Applica Consumer Products Incorporated Chooses QAD to Power Its World Class Manufacturing Initiative.

Business and High-Tech Editors

CARPINTERIA, Calif.--(BUSINESS WIRE)--Sept. 9, 2002

Proven Low Total Cost of Ownership Prompts Global Consumer Goods 

Manufacturer to Expand Relationship With QAD 

QAD (Nasdaq: QADI), a leading provider of collaborative commerce applications for global manufacturers, today announced that its customer Applica Consumer Products, Inc. has chosen QAD MFG/PRO eB enterprise software for its large manufacturing facility located in the People's Republic of China and two administrative offices in Hong Kong. This agreement expands Applica's strategic partnership with QAD and builds upon the success Applica has achieved from earlier implementations of QAD MFG/PRO eB in its Mexico manufacturing facility and Latin American sales offices.

This implementation supports Applica's World Class Manufacturing initiative, a global strategy designed to reduce costs, streamline operations and realize the benefits of lean manufacturing. QAD MFG/PRO eB provides Applica with integrated order management, finance and manufacturing planning capabilities that enable a reduction in raw and finished goods inventories and related costs. Because of QAD's proven ability to deliver rapid return, Applica anticipates its Asia-Pacific implementation of MFG/PRO eB will be live by early 2003.

"QAD's low total cost of ownership paired with the positive results we've already achieved using QAD in our Mexico and Latin American operations were major factors in our decision to expand our implementation of MFG/PRO eB into China and Hong Kong," said Terry Polistina, chief financial officer at Applica. "As we continue to implement World Class Manufacturing in our Chinese manufacturing operations, we are pleased to have QAD as a partner committed to our success."

"Achieving World Class Manufacturing requires vast technical expertise and a proven solution," said Dr. Thomas Fisher, vice president of global information technology at Applica. "Applica was impressed with QAD's track record of implementing complex manufacturing systems in the Asia-Pacific region and their available professional resources. Our experience with the MFG/PRO eB solution has been rewarding thus far and we look forward to extending our implementation to take advantage of the benefits QAD offers."

"It is nice to see our customers succeeding with their visions," said Pam Lopker, chairman, president and founder of QAD. "After 23 years working with global manufacturers, QAD has the depth of experience and breadth of product functionality required to rise to the challenges faced by today's manufacturing enterprises. We are pleased that Applica has chosen us and look forward to helping them achieve their World Class Manufacturing vision."

About QAD MFG/PRO eB

A solid foundation for e-business, as well as a best-in-class manufacturing solution, MFG/PRO eB includes an integrated set of manufacturing, distribution, financial and customer service applications designed to address the needs of customers in automotive, consumer products, electronics, food and beverage, industrial products and medical industries. MFG/PRO eB applications also include unique, industry-specific features that were developed through collaboration with customer development groups. Interoperable with legacy systems and other leading enterprise applications, MFG/PRO eB gives companies best-in-class functionality -- where they need it most.

MFG/PRO eB also supports multiple currencies and global tax management, and is tailored to financial practices and requirements in many major geographic markets. And MFG/PRO eB software can be supported in as many as 26 languages, including most major European languages, Japanese, Chinese and Korean.

Operating in both host and distributed, client/server and browser-based computing environments, MFG/PRO eB supports single or multiple sites, as well as multiple production and operational processes. These capabilities enable midrange and large multinational manufacturers to manage multiple hybrid production methods within a single organization or a single production site, and they also provide the flexibility to adapt to additional sites and processes as an organization's business evolves.

About Applica

Applica Incorporated (NYSE:APN) and its subsidiaries are manufacturers, marketers and distributors of a broad range of branded and private-label small electric consumer goods. In 1998, Applica acquired the Black & Decker Household Products Group and became a leading supplier of brand name small household appliances in the United States. The Company also manufactures and distributes professional personal care products, home environment products and pet care products, including the LitterMaid(R) self-cleaning cat litter box. Applica manufactures and markets products under licensed brand names, such as Black & Decker(R), its own brand names, such as Windmere(R), and other private-label brand names. Applica's customers include mass merchandisers, specialty retailers and appliance distributors primarily in North America, Latin America and the Caribbean. The Company operates manufacturing facilities in China and Mexico. In addition, Applica manufactures products for other consumer products companies. Additional information regarding the Company is available at www.applicainc.com.

About QAD

QAD delivers value through collaborative commerce for manufacturers, empowering enterprises to integrate diverse business processes and increase profitability. Manufacturers of automotive, food and beverage, consumer, electronics, industrial and medical products use QAD applications at more than 5,400 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," "MFG/PRO" and "MFG/PRO eB are registered trademarks. 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. Such statements include, but are not limited to, Applica's expected completion of its MFG/PRO eB implementation by early 2003. 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 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 enterprise resource planning (ERP), e-business and collaborative commerce 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 industries in which it operates, please refer to the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2002.