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SAP Makes Its Home in China, Focusing on Innovation and Sustainable Growth for the Long Term

SAP Continues to Invest and Grow in China, Expanding Coverage to New Industries

BEIJING - SAP AG (NYSE: SAP) today announced continued investment and growth in China, underscoring the company's long-term commitment to the world's second-largest economy. SAP is enabling Chinese customers — large, midsize and small, state owned, private, public sector and multinationals — to grow, scale and globalize, as well as make the transition to a knowledge-based economy, which is a key facet of China's 12th five-year plan. The announcement was made at China SAPPHIRE, being held July 26-27 in Beijing.

Last November, SAP announced it would spend more than US $2 billion in China through 2015. The company this week announced its best quarterly performance ever in China, with more than 30 percent growth in software license revenue.

At China SAPPHIRE, SAP announced plans to implement the SAP Startup Focus program in China. Through the program, SAP will help Chinese startup companies scale their business through the adoption and development of new applications on the SAP HANA® platform.

SAP also announced that it is actively building out its customer and partner ecosystem, with an agreement establishing Huawei Technologies Co., Ltd., a leading information and communication solutions supplier, as the first Chinese SAP global technology partner. Through this partnership, SAP and Huawei will deepen technical integration and support, build an interoperability competency center and carry out joint sales and marketing activities worldwide. In total, SAP has extended its number of local partners in China to 120 and its trained consultants to nearly 10,000.

Additionally, SAP today announced the expansion of its cooperation with China Telecom Corporation, the world's largest fixed-line operator. The cooperation aims to promote platforms for mobile development and mobile device management, and extend SAP and China Telecom's partnership on cloud-based enterprise-class products and services.

"Our strategy in China is simple: It's long-term commitment and customer focus," said Robert Enslin, president, Global Customer Operations, and member of the SAP Global Managing Board. "We intend to make China a top 3 market for SAP globally. Many of China's biggest companies are our customers and we will continue to support their global growth and competitiveness with the latest innovations from SAP. To make this a reality, we have expanded our sales force by 50 percent this year."

In 2012, SAP has opened new offices in Beijing, Wuhan and Shenzen. Currently, there are 3,500 SAP employees in China. SAP is supporting Chinese companies in their aspirations toward more sustainable growth, long-term business transformation and entering both new markets and new industries.

Many of the solutions implemented by the 4,000 SAP customers in China are developed in the country, particularly in the areas of business applications, analytics, database, mobile and cloud. More than 2,000 engineers based in the SAP Labs location in Shanghai develop applications in the areas of large, small and midsize enterprises, business intelligence and analytics, and for new technologies, such as in memory, mobile and cloud.

"We see growth and opportunity in China, and we have made it a permanent home," said Hera Siu, president, SAP China. "We are excited to be here and build on our 20-year history in China."

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About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 195,000 customers (includes customers from the acquisition of SuccessFactors) to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

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