News release

HP and SAP to Jointly Deliver Supply Chain Management Solutions

Customers to Benefit from More Efficient Design and Implementation on a Global Scale

PALO ALTO, Calif., and WALLDORF, Germany, May 30, 2001

Hewlett-Packard Company (NYSE:HWP) and SAP AG (NYSE ADR:SAP) today announced an expanded relationship focused on improving supply chain management (SCM) and supplier management capabilities for large global customers and their respective trading partners.

HP also has entered into agreements to become a Most Valued Partner (MVP) of SAPMarkets Partner Program. These initiatives will help customers to implement a holistic approach to solving their SCM and supplier management capability needs.

Managing supply chains is becoming increasingly important to large global enterprises. HP and SAP intend to provide customers the latest SCM technologies -- supported by a robust Internet infrastructure with access to vital business data -- to create a fault-tolerant supply network.

HP and SAP plan to cross-train sales teams and consultants to design, develop and deliver solutions that combine mySAP™ Supply Chain Management (mySAP SCM) software components and HP hardware and middleware for global enterprises in the technology, consumer products, automotive, aerospace and defense, and engineering and construction industries. Global solution centers have been created at HP and SAP locations to pre-configure and pre-test components for easier and faster implementation. With access to comprehensive, broad-based solutions, customers can realize faster deployment times and quicker return on their investments regardless of their existing infrastructures. According to Karen Peterson, research director for SCM enterprise and supply chain management at Gartner, "The market for supply chain management solutions is expected to grow by 25-35 percent annually over the next five years."

As a result, many companies, such as BMW, are turning to HP and SAP -- because of their specific industry and domain expertise -- to maximize the efficiency of their supply chains and achieve high levels of business.

"With our suppliers worldwide, we need the visibility and flexibility to track critical information in real time," said Guenter Klamer, senior vice president, IT and Logistics, BMW. "Together, SAP and HP are able to offer us a supply chain solution and an infrastructure that meets our always-on needs, and we expect to achieve much better visibility into our key business metrics and to anticipate the market need to plan our supply chain much more accurately."

In addition to serving customers like BMW, HP has successfully optimized their own factories' supply chain processes using mySAP.com® solutions. This has helped HP achieve markedly reduced manufacturing cycles and improved on-time customer delivery. HP's global implementation of mySAP.com will add simulation capabilities to already efficient internal processes and will support HP's factories worldwide.

"Our alliance with SAP enables both companies to deliver a strong supply chain solution to the market," stated Ann Livermore, president, HP Services Organization. "With a robust Internet infrastructure and mySAP SCM, HP customers benefit from quick access to information about orders, forecasts, production plans and key performance indicators."

"SAP looks forward to extending our relationship with HP and leveraging its services organization as we continue to bring forward the benefits of mySAP SCM that customers have come to expect," said Claus Heinrich, member, SAP Executive Board. "Together, SAP and HP will be delivering SCM solutions that are designed to exceed our customers' expectations, increasing sales revenue and simplifying operational issues by streamlining their supply chain."

About SAP

SAP is the world's leading provider of e-business software solutions. Through the mySAP.com® e-business platform, people in businesses around the globe are improving relationships with customers and partners, streamlining operations, and achieving significant efficiencies throughout their supply chains. Today more than 13,000 companies in over 100 countries run more than 30,000 installations of SAP® software. With subsidiaries in over 50 countries, the company is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." Additional information can be found at www.sap.com.

About SAPMarkets

SAPMarkets is the exchange company of SAP (NYSE: SAP) and delivers solutions that automate business processes across boundaries. Based in Palo Alto, Calif., SAPMarkets currently enables over 1,100 companies worldwide to use the Internet for greater agility, precision and profitability. SAPMarkets can be found at www.sapmarkets.com.

About HP

Hewlett-Packard Company -- a leading global provider of computing and imaging solutions and services -- is focused on making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and solutions for an Internet infrastructure that's always on.

HP had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Information about HP and its products can be found on the World Wide Web at www.hp.com.

SAP, the SAP logo, mySAP, mySAP.com and other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries.

This press release contains forward-looking statements based on beliefs of SAP management. Any statements contained in this press release that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should," "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. Such statements reflect the current views and assumptions of SAP, and all forward-looking statements are subject to various risks and uncertainties that could cause results to differ materially from expectations. The factors that could affect future SAP financial results are discussed more fully in SAP filings with the U.S. Securities and Exchange Commission (the "SEC"), including the SAP Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. SAP undertakes no obligation to publicly update or revise any forward-looking statements.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of earnings, revenues, or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the ability of HP to retain and motivate key employees; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to the annual report on Form 10-K for the year ended Oct. 31, 2000, and subsequently filed reports. HP does not intend to update these forward-looking statements.