New QAD Software and Services Strengthen Demand-Driven Enterprise.

ERP Provider Brings Power of Simplicity to Sales, Equipment Utilization and Transportation

CARPINTERIA, Calif. & PRAGUE -- Building on its commitment to helping manufacturers run a demand-driven enterprise, QAD Inc. (NASDAQ:QADI) today announced new modules and services that extend the capabilities of its flagship enterprise software suite to sales and marketing, equipment utilization, transportation logistics, and improvements in demand management. A leading provider of enterprise applications for global manufacturers, QAD has enhanced its Global Enterprise Edition suite, QAD GXE, to further assist multi-national manufacturers in simplifying aspects of their business - from demand forecasting to supply and demand alignment, to demand fulfillment - for world-class customer relationships and more profitable operations.

The latest offerings continue QAD's Demand Driven Enterprise Initiative following the debut of QAD GXE and the 2005 launch of strategic solutions for global management and local execution. The new QAD modules help manufacturers establish and maintain high-quality customer relationships through sales force and marketing automation; optimize production planning and inventory; and deliver goods in compliance with regulatory and customer requirements. Additionally, QAD consulting services contribute to more efficient, cost-effective use of QAD software, while more customizable learning and an updated .NET-based user interface enhance employees' work with manufacturing data, enabling them to work more productively.

"The latest software from QAD is designed to give multi-national manufacturers the ability to identify and act quickly on local opportunities, while maintaining a global standard of demand fulfillment and operational efficiency," said Pamela Lopker, chairman and president, QAD. "As we deliver on our commitment to the demand-driven manufacturing enterprise, it's gratifying to extend the capabilities of our solutions without adding complexity, as well as to make progress on our vision of a perfect lean market by helping to streamline the manufacturing supply chain."

New Modules, Enhancements Address Customer-Facing Functions

The latest software modules complement existing QAD GXE capabilities for responding to customer demand. QAD Sales Force Automation and QAD Marketing Automation improve aspects of customer interaction that can lead to long-term, profitable relationships. QAD Transportation Management System integrates logistics management with QAD enterprise software to help manufacturers follow through seamlessly on their customer commitments. QAD Demand Management and QAD Enterprise Asset Management facilitate more effective use of resources.

Highlighted features and functions in the new QAD modules include:

* QAD Sales Force Automation. Featuring tools to define and standardize sales processes, QAD Sales Force Automation helps manage all opportunities, contacts and activities. The module centralizes sales cycle and pipeline information, and provides calendaring, alerts and remote access. Standardized sales process and an accurate view of the sales funnel help sales and management understand progress against sales goals.

* QAD Marketing Automation. Using key criteria to identify high-potential prospects, QAD Marketing Automation helps companies create highly targeted marketing campaigns. Support for budgeting and tracking of actual costs helps users keep campaigns on budget and gauge cost per lead. Fully integrated with QAD Sales Force Automation, QAD Marketing Automation ensures that leads get fast attention to become sales.

* QAD Transportation Management System. Incorporating open, standards-based technology from QAD's recent acquisition of Precision Software, QAD Transportation Management System helps increase visibility into logistics so that manufacturers can move goods quickly and predictably through the global supply chain. The module helps manufacturers reduce transportation costs, prevent transit-related delays and comply with global trade regulations.

* QAD Enterprise Asset Management. By addressing all aspects of the plant and equipment lifecycle, QAD Enterprise Asset Management helps increase asset utilization and its impact on profitability. QAD capabilities in this area have recently been strengthened by the acquisition of long-standing partners FBO Systems, Inc. The module includes tools for managing capital projects, MRO inventory and indirect purchasing, and features a dashboard interface for quick insight.

* QAD Demand Management. Building on the demand management engine and tools introduced last May, new modules for Inventory Optimization and Rough Cut Capacity Planning help to assess production plans' feasibility and facilitate adjustments to scheduling and resources. Rough Cut Capacity Planning executes this analysis with a focus on finished goods and major sub-assemblies to plan for the entire shop floor. The QAD Demand Management suite is completely configurable, scalable and easy to deploy as well as easy to access through a Web-based interface for industry-leading value at a lower cost than competing solutions.

QAD also has enhanced a host of products including QAD Advanced Inventory Management, QAD Production Scheduler, QAD Customer Self Service and QAD Business Intelligence.

New Services Improve Human Capital Management

In conjunction with new and improved software, new QAD support and learning services are designed to help manufacturers get the most from their employees. QAD Global Services now offers enhanced application management and upgrade services to ensure that each customer continually receives maximum value from its QAD system, without having to dedicate internal resources that could be assigned to more profitable activities. In addition, a learning assessment service gauges opportunities for manufacturers to improve training and education so that employees use QAD applications efficiently and effectively, based on an understanding of manufacturing fundamentals and industry context. New tools for knowledge management and customization of learning programs and content complement the assessment. Finally, QAD Global Services is facilitating new Customer Advisory Groups for user input with respect to business process, software and industry requirements that could inform future QAD solutions.

Availability

QAD Sales Force Automation, QAD Marketing Automation, QAD Enterprise Asset Management and QAD Transportation are now available to early adopter customers. QAD Demand Management and new modules are now shipping.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies. QAD applications 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 life science products use QAD applications at approximately 5,500 licensed sites in more than 90 countries and in as many as 27 languages. For more information about QAD, telephone [phone], or visit the QAD Web site at: www.qad.com. "QAD" 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 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 license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; 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) software industry 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 performance. 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 fiscal 2006 ended January 31, 2006.