QAD Announces Special Offer for Global Manufacturers Facing Software Vendor Consolidation.

CARPINTERIA, Calif. -- QAD Outlines How Former JD Edwards Users Can Innovate Their Manufacturing Businesses Now

Manufacturers can remove software vendor consolidation from the list of mounting pressures they face, thanks to a special offer QAD Inc. (NASDAQ:QADI) announced today to help former JD Edwards' World and EnterpriseOne users get the most value from their ERP software deployments both now and in the future. A leading provider of enterprise applications for global manufacturers, QAD has created a package of software, implementation and trade-in incentives for these companies. As a result, manufacturers can now add advanced manufacturing capabilities to their existing systems to achieve immediate business benefits, and establish a solid foundation and smooth transition path for streamlining manufacturing enterprise operations and supply chain communications over the long term.

"Today, former JD Edwards customers have three choices: wait for Oracle to deliver 'Project Fusion,' complicate their worlds by migrating to another mega-suite vendor such as SAP, or innovate what they already have -- by adopting QAD software with advanced manufacturing capabilities," said Pamela Lopker, QAD president and founder. "We believe global manufacturers shouldn't be forced to disrupt their businesses because of software market dynamics, and hope they will put innovation at the forefront of their plans. For 25 years, QAD has focused on solving manufacturers' real-world challenges with the best thinking in manufacturing theory and leading technology."

Comprehensive Offer Includes More than Financial Incentives

As manufacturers grapple with increasingly global competition and pressure to respond to customer demands at even lower cost, investment in technology has become a mainstay of competitive advantage -- and industry consolidation reduces the available solutions to manufacturers' challenges.

In response, QAD is helping these companies assess their opportunity and options to add value to existing systems and establish a strategy and roadmap for long-term success. QAD's comprehensive offer includes an assessment of business process and systems based on QAD Global Services' proven methodology to determine the most effective solution and implementation plan, and help minimize risk.

QAD software offers manufacturers the advantage of enhancing their legacy systems immediately with advanced manufacturing functionality: QAD Lean Manufacturing, QAD SupplyVisualization and QAD EDI ECommerce. These and other QAD applications help manufacturers better align supply with demand, and support advanced capabilities such as vendor-managed inventory (VMI) and advanced production techniques such as lean manufacturing and just-in-time (JIT) sequencing.

World-Class Enterprise Solutions Tailored to Vertical Market Needs

QAD applications are designed with specific functionality for the six manufacturing markets the company serves, to help customers automate manufacturing operations and streamline supply chain communication, implement advanced manufacturing techniques and improve responsiveness to demand. With support for 26 languages and capacity for an unlimited number of currencies, QAD solutions also feature open, industry standards-based architecture that allows manufacturers to standardize and centralize functions shared by all facilities, while preserving operational flexibility to accommodate the production models, plant locations, and local business and government requirements of each site. Manufacturers worldwide have standardized on the QAD MFG/PRO platform to manage enterprise operations at some 5,300 sites in more than 90 countries.

In addition to world-class software, QAD has established more than 25 major offices and a team of services professionals around the world to design, deploy and support QAD solutions on a global scale. With a wealth of experience resolving complex manufacturing problems worldwide, QAD support centers in the United States, the United Kingdom, Australia, the Netherlands, Mexico, Spain and Hong Kong have received HDI Support Center Certification (SCC), making QAD the first company ever to achieve global certification from HDI, the world's largest membership association for service and support professionals.

A META Group study confirmed that QAD delivers manufacturers the lowest total cost of ownership relative to company revenue (Relative TCO); the fastest time to implement (TTI); and the highest average annual quantifiable benefits as a percentage of TCO. The study compared more than 200 customers' software installations, including industry-leading products.(a)

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 medical products use QAD applications at approximately 5,300 licensed sites in more than 90 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.

"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, QAD's ("the company") ability to integrate the EDI assets into its business; the ability of the company's consultants to deliver successful operating models and plans to their customers; the ability of the company's customers to benefit from the company's application-enabled approach; 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.

(a) META Group Inc., "Deriving Value from Twenty-First Century ERP Applications," 2003.