SAP Comments on Planning of Works Council Election

SAP Comments on Planning of Works Council Election



WALLDORF, Germany - March 14, 2006 - SAP AG (NYSE: SAP) today issued a statement regarding the planning of a works council election. On March 2, SAP AG employees voted against the creation of a committee to conduct a works council election by an overwhelming majority. The SAP Executive Board felt obliged to evaluate all available options to ensure compliance with this clear mandate from SAP employees.

An extensive evaluation of the legal situation in Germany has shown that the current federal laws do not provide the option for SAP to establish an employee representation system aligned with its traditional practices or to prevent the imposition of an election committee by a court ruling.

As such, the executive board welcomes the decision today by the SAP employee representatives in the supervisory board to organize a works council election themselves. The employee representatives will hold a company meeting in the coming weeks with the aim of electing a committee to conduct an election for the 9,000 colleagues at SAP AG’s sites in Walldorf and St. Leon Rot.

“It is important now that we make the best possible use of the options available to us within existing corporate law,” said Claus Heinrich, member of the SAP Executive Board.

“If SAP is to have a works council, then it should be a works council that is representative of the heart of the company,” said SAP CEO Henning Kagermann. “We have a duty to maintain our unique company culture and values.”

Statement on European Company Structure
The executive board would like to clarify that there are no plans at present to adopt a European corporate structure. Since fall 2005, the board has been evaluating the pros and cons of converting SAP AG into a European corporation. This evaluation is unrelated to the discussion of creating a works council.