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SAP and Tecnomatix Sign Global Strategic Agreement

Aug 01, 2001

WALDORF, Germany and NASHUA, New Hampshire - August 1, 2001 - SAP AG (NYSE: SAP) and Tecnomatix Technologies, Ltd. (Nasdaq: TCNO), today announced that they have entered into a global strategic development and marketing agreement to integrate Tecnomatix eMPower� Manufacturing Process Management solutions with mySAP� Product Lifecycle Management (mySAP� PLM). SAP is the world�s leading provider of e-business software solutions; Tecnomatix Technologies is the leading provider of manufacturing process management (MPM) software solutions.

mySAP PLM, part of the suite of cross-industry solutions within the mySAP.com� e-business platform, creates a collaborative environment in which users can manage, track and control all product-related information over the complete product and asset life cycle. The integrated Tecnomatix and SAP� solution is intended to enhance collaboration and sharing of information across product design, production planning, engineering and execution. Manufacturing engineers will be able to leverage engineering product structures within the mySAP PLM integrated product and process engineering (iPPE) model to create an electronic bill of processes (eBOP) in the Tecnomatix MPM environment. The Tecnomatix eBOP, containing a full description of how the product is to be manufactured, can then be incorporated back into mySAP PLM to be passed on to production. The combined mySAP PLM and Tecnomatix solution will enable engineers to work concurrently on the product definition, design and manufacturing process planning, reducing the total planning cycle and speeding ramp-up to production.

�Delivering superior products to market within extremely short timeframes is a key success factor for companies� said Claus Heinrich, Executive Board Member of SAP AG. �The biggest time savings in the product life cycle can be achieved in the ramp-up to volume phase between design and full production. The powerful combination of mySAP PLM with its smooth integration to Supply Chain Management, together with the Tecnomatix eMPower solution for manufacturing process management, empowers our customers to support even highly accelerated product life cycles, giving them the flexibility to react quickly on short-term customer demand changes.�

�This relationship is significant to manufacturers who believe their competitive advantage is gained through effective management of product and process life cycles,� said Harel Beit-On, President and Chief Executive Officer. �The SAP-Tecnomatix offering will create new opportunities for companies by linking process models to product data. This relationship is a major step forward in our long-standing strategy of working with industry-leading software and system integration companies. We are extremely pleased to have this agreement with SAP, whose worldwide presence, industry coverage and long list of loyal customers will help us to bring manufacturing process management to more manufacturers.�

Both SAP and Tecnomatix will cooperate on the development, marketing, support and maintenance of the integrated Tecnomatix eMPower manufacturing process management and mySAP PLM solution. The integration is expected to be ready for shipment at the beginning of 2002.

For more information, press only: Sonja Filser, SAP AG, +49 6227 7-47427, press@sap.com Jim Dever, SAP America, Inc., +1 (610) 661-2161, james.dever@sap.com Sarah Wilson, Waggener Edstrom, +1 (503) 443-7000, sarahw@wagged.com SAP Americas Press Office, +1 (610) 661-3200 Bill Siegel, Tecnomatix , +1(603) 891-4150, bsiegel@tecnomatix.com Ed Daly, Miller/Shandwick Technologies, +1 (617) 351-4161, edaly@miller.shandwick.com Jody Burfening, Lippert/Heilshorn & Assoc., +1 (212) 838-3777, jbs@lhai.com

About Tecnomatix Technologies, Ltd. Tecnomatix Technologies, Ltd. (Nasdaq: TCNO), is the world�s leading provider of manufacturing process management software for the electronics, automotive, aerospace and heavy equipment industries. The company�s eMPower� software enables global manufacturing customers to build the best production strategies to succeed in their increasingly complex environments. Tecnomatix applications run on an open platform providing a collaborative environment for authoring, simulating and managing manufacturing processes across the extended enterprise and its suppliers. The company, founded in 1983, has offices and distributors in North America, Europe, the Pacific Rim and Latin America. Additional information about the company can be found at http://www.tecnomatix.com

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 15,000 companies in over 120 countries run more than 36,000 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 at http://www.sap.com).

-------------------------------------------------------------------------------- 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 �believe,� �estimate,� �intend,� �may,� �will,� �expect,� and �project� 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 (the �SEC�), including the SAP Annual Report on Form 20-F for 2000 filed with the SEC on March 28, 2001. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Certain statements made herein that use the words �estimate,� �project,� �intend,� �expect,� �believe� and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance or achievements of Tecnomatix to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, changes in the level of activity in the automotive industry, decline in demand to the Company�s products, inability to timely develop and introduce new technologies, products and applications and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company�s business, reference is made to the Company�s reports filed from time to time with the Securities and Exchange Commission.

Copyright � 2001 SAP AG SAP, the SAP logo, mySAP.com, mySAP and all other SAP products and services mentioned herein are trademarks or registered trademarks of SAP AG in Germany and several other countries. Other product or service names mentioned herein are the trademarks of their respective owners.

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