Leading Specialty Apparel Retailer Selects SAP® for Retail as Its End-to-End Solution to Increase Speed and Coordination Across Multi-Branded Enterprise

ORLANDO, Fla. – May 16, 2006 – Continuing its strong track record of providing retail customers of all sizes around the world with best-in-class business software, SAP AG (NYSE: SAP) today announced that Chico’s FAS, Inc. (NYSE: CHS), one of the fastest growing specialty retailers in the world, will implement SAP® for Retail to support its aggressive growth strategy. With integrated applications for merchandising, finance, procurement, supply chain management and product life-cycle management, SAP’s retail solution portfolio will help Chico’s gain an unified view across its multi-branded enterprise. The announcement was made at SAPPHIRE® ‘06, SAP’s international customer conference, being held in Orlando, Florida, May 16-18.

Operating nearly 800 stores in 47 states in the United States, Chico’s has been very successful with its traditional business model of selling exclusively designed, private-label clothing and related accessories. As Chico’s looks to continue its strong growth-whether it decides to do so organically through same-store sales and new store sales, by way of acquisition or through introducing new brands to the market-the retailer requires a flexible infrastructure that can scale as it grows.

Chico’s will adopt the SAP NetWeaver® platform as the strategic foundation of its system, allowing the company to consolidate various disparate legacy systems onto a single, integrated platform. SAP for Retail will provide Chico’s with comprehensive, real-time performance metrics combined with powerful planning capabilities designed to help retailers react quickly to changing market trends and customer demands.

Chico’s conducted a thorough investigation and concluded that SAP for Retail was the best option to support its business and IT objectives.

“SAP understands retail and has demonstrated a strong commitment to our success,” said Scott A. Edmonds, president and chief executive officer, Chico’s FAS, Inc. “Chico’s plans to utilize SAP for Retail to create a flexible business process platform for Chico’s and to provide a key support for our growth into the next decade.”

“SAP is honored to partner with one of the premier names in retail and the envy of the industry with its robust growth and customer-focused business model,” said Bill McDermott, president and CEO, SAP Americas. “Our companies share much of the same commitment to our customers, and we look forward to building a strong relationship with Chico’s and to helping Chico’s realize its goals and continue to execute on its mission of providing excellent personalized service and a unique retail environment.”