QAD, IBM and TRW Deliver Complete Enterprise Solution for Medical, Biotech and Pharmaceuticals Companies.

CARPINTERIA, Calif.--(BUSINESS WIRE)--July 15, 1999--

"Medical-in-a-Box" Package Supports Small- to Mid-Size Manufacturers

Seeking Fast Track to Rapid Growth

QAD (Nasdaq:QADI) Thursday announced the U.S. release of Medical-in-a-Box: The QAD and IBM PowerSystem(tm) solution for small- to mid-size medical, biotech and pharmaceuticals companies poised for rapid growth on the scalable Windows NT platform.

The system delivers the most requested medical enterprise resource planning (ERP) functionality -- including predefined, rapid Food and Drug Administration validation methodology and protocols, as well as cGMP compliance support.

Backed by the implementation services of TRW Integrated Supply Chain Solutions (ISCS), PowerSystem solutions are among the most comprehensive, pretested, pre-integrated enterprise solutions available for Windows NT.

Named "Medical-in-a-Box" to underscore its deep functionality tailored to the medical, biotech and pharmaceuticals industries, this new PowerSystem solution includes a complete package of business software, Netfinity servers, database, systems management and networking products. Financing options are available to qualified customers.

"Small to mid-size medical companies now have one of the strongest enterprise solutions available to support rapid growth on the scalable Windows NT platform. QAD's powerful industry-specific medical functionality, and IBM's award-winning Netfinity hardware running Windows NT make `big system' performance affordable with plenty of room to fit expanding system requirements," said Karl Lopker, chief executive officer of QAD.

The medical functionality and other key benefits built into Medical-in-a-Box include: -0-

--   Scalability for future growth
--   One price point per user for the bundled package of hardware,
     software and services
--   Predefined, rapid validation methodology and protocols
--   Full cGMP compliance support
--   Full lot/serial control to meet FDA requirements
--   Repetitive and discrete manufacturing
--   Product development and specifications
--   Quality management
--   E-commerce capabilities.

"QAD medical-specific enterprise software has a very strong reputation in the medical manufacturing industry, and IBM Netfinity servers offer dependability and scalability that many successful organizations count on," said Archie James, segment executive -- industrial sector, IBM global small and medium business.

"Together, IBM and QAD offer a very low-risk, comprehensive medical solution that medical, biotech and pharmaceuticals companies can grow with."

TRW ISCS is a leading systems integrator of QAD Applications, providing a full range of services that include implementation assistance, technical consulting, custom programming, upgrade assistance and training.

With almost 20 years of manufacturing consulting experience and 10 years working closely with QAD, TRW is extremely familiar with the capabilities and benefits of QAD Applications, and how to make them work to the advantage of customers in the medical, biotech and pharmaceuticals industries.

"This offering represents a combination of strengths from three global organizations: the `best of breed' functionality provided by QAD's MFG/PRO software, the reliable performance of IBM's Netfinity servers and TRW's proven capabilities as a worldwide systems integrator," said Gary Flum, director of QAD Consultancy at TRW.

Three of the top four medical-device companies and two of the top three biotech companies now use QAD enterprise solutions, including companies like Genzyme, Teleflex, CR Bard, Stryker and Johnson & Johnson. Companies can confidently select the PowerSystem solution with the knowledge that all elements of the solution have been optimized to work well together.

QAD will introduce Medical-in-a-Box at a series of three seminars titled "Understanding FDA Validation Requirements and the Solution to Speed Your Business," held July 20, 22 and 23 in Edison, N.J.; and Palo Alto and Los Angeles, Calif., respectively.

As part of the program, David Caruso, vice president of enterprise applications strategies for AMR Research, a leading industry analyst organization, will speak, as well as representatives from QAD, IBM and TRW. For more information, call 800/218-3434, ext. 222, or e-mail [e-mail].

About TRW ISCS

TRW Integrated Supply Chain Solutions provides total supply-chain solutions from management consulting to enterprise resource planning, manufacturing execution systems and logistics execution systems.

The systems-integration business spans the supply-chain continuum, serving clients in a wide range of industry sectors including: automotive, semiconductor manufacturing, consumer packaged goods, pharmaceuticals and medical, electronics, aerospace and defense, third-party logistics, grocery, retail, apparel, and wholesale distribution.

For additional information, visit http://www.trw.com/supplychain.

IBM Product Family

The IBM Netfinity server family brings IBM's experience in enterprise computing to Intel-processor-based servers. From uniprocessor systems to powerful rack-mounted multiprocessors, IBM Netfinity servers deliver the power, scalability, control and service needed to help run a business, with the cost-effectiveness expected from industry-standard technology.

Backed by IBM's world-class support structure, Netfinity systems come with the acclaimed service and support expected from IBM, including 90-day IBM Start Up Support and international, three-year on-site warranty service. For more information on Netfinity servers, visit the Netfinity Web site at http://www.pc.ibm.com/us/netfinity.

About QAD

Founded in 1979, QAD is a leading provider of enterprise and extended supply-chain-management software and services to multinational companies 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 4,000 licensed sites in more than 80 countries.

QAD software is specifically designed for global manufacturers in the following targeted industries: transportation, consumer products, electronics, food and beverage, industrial, and medical products. Another important advantage is QAD's quick results wherever sites are located.

QAD revenues for the fiscal year ended Jan. 31, 1999, totaled $193 million. 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 213/253-5647.

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 ERP software industry 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 ERP industry, refer to the company's Annual Report or Form 10-K for the fiscal year ended Jan. 31, 1999.

NOTE TO EDITORS: QAD is a trademark and MFG/PRO(R) is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.