SAP Enhances Strategic Partnership with Neusoft

SAP & Neusoft Join Hands to Expand China Management Solution Offerings

BEIJING, China -14:00, May 22, 2006-China s leading software and solution provider, Neusoft Group, announced today to launch a broadened, enhanced strategic partnership with SAP AG (NYSE: SAP), the world s leading provider of business software in Beijing. The partnership will deepen and upgrade the cooperation between the two companies, further extending management solution offerings for China s enterprises by integrating and leveraging competitive advantages of both sides. As part of the agreement, SAP will become a strategic investor of Neusoft Group. The partnership and investment agreement was announced and signed by SAP AG CEO Prof. Dr. Henning Kagermann and Neusoft Chairman and CEO Dr. Liu Jiren at a ceremony conducted this morning in Beijing.

Under the agreement, Neusoft will launch a dedicated SAP practice and expand its SAP training program and its development of solutions based upon the SAP Best Practices family of software offerings. Over the next two years, Neusoft will more than triple its dedicated SAP staff and draw upon its deep university ties and nine dedicated training centers to train and certify a growing number of SAP customers, partners and independent consultants.

Neusoft will also expand its existing value-added reseller (VAR) partnership for mySAP All-in-One solutions in China, and will develop and distribute micro-vertical solutions built upon SAP Best Practices and designed for SMEs in China s manufacturing industries. SAP and Neusoft will also pursue joint opportunities in China s public sector, integrating powerful SAP new technologies to Neusoft s solutions.

The agreement brings the cooperation between both sides a big step forward from their former relationship started since 2000, which will focus on R&D and marketing of management solutions as well as HR training by streamlining and integrating their respective competitive advantages and competence. Ranked as the world s leading provider of business software, SAP is a strong power in providing customers with comprehensive service inclusive of development, implementation, consulting and etc.

based on its in-depth knowledge & understanding of China s enterprises. Neusoft Group, recognized as the most renowned software and solution provider in China, offers a wide range of solution products to its over 8,000 large customers from across government bodies, social infrastructure, and enterprises.

It operates one of China s largest and best known IT training academies and software outsourcing businesses, giving it a cutting-edge advantage in courseware development. It also has strong technical expertise and implementation experience in a range of vertical industries. Besides, Neusoft maintains a strong, nationwide distribution & service network in more than forty locations across the country.

We believe that software is becoming an integral part of society and daily life, and that this is changing the way companies in China operate, said Neusoft Chairman and CEO Mr. Liu Jiren. As Chinese small and medium-sized businesses become more aggressive users of ERP technology, we see opportunities for expanded training and solution offerings in several industries. Our partnership with SAP will help us to make the most of those opportunities and deliver powerful solutions to customers across the country.

Much of China s current economic dynamism is being driven by small and medium-sized companies that have the motivation and drive to succeed and the nimbleness to react to a fast-changing marketplace, said SAP AG CEO Dr. Henning Kagermann. This cooperation will bring together SAP s technology and Neusoft s nationwide network to ensure that China s SMEs have access to IT training and solutions that can help them to stay competitive and to seize global opportunities no matter where in the country they are located.

SAP expects demand for ERP-based solutions in the Chinese SME market to continue to outgrow the demand among large enterprises over the next several years. Much of the SME market still remains untapped, leaving significant growth opportunities.

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About Neusoft
Neusoft Group is a leading software and solution provider in China. Founded in 1991, Neusoft has three inter-promoting business units that are engaged respectively in software & services, medical systems and IT education & training, supported by a total staff of over 8,000 currently. In addition, the Company has set up software parks in four cities of Shenyang, Dalian, Chengdu and Nanhai for further R&D and HR reserve. After successfully constructing a complete sales & service network covering over forty cities around China, it has further extended its branches to US and Japan. For present, Neusoft offers products and service to over 8,000 large customers, maintaining leading market shares in telecommunications, social insurance, enterprises, electric power, tobacco, network security and other sectors. It is also China s largest offshore software outsourcing service provider. For more information, please visit http://www.neusoft.com.

About SAP
SAP is the world s leading provider of business software. Today, more than 33,200 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 <http://www.sap.com>)

For more information, please contact:

Evelyn Tang
Tel: 0086-24-83665663
Fax: 0086-24-83663451
Mobile:13504971511
Email:tangyi@neusoft.com