QAD eQ 3.5 Offers Dramatic Improvements in Supply Chain Costs, Delivery Time and Customer Satisfaction

QAD (NASDAQ: QADI), a leading provider of collaborative commerce solutions for manufacturers, today announced that QAD eQ 3.5, the newest version of QAD eQ, now includes Replenishment. The QAD eQ distinctive Internet-based order hub now enables customers to extend their back-office ERP systems, seamlessly integrating sales orders, purchase orders, and replenishment orders with their supply chain through a single order management hub.

QAD eQ 3.5 Offers Dramatic Improvements in Supply Chain Costs, Delivery Time and Customer Satisfaction

Latest QAD eQ release enables lean supply chains through Sell-Side, Buy-Side,
and Replenishment applications

Carpinteria, Calif. - QAD (NASDAQ: QADI), a leading provider of collaborative commerce solutions for manufacturers, today announced that QAD eQ 3.5, the newest version of QAD eQ, now includes Replenishment. The QAD eQ distinctive Internet-based order hub now enables customers to extend their back-office ERP systems, seamlessly integrating sales orders, purchase orders, and replenishment orders with their supply chain through a single order management hub.

The QAD eQ 3.5 Private Trading Exchange (PTX) order hub uniquely addresses the need for lean manufacturing supply chains by coordinating Sell-Side, Buy-Side, and Replenishment operations simultaneously. In addition, the application platform enables manufacturers to implement and monitor their trading interface with both suppliers and customers via the Internet and achieve dramatic reductions of supply chain costs, improved delivery time, and greater customer satisfaction.

According to David Myers, senior director of QAD eQ Applications, "Collaborative supply chains are emerging as a competitive advantage in the global marketplace. By integrating back-office systems with the extended enterprise, QAD eQ can play a pivotal role in helping to achieve the high profit margins, low operating costs, and excellent customer service that are so essential to stay competitive in today's business environment."

QAD eQ Replenishment
With QAD eQ Replenishment, real-time consumption data drives the flow of material through production to customer sites automatically. Customer usage, not the receipt of purchase orders, triggers material flow. Similarly, real downstream demand, not forecasts, trigger production and procurement processes. QAD eQ Replenishment can dramatically reduce the need for buffer inventory, replacing manual systems through its automated "pull" capabilities and by applying vendor-managed inventory and kanban processes. Pull signals from the customer to the supplier enable linked planning and execution systems, offering improved customer service and resource planning throughout the supply chain.

With QAD eQ Replenishment, customers can:
·   Increase productivity by automating demand replenishment processes
·   Improve inventory management through automatic replenishment, based on point-of-use or point-of-sale information
·   Optimize visibility throughout the supply chain through more open communication and tighter production planning
·   Improve customer satisfaction service levels by implementing vendor managed inventories

QAD eQ Sell-Side
QAD eQ Sell-Side features a centralized order management system that can lower transactions costs, provide multiple ways to capture an order, and leverage the investment in back-office systems.

QAD eQ Buy-Side
QAD eQ Buy-Side includes an advanced Internet-based purchase order management system designed to increase process efficiencies and reduce the direct material costs of large, multi-national companies through centralized procurement functions. New to QAD eQ Buy-Side version 3.5 is the advanced ability for purchase order processing to be integrated to various multiple back-end systems.

About QAD eQ
QAD eQs order hub includes a Private Trading Exchange (PTX) suite of Sell-Side, Buy-Side and Replenishment order management applications that can extend back-office systems to enable collaboration with customers and suppliers and deliver a competitive advantage. Launched in 2001, QAD eQ is available for manufacturing companies in the automotive, food and beverage, consumer products, industrial, electronic components, and medical devices markets.

About QAD
QAD delivers value through collaborative commerce for manufacturers, empowering enterprises to integrate diverse business processes and increase profitability. Manufacturers of automotive, food and beverage, consumer, electronics, industrial and medical products use QAD applications 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 +1 805 684 6614, or visit the QAD web site at www.qad.com. To receive any of QADs press releases via facsimile, contact +1 800 356 0747, or outside the U.S. contact +1 213 253 5647.
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QAD" and MFG/PRO" are registered trademarks, and QAD eQ is a 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 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 quarters 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 they operate, please refer to the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2001.