The strategic goal of the project is to create a modern corporate management system that will enable AO MOSENERGO's managers to effectively run the company. The project will extensively implement components of mySAP.com platform including SAP R/3 enterprise resource management solution, SAP BW, information gathering and analysis system, as well as SAP SEM, a solution for corporate strategy. The testing is scheduled for December 2001. The number of effective users of the SAP systems in the company is planned to increase by several thousands.

AO MOSENERGO's top management will provide comprehensive support to the project, which will determine the future unfolding of the project.

Solutions for finance and budget management as well as SAP BW and SAP SEM are scheduled to be implemented at the general directorate of AO MOSENERGO.

A specialized industry solution IS-U/CCS is designed for controlling sales and client settlements. It will be implemented at Volokolamsk and some other branches of Energosbyt, the sales division of AO MOSENERGO.

The project also aims to optimize energy sales and purchases using SAP software tools. During the first stage the solution for managing material flows will be implemented at the enterprise level becoming a launching pad for further realization of this part of the project. Solutions for controlling materials, fixed assets, finances, technical maintenance and repair will be implemented at GRES-4, a power station in Kashira and Northern Electric Grids company in Korolev.

"The decision to use SAP systems was made after careful analysis of the market situation. I would like to especially praise the quality of work done by employees of SAP CIS who demonstrated the operating capabilities of the system. It is only the beginning of the project, but we have big plans for this," said Aleksandr Remezov, general director of AO MOSENERGO.

"Positive references regarding the functioning of SAP systems from our foreign and domestic energy colleagues were critical for us. By using SAP solutions we hope to increase the effectiveness of management in our company," said Vladislav Pavlovich Cherny, first deputy general director for corporate policy and property management of AO MOSENERGO.

According to Marco Burkhardt, managing director of SAP CIS and the Baltics, "Due to the high quality of solutions available on mySAP.com platform we can offer Russian companies a package of solutions that maximally suit the existing challenges. SAP solutions are successfully used at energy enterprises in many countries including Russia. We hope that our solutions will help AO MOSENRGO to optimize business processes and increase their quality."

About SAP:

SAP is a leading world supplier of software solutions in the area of enterprise resource management and e-business. Based on mySAP.com platform companies in the world can improve links between clients and partners, modernize their activities and ensure the maximum optimization of logistic chains. Currently, more than 13,000 companies in 100 countries use 30,000 systems based on SAP software. In 2000 financial year, the turnover of SAP including its subsidiaries located in 50 countries was 6.26 billion euro. SAP shares are quoted at leading world exchanges including the Frankfurt Stock Exchange and NYSE (ticker: "SAP"). Additional information on SAP can be obtained at: www.sap.com