SAF Simulation, Analysis and Forecasting AG

Press Release: Leading Eastern European Drug Store Chain Replenishes with SAF Software

Implementation of Two Systems to Automate Inventory Replenishment

Tägerwilen/Switzerland, January 7, 2008. The SAF AG, which is listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN CH0024848738), and is one of the worldwide leading suppliers of automated forecasting and ordering systems for retailers, has signed a license agreement with one of the leading drug store chains in Eastern Europe for the use of its order and inventory optimization software in the client’s stores and also in its warehouse. With this software installation, the drug store chain in Poland will convert from manual to automated replenishment. The SAF forecasting and ordering systems are able to forecast with great accuracy the future demand. In doing so, it considers seasonal influences, holidays, advertising promotions, school vacations and other effects which might influence the sales. The system will optimize the replenishment process, reduce costs and increase profit both in the ca. 250 Polish stores of the drug store chain and in the central warehouse. With the signing of this agreement, SAF continues the expansion of its direct business in Eastern Europe.

In total, the drug store chain operates more than 500 stores in Poland, Hungary and the Czech Republic. The company is owned by one of the largest and most rapidly growing retail companies in the health & beauty market in Europe. Initially, its expansion in Eastern Europe will be supported by SAF technology. Currently, the company replenishes in Poland on the basis of different software systems which coordinate the inventory replenishment of the central warehouse. The bulk of store replenishment is performed manually.

High Automation, Significant Reduction of Out of Stocks and Less Inventory
At the beginning of 2008, SAF will implement both of its core products, SAF SuperWarehouse and SAF SuperStore, in the central warehouse and in the stores. “The automation of the inventory replenishment optimizes replenishment and also the data flow between the central warehouse and the stores,” reports Dr. Andreas von Beringe, CEO of SAF. “The use of SAF software represents a clear competitive advantage. It significantly cuts warehouse inventory, reduces the out of stock rate and increases product turnover.” In addition, the drug store chain will benefit from an increase in service level and gain space for a larger assortment. On top of that, SAF experts support replenishment both in strategic and also tactical decision-making during routine business. The signed agreement will already contribute to SAF sales from direct business in 2008. Further, it is planned to support the drug store chain in the future during its strong expansion in Eastern Europe in order to further strengthen its competitive position through the utilization of innovative systems.

About SAF AG
SAF Simulation, Analysis and Forecasting AG specializes in the development of automated ordering and forecasting software for retailers and industrial manufacturers. SAF deploys the demand chain management approach, which controls replenishment planning based on consumer demand patterns. SAF software assists users to realize substantial cost savings and optimizes general logistics conditions through its simulation capabilities. As a result, significant competitive advantages are achieved along the entire value chain: lower inventories, improved product availability, and last, but not least, a higher level of customer

SAF AG was established in 1996 by Dr. Andreas von Beringe and Prof. Dr. Gerhard Arminger. SAF shares are listed at the official market (Prime Standard) at the Frankfurt Stock Exchange (FWB). Today, the company employs approx. 95 people. Consolidated sales revenues for fiscal year 2006, were approx. 13.6 million EUR with consolidated profit of 4.6 million EUR according to IFRS statements. SAF’s products are distributed in many European countries as well as in the United States. The company is headquartered in Tägerwilen, Switzerland. SAF also has a subsidiary in the United States: SAF Simulation, Analysis and Forecasting U.S.A., Inc., Grapevine, Texas and in Slovakia, Bratislava: SAF Simulation, Analysis and
Forecasting Slovakia s.r.o. with the focus on Nearshore-Development.

Astrid Strömer
Vice President Investor & Corporate Communications
High-Tech-Center 2, Bahnstrasse 1
CH-8274 Tägerwilen
E-Mail: investorrelations@dont-want-spam!saf-ag.com

Forward Looking Statements and Estimates
This information contains forward looking statements based on assumptions and estimates of SAF's Management Board. Although we assume the expectations in these forward looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and un-certainties that may cause the actual figures to differ considerably from the forward looking statements. Factors that may cause such discrepancies include, among other things, risks that are mentioned in the annual report 2006. SAF does not plan to update the forward looking statements, nor does it assume the obligation to do so.