AGS Automotive Standardizes Manufacturing Operations On QAD; Canada-Based Tier 1 Automotive Supplier Chooses QAD to Power World-Class Enterprise.

Business Editors/High-Tech Writers

CHARLOTTE, N.C.--(BUSINESS WIRE)--May 25, 2004

QAD Inc. (Nasdaq:QADI), a leading provider of enterprise applications for global manufacturers, today announced that AGS Automotive Systems (formerly A.G. Simpson) will standardize all seven of its North American production facilities on QAD MFG/PRO eB2.

A leading supplier of metal products and assemblies for the automotive industry, AGS Automotive Systems' upgrade expands its commitment to QAD solutions and will take advantage of QAD PRO/PLUS and EDI ECommerce modules to establish a solid platform for enterprise -- and extended enterprise -- operations. By streamlining operations, including supplier communications, AGS Automotive Systems expects to achieve more efficient manufacturing operations that will contribute to greater competitive advantage and growth.

With production facilities in Canada and the United States, AGS Automotive Systems holds 30 percent of market share for chrome-plated automobile bumpers in North America. New leadership at AGS Automotive Systems has focused on evaluating their business processes and systems. As a result, AGS Automotive Systems is establishing a company-wide foundation for efficient, effective manufacturing operations that can support greater responsiveness to original equipment manufacturers' (OEMs) requirements. AGS Automotive Systems anticipates the solution's extensive functionality for the automotive industry will enhance manufacturing and enterprise functions shared by multiple locations, as well as facilitate better collaboration with customers and its own suppliers.

"AGS Automotive Systems is committed to driving the automotive industry forward through our own dedication to quality, teamwork and our use of innovative technology," said Dan Reid, director of technology. "We've been a QAD customer since 1997, and through rigorous evaluation, we reaffirmed that QAD MFG/PRO eB2 is the world-class platform on which we can build our leadership position in the automotive sector."

QAD applications' features, functions and architecture built on open, standards-based technology reflect the company's close work with the automotive industry. Today, seven of the world's 10 largest automotive suppliers depend on QAD for their global operations.

"AGS Automotive Systems and other automotive suppliers can gain competitive advantage by pursuing technological and process excellence that contribute to supply chain efficiency," said Pamela Lopker, QAD president and chairman of the board. "For more than two decades QAD has combined the best thinking in manufacturing theory and an understanding of real-world manufacturing conditions, to provide solutions that improve responsiveness from companies and their trading partners."

QAD MFG/PRO eB2 is a comprehensive enterprise solution with application functions that address lean manufacturing and enhance supply chain execution. To maximize its interoperability with legacy systems and minimize cost of ownership, the MFG/PRO eB2 suite is built on industry standards including Open Applications Group Integration Specification (OAGIS) messaging conventions, Business Object Documents (BODs) and XML. EDI ECommerce also features open, table-based architecture that makes it easy to accommodate customers' specific requirements. And PRO/PLUS contributes additional industry-defined functionality for tasks including reporting, scheduling, financials and shipping. By enhancing its deployment of the QAD enterprise software platform, AGS Automotive Systems will improve the flow of real-time manufacturing and demand data across business functions and sites.

"AGS is passing an important milestone in its evolution as a Tier-1 supplier to the automotive industry and QAD delivers an established solution," said Reid. "We selected QAD because it will help us to improve the effectiveness of our teams and better manage our operations while we advance the technological excellence of our underlying systems."

About QAD

QAD enterprise applications leverage advances in Internet and enabling technologies to provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time. Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and medical products use QAD applications at approximately 5,200 licensed sites in more than 80 countries and in as many as 26 languages. For more information about QAD, telephone [phone], or visit the QAD Web site at: www.qad.com. To receive any of QAD's press releases via facsimile, contact [phone], or outside the U.S. contact [phone].

"QAD" and "MFG/PRO" are registered trademarks of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

Note to Investors: This press release contains certain forward-looking statements made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include, but are not limited to, evolving demand for the company's software products and products that operate with the company's products; the company's ability to sustain strong licensing demand; the ability to sustain customer renewal rates at current levels; the publication of opinions by industry analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; difficulties relating to integration of a new business; the entry of new competitors and their technological advances; delays in localizing the company's products for new markets; delays in sales as a result of lengthy sales cycles; changes in operating expenses, pricing, timing of new product releases, the method of product distribution or product mix; general economic conditions, exchange rate fluctuations and the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP), e-business and distributed order management software industries are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. Investors should not use any one quarter's results as a benchmark for future growth. For a more detailed description of the risk factors associated with the company and the industries in which it operates, please refer to the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2004.