World's Leading Systems Supplier for Telecom & Data Networks Adopts Best Practices in Manufacturing With QAD.

Business Editors

CARPINTERIA, Calif.--(BUSINESS WIRE)--Oct. 1, 2001

QAD Helps KRONE Communications, India, Adopt Clearly Defined Business

Practices, Increase Data Accuracy and Automate Inventory Management

QAD (Nasdaq:QADI), a leading provider of collaborative commerce applications for global manufacturing enterprises and their private exchanges, today announced a successful implementation of QAD MFG/PRO enterprise resource planning software in five months at KRONE Communications, India.

Headquartered in Bangalore, KRONE Communications Ltd is a leading systems supplier for telecommunications and data networks. The implementation is part of KRONE's complete enterprise networking exercise in Asia-Pacific that includes Hong Kong, Singapore, Australia and India.

Sampath Kumar, GM (Manufacturing) at KRONE India said, "We realized that the need of the hour was to integrate the whole business process with back-end software that would automate inventory management, sales and distribution, and accounts. Also, our business needed an effective material requirement planning system to address the seasonal demand in this industry."

With the implementation of its applications at KRONE, QAD has further strengthened its presence in the telecommunications sector in India. QAD software is now used at more than 86 manufacturing sites across India and KRONE is QAD's second telecom client after Lucent Technologies Hindustan Ltd.

"The decision to implement QAD MFG/PRO was made in Asia-Pacific," Kumar continued. "QAD MFG/PRO was our application of choice for the Asia-Pacific region, including India, due to its reputation for successful global deployment, ease of implementation and cost-effectiveness."

In India, QAD MFG/PRO was implemented at KRONE's manufacturing site located at Peenya, on the outskirts of Bangalore. The users at this installation are spread across the manufacturing unit and the corporate office. During the implementation period of five months, KRONE received complete technical support and consultancy from Atos Origin, a QAD implementation partner in India.

Benefits to KRONE from its implementation of QAD applications included:

-- Clearly defined processes across the company

-- Online availability of accurate cost information

-- Online inventory valuations

-- Accurate Material Requirement Planning (MRP)

-- Integrating Finance with its Operational Modules

"This rapid, successful implementation reflects the involvement of the KRONE and Atos Origin teams," said Arjun Erry, country manager, QAD India. "The business users participated in the project by realigning their departmental processes with QAD MFG/PRO, thus ensuring a timely implementation incorporating industry-standard `best practices.'"

About KRONE Communications Ltd.

The KRONE Group is the world's leading systems supplier for telecommunications and data networks. From network design to commissioning, the company supplies connectivity solutions and products for copper and optical fiber networks. Established in 1989, KRONE AG holds 51% of the joint venture while KEONICS has invested 11% and the public holds 38%. KRONE Communications -- an ISO 9002 Company -- has over the last 10 years established its pre-eminence in the manufacture and supply of MDF and associated External Plant products.

About QAD

QAD's global manufacturing expertise delivers value through collaborative commerce applications that empower enterprises to integrate diverse business processes and increase profitability. Manufacturers of automotive, food and beverage, consumer, electronics, industrial and medical products use QAD software at more than 5,200 licensed sites in more than 80 countries and in as many as 26 languages. 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 1-800/356-0747, or outside the U.S. contact [phone].

"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 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, but are not limited to, 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), e-business and collaborative commerce software industries 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 industries in which it operates, refer to the company's Annual Report on Form 10-K for the fiscal year ended Jan. 31, 2001.