QAD European Accounting Application Helps Manufacturers and Distributors Meet Country-Specific EU Requirements.

CARPINTERIA, Calif.--(BUSINESS WIRE)--July 27, 1999--

No. 1 Maker of Paper Machine Clothing Gains

Quick Results With Solution

QAD (NASDAQ:QADI), a leading developer of enterprise and supply chain applications, Tuesday announced the immediate availability of QAD's European Accounting application, which helps mid-range and large manufacturing and distribution businesses meet the tax, legislative and local practice requirements of the majority of the West European countries.

Developed by QAD in Europe, European Accounting is an add-on module that expands the functionality of MFG/PRO Financials. It is a functionally rich, easy to implement, up-to-date application that is fully integrated with QAD's MFG/PRO version 8.6E forward.

A number of QAD customers have already implemented the European Accounting module. Albany International, the world's No. 1 maker of paper machine clothing, is using QAD's MFG/PRO 8.6 with European Accounting in France and will soon finish the implementation in Sweden, the UK, Germany, Finland and the Netherlands.

Jan van Beest, IS director, Europe, for Albany International, said, "We are very pleased with the richness and functionality offered by QAD's European Accounting. It covers all our key requirements, allows a very fast and straightforward implementation and is beginning to deliver good results for our company."

"Now part of QAD's complete enterprise software offering, this new functionality gives manufacturers across Europe a very strong application supporting European Accounting methods," said Pam Lopker, QAD chairman and president. "QAD's MFG/PRO with European Accounting helps companies meet the tax, legislative and local practice requirements of Western European manufacturing."

QAD's European Accounting module consists of three sub-modules: -0-

1. Basic European Accounting -- helps clients meet common and
   country-specific accounting, tax and legislative requirements.

2. Intrastat Versions -- supports common and country-specific
   Intrastat reporting.

3. Bank-Format Drivers -- allows clients to tailor data and reports
   to country-specific banking requirements for manual and
   electronic transactions.

"We felt it was important to support the handling of local accounting requirements and tax regulations within MFG/PRO," said Joost van Leusen, QAD's product marketing manager for the European Product Management Group. "Too many of our competitors are ignoring the wide range of practices and legal requirements that vary from country to country. As an organization that has been very successful in Europe (QAD is installed at over 1,600 sites in the EMEA region), it is important to us to provide customers with a system that makes pan-European business management easier."

European Accounting is available in the following languages: U.S. English, French, German, Spanish, Italian and Dutch.

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.

Note to Investors: 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 enterprise resource planning (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 enterprise resource planning 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.