QAD Receives Top Praise from Manufacturing Industry and Press In China; Tony Yip Named Influential and QAD Solutions Called Instrumental.

WASHINGTON -- QAD (NASDAQ:QADI), a leading provider of enterprise applications for global manufacturers, has been cited by China's leading press and manufacturers for the contributions of QAD staff and solutions to the industry. Tony Yip, managing director of QAD Asia, has been named one of the "Ten Single Most Influential Figures" in manufacturing in China, and awards from technology, manufacturing and vertical press follow on QAD's recognition last year as the largest provider of enterprise applications to automotive suppliers in China(1).

The Chinese manufacturing information network, e-works, selected Yip for his efforts that have made QAD China a vital link in China's automotive supply chain. His accomplishments include establishing joint partnerships with Shanghai Automotive Information Systems Co. Ltd. and Chang An Information Industry Co. Ltd. Recently, Yip supervised QAD's opening of a new research and development center in Shanghai, and under his guidance, QAD has grown to serve more than 300 customers in China, including more than 100 that are automotive suppliers.

"We are very proud of Tony's achievements," said Pamela Lopker, president and founder of QAD. "With his leadership, QAD Asia is helping multi-national and domestic customers tackle their toughest manufacturing challenges in the region. Tony's efforts attest to QAD's commitment -- more than ten years' strong -- to the growth of manufacturing in China."

Software Named Outstanding Product of the Year

QAD's flagship software, MFG/PRO eB2, also was chosen by e-works as "an outstanding information industry product of 2004" from among competing software companies. According to e-works, QAD's flagship software deserves recognition for its relevance to the manufacturing industry, its fast installation and its ease of use. The award cited especially strong praise for QAD software from members of China's automotive industry.

QAD garnered accolades from China's technology and vertical media in 2004, as well. e-Builder magazine gave QAD MFG/PRO the "2004 Editor's Choice" award; Car Producer magazine gave the MFG/PRO eB2 the "2004 Product of Excellence" award; and e-Commerce World magazine named QAD a "2004 Automotive Software Provider of Excellence."

QAD MFG/PRO provides Chinese manufacturers with a comprehensive solution for automating manufacturing activity from financials to the shop floor. Applications such as QAD Supply Visualization help streamline interaction with suppliers and facilitate advanced manufacturing initiatives such as pull-based replenishment and vendor-managed inventory. Available in 27 languages and capable of handling multiple currencies, QAD enterprise applications feature a technology architecture that allows manufactures to support the production models, plan locations, and financial structure that best suit their business.

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 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 improvements in the IT and economic environment; the company's 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; 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 fiscal 2005 ended January 31, 2005.

(1) The Economist Network, "China Auto Industry Suppliers Survey," May 2004