News

Outstanding Student Performance

KIPP DC: KEY Academy is the highest performing middle school in the District of Columbia. According to the percent of students scoring proficient or higher on the Stanford-9 exam, our students have outperformed every DC Public middle school in combined math and reading scores. Our students also outperformed every DC Public Charter school in every indicator on the Stanford-9 exam in the spring of 2004. On average, KIPP DC fifth graders enter KEY Academy two years below grade level, performing in the bottom third of U.S. fifth graders in reading and the bottom half of the country's fifth graders in math on the Stanford-9 exam. Our "No Shortcuts, No Excuses" approach to learning has enabled our seventh graders to score in the top 10% of seventh graders nationwide in math on the Stanford-9 in 2004.

Forbes Magazine, "KIPP DC students spend twice as many hours on the basics, and it shows."

KEY Academy's "No Shortcuts, No Excuses" model supports an extended school day, week, and year. And it's leading to students' high aspirations and achievement.

“ No Shortcuts ”, Forbes November 10, 2003

KIPP DC: KEY Academy Partners with SAP to Power New Computer Lab

Alliance to Enable Students to Meet the Demands of a Tech Savvy Society and Prepare the Next Generation of Business Leaders

WASHINGTON — October 7, 2003 — KIPP DC: KEY Academy and SAP (NYSE: SAP) today announced that SAP has entered into an agreement to deliver a new computer lab, begin a mentoring program with SAP employees for students, and provide a host of enrichment services. The agreement is valued at $120,000 over three years and is the first significant underwriting agreement entered into between a corporation and KEY Academy. KEY Academy, Knowledge Empowers You, is a nationally recognized charter school in KIPP, the Knowledge is Power Program, a San Francisco, California-based network of public schools around the country that provides underserved students with the knowledge, skills, and character needed to succeed in top-quality high schools, colleges, and the competitive world beyond. SAP is a leading business software solutions provider to public sector and education agencies through its subsidiary, SAP Public Services, Inc. in Washington, D.C.

“We are thrilled that SAP has made such an important and substantial commitment to our school,” said Susan Schaeffler, founder and principal of KIPP DC: KEY Academy. “Due to our extended school day and rigorous curriculum, our operating costs exceed the public funds we receive. As we continue to enrich the academic experience of our students to prepare them for college, we hope SAP's visionary leadership and support leads to other corporations joining to support our efforts.”

The alliance between SAP and KEY Academy is part of a nationwide trend, according to a recent survey conducted by the National Association of Partners in Education, which found that 70 percent of all U.S. school districts today are participating in some form of business partnership, an increase of 35 percent since 1990. Collectively, these partnerships contribute about 109 million volunteer hours and $2.4 billion yearly to schools, which constitutes a 102 percent increase in the last 13 years.

The partnership with KEY Academy further expands SAP's commitment to education. There are more than 140 universities around the globe using SAP software as an instructional tool in undergraduate and graduate study programs through the SAP University Alliance Program. Incorporating programs in business, engineering, and the arts and sciences, the University Alliance Program has provided more than $100 million worth of software, training, and services to colleges and universities across the globe since its inception in 1997.

“SAP's success in business is based on strong partnerships with our customers,” said Bill McDermott, CEO and president, SAP America, Inc. “Equally important are the community partnerships established locally; those that bring students and business together. Communities win by investing their time, resources and talents to make a difference in their own backyard. SAP supports KEY Academy in the belief that Knowledge Empowers You and that to empower children for success in the 21st century, computer technology must be integrated into reading, math, science, and art.”

“The effectiveness of the principal and teachers at KIPP DC: KEY Academy is extraordinary,” said Mike Kimsey, Executive Director of the Kimsey Foundation and Board member of KIPP DC: KEY Academy. “Their accomplishments are simply unparalleled in Washington, D.C. They live up to their motto ‘No Shortcuts; No Excuses'. Because they do, the KIPP DC Board is embarking on a plan to introduce several more KIPP Schools in Washington, D.C. over the next five years, with the goal of increasing our student body to nearly 1400 in the District. Corporate support is critical to ensure we are able to secure proper facilities and other resources needed to replicate the results produced so far by KIPP DC: KEY Academy. We look forward to engaging with other visionary corporations like SAP to help prepare D.C.'s youth for a bright future in a highly competitive market.”

Opened in July 2001, KIPP DC: KEY Academy is a 240-student middle school serving fifth through seventh grade students. Located in the southeast quadrant of the city, KIPP DC: KEY Academy primarily serves neighborhoods east of the Anacostia River in Wards 7 and 8. The school will add an eighth grade next year, bringing the total student body size to 320. As measured through national standardized testing (SAT-9), KIPP DC: KEY Academy is one of the highest performing of all DC public and public charter schools. KIPP DC: KEY Academy students spend approximately two thirds more time in the classroom than their counterparts in traditional public schools. KIPP DC students attend class from 7:45 a.m. until 5 p.m. four days per week, and until 3:30 p.m. on Fridays; from 9 a.m. until 1 p.m. three Saturdays per month; and for one month during the summer.

About KIPP DC: KEY Academy

Chartered by the D.C. Public Charter School Board in 2001, KEY Academy (Knowledge Empowers You) is affiliated with KIPP, the Knowledge Is Power Program, a unique network of public schools around the country that prepares historically underserved students for college. KIPP students are accepted regardless of prior academic record, conduct, or socioeconomic background. KIPP DC: KEY Academy serves 240 fifth, sixth and seventh graders in Southeast Washington. The school's mission is to prepare students with the academic, intellectual, and character skills necessary for success in high school, college, and the competitive world beyond. KEY Academy is adding an eighth grade in July 2004, bringing its ultimate student body size to 320 middle school students in 2004-05. More than ninety-nine percent of the student body is African American, and greater than 80% of students qualify for the federal free or reduced-price lunch program. Nineteen percent of students receive special education services.

About SAP

SAP is the world's leading provider of business software solutions. Through mySAP™ Business Suite, people in businesses around the globe are improving relationships with customers and partners, streamlining operations and achieving significant efficiencies throughout their supply chains. The unique core processes of various industries, from aerospace to utilities, are supported effectively by SAP's 23 industry solution portfolios. Today, more than 20,000 companies in over 120 countries run more than 64,500 installations of SAP® software. With subsidiaries in over 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).

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 Annual Report on Form 20-F for 2002 filed with the SEC on March 21, 2003. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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A KIPP Student's Experience at Disney World A chaperone's recollection of one specific student's growth during a trip to Disney World.

“Braving Disney,” Washington Post Magazine November 9, 2003

Book Recognition

KIPP DC students and Founding Principal Susan Schaeffler are mentioned in a forthcoming Manhattan Institue for Policy Research book. Senior Fellows Abigail and Stephan Thernstrom reference Ms. Schaeffler and the students in No Excuses: Closing the Racial Gap in Learning . The book will be published shortly by Simon and Schuster and will be available in most major bookstores and online at Amazon.com.