QAD Extends Solution Suite to Microsoft Platform; Manufacturers Gain Greater Return on QAD, Microsoft Technology Investments.

DENVER -- To serve even more of the world's manufacturers, QAD Inc. (NASDAQ: QADI), a leading provider of enterprise applications for global manufacturers, is now shipping its flagship ERP software with a Microsoft .NET Framework-based user interface and will offer support for Microsoft SQL Server 2005 database technology in the near future. As a result of close collaboration with Microsoft (NASDAQ: MSFT), current and future releases of the QAD software suite will take advantage of the Microsoft platform.

The extension will help manufacturers worldwide make the most of their technology investments, whether they are planning to deploy the latest QAD ERP suite, Global Enterprise Edition, QAD GXE into an IT environment standardized on the Microsoft platform or extending their present QAD implementation to new sites using Microsoft database technology. In both cases, customers can expect seamless operation across sites using a mix of Microsoft and other database and platform technologies.

"Our strategic efforts with QAD will serve manufacturers in established and developing markets," said Robert Bernard, general manager of Global ISV Group, Microsoft. "Mutual customers stand to benefit, as the Microsoft platform is the platform of choice for many companies and gaining ground in emerging manufacturing as across the globe."

Support for the Microsoft platform is one of a host of initiatives QAD announced today at Explore 2006, QAD's annual user conference, to deliver on its commitment to simplifying enterprise technology for manufacturers. QAD solutions enable manufacturers to gain better insight into their overall business operations, a greater ability to anticipate and respond to marketplace change, and much crisper collaboration with trading partners. These characteristics underpin QAD's vision for a perfect lean market, in which the right information at the right time in the supply chain drives effective and efficient operations.

Powerful Interface and Database Capabilities

Manufacturers will find support for the Microsoft platform in QAD GXE, which is designed for centralization of global operations and preservation of local execution.

New capabilities that capitalize on Microsoft technology include:

--Microsoft .NET Framework-based user interface. Following a joint proof-of-concept by Microsoft and QAD, the new user interface empowers manufacturers to boost QAD system usability with screens that are more easily configured to give employees easy, intuitive access to data. The enhancements help customers take advantage of Microsoft Internet Explorer and productivity applications so that employees can use familiar tools, such as Microsoft Office Excel spreadsheets and Web-based navigation, to work more productively. The new user interface also ensures compatibility with the forthcoming Microsoft Windows Vista desktop operating system.

--Support for SQL Server 2005. QAD's ERP solutions will incorporate the power and cost-effectiveness of the latest Microsoft database technology. Manufacturers will be able to harness valuable production data and robust, scalable database functions to make fast and information-driven decisions that impact manufacturing, financials, distribution and field service activity.

The extension of QAD solutions to the Microsoft platform will help ensure that QAD solutions continue to make optimal use of the technologies its customers require.

"Our close work with customers and prospects is driving this expansion of QAD offerings and extension of the benefits of QAD solutions to manufacturers who prefer the Microsoft platform, and it signals the beginning of a long-term campaign to serve a wider market," said Pamela Lopker, chairman and president of QAD. "For more than 25 years, QAD has focused on solving manufacturers' real-world challenges with the best thinking in manufacturing theory and leading technology. In concert with Microsoft, we are paving the way for manufacturers to take advantage of advanced database reporting and business intelligence capabilities, as well as future enhancements for greater insight and agility such as Microsoft MapPoint routing calculations for field service personnel. Microsoft's technical applications stack, combined with the laserlike focus of QAD's product suites, is a winning combination for today's manufacturers."

Availability

QAD solutions are now shipping with the Microsoft enhanced user interface. QAD products supporting SQL Server 2005 are expected to be available within a year.

QAD Global Services will offer a variety of services options to help customers assess their present ERP systems and plan, design and execute migration to QAD GXE or future releases, coupled with Microsoft database technology.

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.