AMR Report Ranks QAD No. 3 in ERP License Revenues for Target Manufacturing Markets.

Business Editors and High-Tech Writers

CARPINTERIA, Calif.--(BUSINESS WIRE)--June 29, 2000

QAD Shatters JBOPS Ranking in Leading Verticals

With Industry-Specific Approach and Beats Oracle in

Pharmaceuticals/Biotech Market; Recent Advances Position QAD

to Help Manufacturers Make E-Business Transformation

QAD (Nasdaq:QADI), developer of e-business solutions supported by best-in-class ERP applications, today announced that its industry-specific approach has helped it capture the No. 3 position in the ERP market for its targeted verticals and strongly positions it to help manufacturers make the e-business transformation with QAD eQ B2B applications.

According to a June report by AMR Research, a leading analyst organization tracking the ERP and e-business software industries, QAD had the third-highest ERP license revenues for 1999 in the automotive, electronics, food and beverage and industrial manufacturing markets, essentially doubling its market share in these areas. QAD moved ahead of Oracle into the No. 2 position in the pharmaceuticals/biotech market, the report showed.

"This research data confirms what we've known for many years: given a choice, manufacturers and distributors will select best-in-class applications designed to address the specific needs of their industries," said QAD President Pam Lopker. "We're using the same approach with our QAD eQ B2B applications, and, as a result, leading companies like AT&T Wireless have chosen QAD for e-business."

Though traditionally regarded as an enterprise software developer, QAD was one of the first companies to recognize the need for e-business functionality to centralize key customer and supplier functions across diverse and distributed global businesses.

QAD eQ B2B applications take the approach still further to support the complex, multi-company relationships that exist within a business as well as the relationships within and between customers, suppliers, and extended business partners.

According to The AMR Research Report on E-Business Technologies, May 10, 2000, from Rod Johnson & Pierre Mitchell, "At the heart of eQ is the B2B Relationship Framework, which provides the many-to-many relationship support that has previously only been offered by e-commerce trading exchange vendors.

"This capability alone uniquely positions QAD as an ERP-vendor-turned-B2B-exchange-vendor -- with the possible exception of Oracle Corporation, whose Oracle Exchange itself is a work in process."

The QAD eQ B2B suite of applications consists of Buy-Side and Sell-Side Management with Replenishment and Exchange capability. Its advanced B2B Relationship Management executes transactions based on the agreements and preferences of key parties making up the supply chain. This enables companies to leave daily decisions to business policies that can be defined in QAD eQ.

AMR Research has the largest research team dedicated to the enterprise and supply chain applications markets. Its senior research analysts have an average of 15-20 years of experience in business and IT, resulting in a deep understanding of IT's role within specific industries.

About QAD

Founded in 1979, QAD is a leading provider of industry-specific e-business solutions and services to multinational manufacturers and distributors of all sizes, with special focus on the mid-market. Available in 26 languages and able to support multiple currencies, QAD software helps speed business processes for more than 300,000 licensed users at more than 4,800 licensed sites in more than 80 countries.

QAD software is specifically designed for global manufacturers in the following targeted industries: automotive, consumer products, electronics, food and beverage, industrial and medical products. For more information about QAD, telephone [phone], or visit the QAD Web site at http://www.qad.com. To receive any of QAD's news releases via facsimile, contact 800/356-0747, or outside the United States contact +1 213/253-5647.

Note to Editors: QAD is a trademark and MFG/PRO is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

Note to Investors: This news 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 evolving demand for the company's software products and products that operate with the company's products; the publication of opinions by industry analysts about the company, its products and technology; 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; and general economic factors. In addition, revenue and earnings in the e-business and enterprise resource planning (ERP) software industries are subject to fluctuations and the growth rates recently experienced by the company do not necessarily represent future operating results. 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 enterprise resource planning industry, refer to the company's Annual Report or Form 10-K for the fiscal year ended Jan. 31, 1999.