QAD Enhances Advanced Manufacturing Capabilities, Introduces QAD Production Scheduler for World-Class Operations, Local Performance; Solution Expands GXE Portfolio of Software and Services.

CARPINTERIA, Calif. -- Delivering on its commitment to offer multinational manufacturers strategic solutions for global management and local execution, QAD Inc. (Nasdaq:QADI), a leading provider of enterprise applications for global manufacturers, today announced product enhancements and the QAD Production Scheduler. New capabilities deepen QAD support for customers' advanced manufacturing initiatives; they include software and services designed to give global manufacturers a strategic advantage by removing waste -- not only from production but from across the extended enterprise -- to help achieve efficient production and best-in-class inventory levels. These advanced manufacturing offerings update the QAD Global Enterprise Edition (GXE) portfolio of solutions created to support global operational excellence, while preserving the flexibility of local operations.

Purpose-built to support leading-edge production, QAD software's advanced manufacturing capabilities are completely scalable, simple to implement and easy to use in established manufacturing centers, new markets or new ventures. Enhancements reflect world-class production system principles and best practices for transmitting data to achieve lean manufacturing and supply visibility. Other updates for advanced manufacturing address sales and distribution, communication of inventory data across the supply chain, advanced warehouse management functionality and streamlined production. In addition, QAD Global Services supports design and deployment of systems that are flexible to accommodate rapidly changing business conditions.

New Technology Further Automates Supply Chain Response

Along with the release of enhanced functionality in several existing QAD solutions, QAD advanced manufacturing capabilities are further extended with QAD Production Scheduler, a new Web-based module that increases scheduling efficiency by providing near real-time insight into key production scheduling information in a single screen. Visual alerts enable the scheduler to quickly determine and act on potential item availability and capacity problem areas. As manufacturers face constant fluctuations in demand and produce increasingly complex product mixes, visibility of the production environment -- and information that impacts it -- is vital to determining appropriate action.

Highlights of the advanced manufacturing offering include:

--QAD Production Scheduler, which consolidates production scheduling information into a single screen; provides near-real-time insight into demand, supply and capacity; uses visual alerts to flag potential problem areas; and allows for scheduling simulation.

--An integrated suite incorporating QAD MFG/PRO eB2.1, QAD Lean Manufacturing, QAD JIT Sequencing, QAD Customer Self Service and QAD Supply Visualization for streamlining every aspect of the expanded enterprise.

--Global services spanning lean consulting, upgrade services, application management services and rapid e-commerce implementation.

--Development groups, joint development projects and customer advisory groups to gather continuous feedback from QAD customers on advanced manufacturing and other topics.

Together, these updates are intended to help manufacturers improve demand accuracy; reduce inventory; cut inventory-related costs; boost inventory turns to best-in-class levels; streamline processing; shorten product lead time; lower logistics costs; improve customer self-service; and reduce overhead and administration. With more accurate and iterative production scheduling, QAD Production Scheduler also helps reduce safety stock buffers and improve accuracy of order-to-promise dates. In combination with existing QAD capabilities, this new functionality can help global manufacturers increase customer satisfaction and improve plant and supply chain efficiencies.

"Having worked side-by-side with our customers since the early days of globalization, QAD is in a unique position to understand the real-world challenges manufacturers face and combine the best process from around the world with leading-edge technology," said Pamela Lopker, QAD president and chairman of the board. "The advanced manufacturing capabilities we are introducing underscore our commitment to perpetuate industry best practices and advanced manufacturing principles throughout the value chain -- and dramatically reduce the flow of business process from weeks to hours."

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 5,300 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.

"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 is 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 2005 ended January 31, 2005.