Press Release

Virgin Entertainment Group Selects SAP for Retail to Automate and Integrate Megastores...
Mon Jan 16, 2006 9:00 AM ET
Virgin Entertainment Group Selects SAP for Retail to Automate and Integrate
Megastores in the United States
Robust, Flexible Point-of-Sale Solution to Enable Virgin's Music and
Entertainment Stores to Efficiently Manage Inventory and Pricing Rules, Apply
New Discounts, Add Promotions and Adapt to Sales Tax Changes

NEW YORK, Jan. 16 /PRNewswire-FirstCall/ -- Amid growing evidence of its global leadership in providing solutions to the world's premier retailers, SAP AG (NYSE: SAP) today announced that Virgin Entertainment Group, the world's leading multichannel music and entertainment retailer, has selected an SAP Triversity point-of-sale (POS) solution to automate and integrate the company's Virgin Megastores in the United States. The solution will enable Virgin employees to efficiently manage inventory and pricing rules, apply new discounts, add promotions and adapt to sales tax changes without the use of custom programming. The announcement was made at the National Retail Federation (NRF) Conference, being held in New York, January 15-17.

Virgin chose this SAP Triversity POS offering after an extensive search for a new POS software solution to replace the company's outdated, inflexible software. Virgin needed out-of-the-box capabilities along with parameter-driven flexibility, and the SAP Triversity POS solution was the ideal choice. With hundreds of implementations around the world, SAP Triversity POS solutions are the most proven, feature-rich client/server POS software in the industry. The SAP Triversity POS solution includes the base functionality that Virgin required, while offering the retailer virtually unlimited flexibility through a powerful parameters engine that contains more than a half-million
options.

"The POS is our revenue stream, so Virgin needed a proven, stable application that not only met our business requirements but solidly positioned us for the future," said Robert Fort, director of information technology, Virgin Entertainment Group, North America. "With its built-in functionality
and easy configurability, the SAP Triversity POS solution was the right choice. The SAP solution will lower the total cost of ownership of our store systems and provide us with a flexible, long term POS system while ensuring that products are consistently sold at the right price."

Pricing and discounting capabilities in the SAP Triversity POS solution, including support for mix/match and multitier pricing, will help ensure accurate pricing at the point of sale and serve as a fraud deterrent. The solution reduces manual data processes and eliminates the opportunity for
error or fraudulent activity. The SAP Triversity POS solution will enable Virgin to automate processes, set multitier pricing rules and eliminate the need for cashier intervention at the point of sale.

"Virgin is one of the world's most recognized and admired brands, and the SAP(R) for Retail solution provides a rock-solid foundation to drive the company's future growth and innovation," said Jim McMurray, senior vice president, Retail, SAP America, Inc. "SAP will provide Virgin with a flexible, scalable platform for growth, while improving customer service and in-store capabilities. The SAP Triversity POS solution will help Virgin focus on customers and on becoming a best-run agile retail business."

About Virgin Entertainment Group
Virgin Entertainment Group is the world's leading multi-channel music and entertainment retailer, providing customers with a range of superior entertainment experiences through a family of integrated Virgin-branded businesses. The "category killer" Virgin Megastores and Virgin Megastore Online at www.virginmega.com are integral parts of a strategy to provide entertainment customers with what they want, how they want it, and when they want it. For more information, or to check out the location of the nearest Virgin retail, go to www.virginmega.com or www.virginmegamagazine.com

About SAP for Retail
SAP for Retail is a solution portfolio that combines mySAP(TM) Business Suite solutions with a broad set of integrated retail applications to help companies profitably serve consumer demand across multiple channels. With the acquisitions of Triversity and Khimetrics, SAP's end-to-end solution now includes point-of-sale (POS) and demand intelligence capabilities. Today, more
than 2,900 retailers worldwide are SAP customers, more than 450 of which are using industry-specific applications from the SAP for Retail solution portfolio. Built on the open architecture of the SAP NetWeaver(R) platform, SAP for Retail includes core capabilities for financial management, human resources, supplier relationship management and customer relationship management, as well as support for industry-specific merchandise management and planning, store and channel management, demand forecasting, replenishment, sophisticated allocation, workforce management, POS data management and RFID.

(Additional information at http://www.sap.com/retail )

About SAP
SAP is the world's leading provider of business software solutions*.
Today, more than 29,800 customers in over 120 countries run more than 100,600 installations of SAP(R) software -- from distinct solutions addressing the needs of small and midsize enterprises to suite solutions for global organizations. Powered by the SAP NetWeaver(R) platform to drive innovation and enable business change, mySAP(TM) Business Suite solutions are helping
enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. 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 http://www.sap.com ) (*) SAP defines business software solutions as comprising enterprise resource planning and related software solutions 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.

NOTE: SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 800-872-1SAP (800-872-1727)

For more information, press only:
Evan Welsh, 610-203-9742, evan.welsh@sap.com, EST
SAP Press Office, +49 (6227) 7-46315, CET; 610-661-3200, EST;
press@sap.com
Sabine Hollstein, Burson-Marsteller, +49 69 238 09-55,
sabine_hollstein@de.bm.com, EST

SOURCE SAP AG

For customers interested in learning more about SAP products, Global Customer Center, +49-180-534-34-24, or United States Only, +800-872-1SAP (800-872-1727), or For more information, press only, Evan Welsh, +1-610-203-9742, or evan.welsh@sap.com, EST, or SAP Press Office,
+49-6227-7-46315, CET, or +1-610-661-3200, EST; or press@sap.com, all of SAP; or Sabine Hollstein of Burson-Marsteller, +49-69-238-09-55, or sabine_hollstein@de.bm.com, EST, for SAP

Profiles

Virgin Enterprises Limited