted U.S. GAAP effective January 1, 1999 and restated the 1998 fiscal results for comparative purposes. Contractual terms for transactions consummated during the first quarter of 1999 required significantly less revenue deferrals than the comparable period last year; thus, revenues are approximately €40 million higher than they would have been if recorded under German GAAP. In accordance with U.S. GAAP net unrealized losses on forward coverage contracts were charged directly to shareholders' equity. Together these two effects account almost completely for the difference between the pretax results calculated using U.S. and German GAAP. Under German GAAP, revenues would have increased 20% and pretax profit would have decreased 19%.

* US dollar equivalents are provided for reader convenience at the March 31, 1999 exchange rate of €1 = US$ 1.0808

Notwithstanding adoption of U.S. GAAP, the decline in the value of the SAP preferred share price required the reversal €15.5 million of expenses recorded in 1998 for the employees' stock appreciation rights program (STAR).

Strong Growth in Europe
The Europe, Middle East, and Africa (EMEA) region generated the biggest revenue growth, increasing 36% to €529 million (1998: €390 million). In the Americas, revenues increased 14% to €448 million (1998: €394 million); at like-for-like exchange rates, sales in the Americas region would have grown 25%. In the Asia-Pacific region, first quarter sales remained at last year's level of €99 million, an increase of 3% at last year's exchange rates. The 22% overall growth in sales revenue would have been six percentage points higher at 1998 first quarter exchange rates.

Kevin McKay, CEO and President of SAP America, said, "While concern over the Y2K issue still persists, we have noticed increased interest in SAP's R/3 and New Dimension products as our inter-enterprise operability becomes more prominent because of the Internet."

Increase in Revenues
Product sales, up 7% to €615 million (1998: €575 million), were the largest contributor to revenue in the first quarter. Consulting revenue increased 65% to €343 million (1998: €209 million). Revenue from training rose 19% to €110 million (1998: €92 million). Product revenues as a percentage of total first quarter revenues decreased from 65% to 57%.

"These impressive results again demonstrate SAP's great potential in the enterprise resource planning market," stated Hasso Plattner, SAP co-chairman and CEO. "It also confirms that our focus on the user as well our strategic Internet orientation are right for the future. "

Highlights of the First Quarter
Highlights included:

• Business Information Warehouse (SAP BW) Version 1.2B was delivered at the end of March. Approximately 470 systems have now been shipped worldwide. Customers include Hercules Inc. (United States), Clariant AG (Switzerland), and RWE AG (Germany).

• The new SAP Business-to-Business Procurement (SAP B2B Procurement) software became generally available at the end of March. Robert Bosch GmbH (Germany) is one of the first companies to use this software for procuring goods and services via the Internet.

• SAP's supply chain management software SAP Advanced Planner and Optimizer (SAP APO) was first delivered at the end of 1998. More than 110 systems have now been delivered worldwide. Customers include Colgate-Palmolive Inc. and Motts (United States); Fischerwerke and Deutsche Goodyear (Germany).

• The first of SAP's customer relationship management software products, SAP Sales and SAP Service, were delivered on time at the end of March to the first 13 customers.

• In March, results from EnjoySAP, the usability initiative, were presented to an enthusiastic public in Palo Alto, CA and at CeBIT in Hanover, Germany. EnjoySAP addresses user requirements which have resulted in a redesign of the software. It is easier to learn, quicker to work with, and more adaptable to the way individuals work.

Key Figures
(in €millions)

	Q1 1999	Q1 1998	Change	% Change
Total Revenue	1,076	882	194	+ 22
Income before income taxes	172	173	- 1	- 1
Net income	98	98	0	0
Number of employees (March 31)	20,406	15,010	5,396	+ 36
- thereof Germany	8,045	6,224	1,821	+ 29

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the Private Securities Litigation reform Act of 1995. Words such as "believe", "expect" and "project" as they relate to the company are intended to identify such forward-looking statements. The Company undertakes no obligation publicly to 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 the Company's future financial results are discussed more fully in the Company's filings with the Securities and Exchange Commissions (the "SEC"), including its most recently filed Form 20-F and Form F-1, as filed with the SEC on June 22, 1998, and in Form 20-F for 1998 that is expected to be filed with the SEC in April 1999.

SAP AG preference and common shares are listed on the Frankfurt Stock Exchange as well as a number of other exchanges. In the US, SAP's American Depositary Receipts (ADRs), each worth one-twelfth of a preference share, trade on the New York Stock Exchange under the symbol 'SAP'. SAP is a component of the DAX, the index of 30 German blue chip companies.

Consolidated Income Statements 1st Quarter 1999
SAP Group (in €millions)

			Q1 1999	Q1 1998	Change
	Product revenue		615	575	7%
		Consulting revenue	343	209	65%
		Training revenue	110	92	19%
	Service revenue		453	301	50%
	Other revenue		8	6	43%
Total revenue			1.076	882	22%
	Cost of product		-96	-77	25%
	Cost of service		-389	-263	48%
	Research and development		-138	-108	28%
	Sales and marketing		-225	-204	10%
	General and administration		-42	-48	-12%
	Other income/expenses, net		-12	-12	0%
Total operating expense			-902	-712	27%
Operating income			174	170	2%
Other non-operating income/expenses, net			-6	0	n.a.
Finance income, net			4	3	20%
Income before income taxes			172	173	-1%
Income taxes			-74	-75	-1%
Net income			98	98	0%
DSO (in days)			108	100

 

Consolidated Balance Sheets 1st Quarter 1999
SAP Group
(in €millions)

ASSETS
		03/31/1999		12/31/1998
Intangible Assets		85		75
Property, plant and equipment		678		645
Financial Assets		227		184
FIXED ASSETS		990		904
Inventories/ Accounts receivable and other assets		1.786		1.676
Liquid assets		782		670
CURRENT ASSETS		2.568		2.346
DEFERRED TAXES		199		114
PREPAID EXPENSES AND DEFERRED CHARGES		56		21
TOTAL ASSETS		3.813		3.385
SHAREHOLDERS' EQUITY AND LIABILITIES
		03/31/1999		12/31/1998
SHAREHOLDERS' EQUITY		1.950		1.818
MINORITY INTEREST		7		7
RESERVES AND ACCRUED LIABILITIES		569		653
OTHER LIABILITIES		631		600
DEFERRED INCOME		656		307
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES		3.813		3.385