World's Largest Business Software Company Lays Digital Foundation for Greater Efficiency and Profits

JUBAIL, Kingdom of Saudi Arabia - June 12, 2012 - Leading Saudi Arabian pipe manufacturer Jubail Energy Services Company (JESCO) is set to enhance its position as one of the region's most pioneering and vital businesses after agreeing to bolster key processes and decision-making with cutting-edge software solutions from SAP.

The project will initially see the company implement SAP solutions such as Enterprise Resource Planning (ERP) and Business Intelligence to automate fundamental processes such as HR, finance and manufacturing, dramatically improving transparency and an ability to make swift, impactful decisions in real-time while markedly slashing inefficiency across the company.

"JESCO is about embark on a period of growth both in terms of output and employment, which has presented us with an urgent need from improved, real-time visibility and transparency to improve every aspect of our processes, be it human resources or manufacturing," said ZeyadAl Barrak, CFO, JESCO.

"SAP is offering the right solutions at the right time, and we are delighted to add their expertise to our ambitious business plans."

A subsidiary of industrialization and energy services giant TAQA, JESCO became the first operating seamless pipe mill in the Middle East in 2006 and counts marquee names such as Saudi Aramco and SABIC among its clients.

"The oil and gas industry is the lifeblood of Saudi Arabia's astounding development and the service JESCO provides is absolutely essential to its on-going influence and prosperity," said Sam Alkharrat, Managing Director, SAP MENA.

"This is a company set to grow in leaps and bounds, and we are proud to play a part in helping it run better."

SAP is teaming up with JESCO at a time of notable success in Saudi Arabia, with a recent study by IDC, the premier global market intelligence and advisory firm for the information technology and telecommunications markets, naming it as country's Enterprise Application Software (EAS) vendor front-runner with a 43.5% market share.

Moving forward, SAP's profile in Saudi Arabia is set to become even more prominent thanks to the 12 March announcement by SAP AG CFO Dr. Werner Brandt of a four-year plan worthUS $450 million to up-skill local talent and drive sustainable innovation and growth in the Middle East and North Africa (MENA) region.

The plan includes recruiting more than 500 additional employees, opening several new offices and expanding the company's partner ecosystem and the SAP® University Alliances program. Additionally, significant increases will be made in the availability of comprehensive, innovative and localized service offerings.

SAP MENA will also establish a dedicated "Training and Development Institute" that aims to certify 2,000 newconsultants within the next four years. This will triple the company's existing consulting capabilities in the region and further support the localization of SAP® solutions to meet fast-growing regional industry needs.

-Ends-

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes andindustries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device- SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 183,000 customers (includes customers from the acquisition of Sybase)to operate profitably, adapt continuously, and grow sustainably. For more information, visitwww.sap.com.

Follow SAP on Twitter at@sapnews

About JESCO
In 2006, Industrialization and Energy Services Company (TAQA) decided to complement its developed business related to oil and gas industry with its new subsidiary called Jubail Energy Services Company (JESCO), for the manufacture of seamless pipes in Jubail 1 Industrial Area. The integration of seamless pipes manufacturing with its already equipped services to the oil and gas industry will provide better synergies and opportunities for Taqa as a group. From the exploration, drilling and marine facilities for the oil and gas sector to seamless pipes manufacturing, Taqa is an important contributor to the oil and gas industry upstream development.
  
The company is owned 51% by TAQA, 10% by Duferco Saudi Ltd, and the balance of shares is made up by other, prominent Saudi investors. Saudi Industrial Development Fund (SIDF), Public Investment Fund (PIF) and HSBC/SABB contributed to project financing. 
  
JESCO produces 400,000 metric tons per year of seamless steel pipes, and has 700 employees.

Visit http://www.jesco.com.sa for more information.

Media contacts
Claire McPeak, +971 4 330 1777,c.mcpeak@sap.com
Neil Jaques, Wallis Marketing Consultants, +971 4390 1950,sap@wallis-mc.com

© Press Release 2012