XYTHOS ANNOUNCES OEM RELATIONSHIP WITH SAP

"Portal Drive" Simplifies Access to Documents in SAP Netweaver Portal

San Francisco, California – October 18, 2006 - Xythos Software today announced that SAP has licensed the Xythos Drive, renamed the Portal Drive, to enhance integration between the
Windows desktop and the SAP NetWeaver Portal. The Portal Drive provides easy access to the SAP NetWeaver Portal from any Windows™ application, which helps to simplify enterprise
content publishing and improve workforce collaboration. With Portal Drive, SAP NetWeaver Portal content (more precisely all content accessible by the Knowledge Management capabilities of SAP NetWeaver) appears as standard Windows files and folders which are securely accessible over the web. Users can even manage SAP NetWeaver Portal content when they’re not online using the Portal Drive’s offline synchronization features.

SAP customer, Stefan Schmidt, Senior Consultant Business Applications and Analytics, Team Enterprise Portals at Freudenberg IT-Consulting KG observed, “The Portal Drive enables users to run any Windows™ application and directly open, edit, and save files on the SAP NetWeaver Portal as if the files resided on the user’s local computer. The subtle but powerful benefit is that users can work within the applications they know best, while also easily contributing to and expanding the use of the SAP NetWeaver Portal.” This was a goal of the SAP Xythos OEM relationship, to extend the utility of the portal beyond the traditional boundaries of the web.

“The Xythos Drive allows users to create, manage and share content without changing their existing behavior. By providing seamless Windows™ desktop integration, our OEM customers can enable offline access and promote rapid user adoption of their portals and document management systems,” said Gary Zuckerman, vice president of business development at Xythos.

According to Gartner, Inc, “Enterprises want to simplify their overly complex (and costly) workplace technical infrastructures and move on to the next set of business requirements. They want their content management, collaboration and portal environments integrated to eliminate redundancy and to better support their workplace environments. The workplace architecture should include a platform and a set of software services that enable integration of content, information access and collaboration-related services,” stated Mark Gilbert, Research Vice President, Gartner.

Xythos has experienced increased interest in both its client and server technology within the software developer community as a result of the growing demand for integrated content management services within enterprise applications. The company has recently expanded its business development team to address this opportunity and renewed interest within the internet service provider (ISP) and software as a service (SaaS) markets.

To learn more about Xythos OEM business opportunities visit: http://www.xythos.com/oem/

Copyright © 2006 SAP AG. All rights reserved. SAP, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

About Xythos Software
Xythos Software is a leading developer of basic content services software for enterprise organizations. Xythos’ open standards-based document and content management applications
and its WebFile Server development platform help customers safely capture, manage, store and share content throughout its lifecycle. Xythos products are licensed to over two and a half million users at commercial, education and government organizations around the world. To learn more about Xythos, visit www.xythos.com or call 1-888-4XYTHOS.