Brookshire Grocery Company Stocks Up on SAP

Brookshire Grocery Company Stocks Up on SAP

Leading Operator of Regional Supermarkets Selects SAP® for Retail to Build upon Existing SAP® Solutions and Continue its Tradition of Inspired Customer Service

New York – January 15, 2007 – Demonstrating its ongoing success in the retail industry, SAP AG (NYSE: SAP) today announced that Brookshire Grocery Company has selected SAP for Retail solutions to complement the financials and human resources applications from SAP that the company is successfully running. The end-to-end retail suite will support Brookshire’s strong customer-centric approach by enabling a deeper understanding of its customers’ needs. In the process, Brookshire Grocery Company will replace eight disparate systems to provide a single source of information to its users. The announcement was made at the National Retail Federation (NRF) Conference, being held in New York, NY, January 15-17.

Founded in the 1920s, Brookshire Grocery Company is widely respected for its long tradition of friendly service, clean stores and technological innovation. Headquartered in Tyler, Texas, it has grown into a chain of more than 150 Brookshire, Super 1 Food and Olé Foods supermarkets in Texas, Arkansas, Louisiana and Mississippi. The company also owns two distribution centers, a dairy, a fleet of nearly 350 vehicles, and SouthWest Foods, its private label manufacturing unit.

“SAP continues to be a valued and trusted business partner,” said Marvin Massey, CEO, Brookshire Grocery Company. “We are very pleased with our existing SAP relationship and projects and believe SAP will continue to meet our business requirements well into the future.”

Brookshire is currently running SAP applications for financials, which went live in October 2004, and human resources, which went live in March 2006.

Brookshire will leverage the integrated, end-to-end retail solutions from SAP for merchandise and assortment planning, forecasting and replenishment and point-of-sale data management. As the company undergoes its large business transformation and implements customer-centric category management, it will leverage SAP solutions and expertise to drive the process.

Customers First
Brookshire Grocery Company is known for its customer-centric approach and outstanding customer service. To deliver on this promise, SAP for Retail solutions will help ensure inventory is maintained at the right level. Furthermore, point-of-sale software from SAP will help deliver increased customer service.

“We are confident that SAP will help us get closer to the customer, as we ensure that the right products are on the shelf with the right price that customers want,” said Massey.

Supporting Growth While Driving Efficiencies
The SAP solutions will support Brookshire’s short- and long-term growth plans of expanding into new markets and growing the number of stores over the next five years. By consolidating information onto a single platform, executives will be able to capitalize on new opportunities that anticipate customer needs and offer an inspired shopping experience to all Brookshire customers. Previously, data was scattered across the organization in paper form or in several disparate legacy systems.

“We have long enjoyed an outstanding partnership with Brookshire,” said Jim McMurray, senior vice president, Retail, SAP America Inc. “The fact that Brookshire has again turned to us to run its retail operations on SAP software is validation that retailers of all sizes are turning to SAP to address key areas of revenue growth, customer satisfaction and operational excellence.”

About Brookshire Grocery Company
Brookshire Grocery Company was founded in 1928 by Wood T. Brookshire. Now, in the new millennium, four of his grandsons serve as company presidents and continue the family tradition of putting people first and giving customers the best grocery shopping experience available. Brookshire’s corporate headquarters is in a large complex with distribution facilities, located in Tyler, Texas, the business hub of East Texas. Tyler is located approximately 100 miles east of Dallas and has a population of more than 79,000.

About SAP for Retail
SAP for Retail is a solution portfolio that helps retailers understand their business, anticipate the needs of their business and inspire their customers, employees and shareholders by delivering results. SAP for Retail is an end-to-end set of retail solutions including the development of demand intelligence (through the acquisition and integration of Khimetrics); merchandise management and planning; store operations (through the acquisition and integration of Triversity POS solutions); and base finance and HR solutions. SAP for Retail helps retailers of all sizes to create shopping experiences that their customers will want again and again, by providing the ability to make the right decisions quickly and profitably (Additional information at http://www.sap.com/retail/).

About SAP
SAP is the world’s leading provider of business software*. Today, more than 36,200 customers in more than 120 countries run SAP® applications—from distinct solutions addressing the needs of small and midsize enterprises to suite offerings for global organizations. Powered by the SAP NetWeaver® platform to drive innovation and enable business change, SAP software helps enterprises of all sizes around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP solution portfolios support the unique business processes of more than 25 industries, including high tech, retail, financial services, healthcare and the public sector. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol “SAP.” (Additional information at )

(*) SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

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 “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” 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 (”SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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