SAP AG AND WEBMETHODS TO DELIVER XML-BASED
E-COMMERCE SOLUTIONS

SAP to Incorporate webMethods XML Technology
Into SAP™ B2B Procurement™

NICE, France, and FAIRFAX, VA, — May 3, 1999 — Today at SAPPHIRE^®’99 Nice, the SAP European user conference, SAP AG, the world’s leading provider of enterprise business solutions, and webMethods, Inc., the leading provider of XML-based solutions for business-to-business e-commerce and integration, announced an agreement to incorporate webMethods’ XML technology into the SAP™ Business-to-Business Procurement™ (SAP B2B Procurement™) solution. This integration further enables SAP customers to leverage the power and flexibility of XML to seamlessly integrate their key business processes with those of their customers, partners and suppliers for enhanced efficiency and improved cost-effectiveness. The agreement also includes technology licensing, joint development and partnering on industry standards.

"SAP B2B Procurement benefits the entire enterprise by reducing the number of steps in the procurement process, resulting in reduced costs and faster cycle time," said Peter Zencke, executive board member, SAP AG. "We believe that XML is and will continue to be a primary technology enabler for business-to-business e-commerce and integration. The use of webMethods’ XML-based solutions makes connecting businesses with each other faster, easier and more efficient."

SAP will initially incorporate the webMethods B2B™ product into SAP Business Connector technology to power XML-based communications between buyers and suppliers in the SAP B2B Procurement solution. The webMethods B2B product provides XML-based application integration across organizational boundaries and enables direct access to Web-hosted supplier catalogs. SAP B2B Procurement uses XML to link buyers and suppliers and facilitates all the processes associated with the procurement of Maintenance, Repair and Operations (MRO) of both goods and services. It effectively organizes and automates MRO purchasing by moving the buying process to the corporate employee’s desktop.

In addition, SAP plans to XML-enable the full set of Business Application Programming Interfaces (BAPIs), further enabling the SAP™ R/3^® and SAP B2B Procurement for business-to-business integration with applications and systems from a wide array of vendors.

"SAP has a clear and compelling vision of how XML will fundamentally enhance the way in which businesses do business with one another," said Phillip Merrick, president and CEO of webMethods, Inc. "We are delighted to work with SAP as a key partner to help deliver on this vision."

"With this relationship, SAP and webMethods are offering a compelling and comprehensive strategy for managing the heterogeneous system-to-system integration challenges that characterize business-to-business e-commerce initiatives," said David Alschuler, vice president of E-Business at Aberdeen Group. "This announcement represents an important step in the realization of the potential of XML technology to tighten the links between partners in the supply chain."

webMethods, Inc. Named an SAP Development Partner
webMethods will join a small group of key vendors that work closely with SAP on joint development projects. It will work with SAP to develop future XML-based solutions for business-to-business electronic commerce and application integration. The two companies have also agreed to make public certain XML specifications for interfacing to SAP products.

About SAP
SAP, the world’s largest enterprise software company, provides companies of all sizes with business solutions that deliver A Better Return on Information^SM. SAP products and services integrate an organization from financials and human resources to manufacturing and sales and distribution. This integration enables companies to optimize supply chains, strengthen customer relationships, and make more accurate management decisions. Founded in 1972, SAP today leverages a global network of people, processes and products to assure customer success. SAP is listed on several exchanges including the Frankfurt stock exchange and NYSE under the symbol "SAP." The SAP World Wide Web site can be found at http://www.sap.com.

About webMethods
Named one of Red Herring’s 1998 Top 50 Privately Held Companies, webMethods is the leading vendor of XML solutions for business-to-business e-commerce and integration. webMethods B2B products enable corporations to use the open standards of the Web for interenterprise applications such as supply chain integration and automated procurement. webMethods delivers real business value to companies that want to leverage their investments in legacy, ERP and Web-hosted applications to link their business processes with those of their key business partners. webMethods’ award-winning products are in use at leading companies including DHL Airways, Hewlett-Packard, Dun and Bradstreet, Cisco Systems, 3Com, Orbital Sciences Corp., and Dresdner Kleinwort Benson.

Founded in 1996, venture-backed webMethods, Inc. is based in Fairfax, Va., with offices in San Francisco; New York; Boston; Dallas; Columbus, Ohio; and Chicago.

Those interested in more information can contact webMethods Inc., 3975 University Drive, Suite 390, Fairfax, VA 22030, phone (703) 352-8501, fax (703) 352-0370, e-mail info@webMethods.com, or Web www.webmethods.com.

webMethods and webMethods B2B are trademarks of webMethods, Inc.

SAP, SAP Business-to-Business Procurement, SAP B2B Procurement, SAPPHIRE, R/3 and all other SAP product or service names referenced herein are trademarks or registered trademarks of SAP AG.

Other product and company names herein may be trademarks of their respective owners.

© Copyright 1999, SAP AG