IBM-QAD Strategic Alliance to Deliver e-Market Orders and Exchange Solution to Global Midmarket

Business Wire, Oct 12, 2000

Business Editors and High-Tech Writers

SOMERS, N.Y. & CARPINTERIA, Calif.--(BUSINESS WIRE)

Oct. 12, 2000

World Class QAD/IBM Solution Will Seamlessly Integrate with

Enterprise Applications and Personalize Trading Relationships

IBM (NYSE:IBM) and QAD (Nasdaq:QADI) today announced a global strategic alliance to jointly market and deliver e-market exchange applications for the rapidly growing midmarket industrial and wholesale distribution sectors.

The alliance targets customer needs for online business-to-business (B2B) trading technology, a market predicted to expand to $6 trillion by 2005, according to Internet commerce research firm Jupiter Communications Inc.

Combining QAD eQ applications and IBM's middleware, servers, and implementation services, the two companies will offer innovative, world-class e-market solutions. These solutions will be capable of defining complex commerce relationships across the supply chain, personalizing each trading relationship and protecting investments in back-office technology by integrating seamlessly with distributed ERP systems from multiple vendors.

"The rapid advance of Internet-enabled business-to-business trading has created a huge opportunity for our midmarket customers," said Mark Ryan, vice president of marketing, IBM Global Midmarket Business. "Manufacturers and distributors worldwide will have the applications, consulting expertise and technology they need to realize rapid results from combined QAD and IBM e-business solutions."

Through this strategic alliance, QAD will further develop the QAD eQ solution on the IBM WebSphere(a) Software Platform, enhancing its portability and making it available on multiple leading platforms, including IBM eServer(a)s -- pSeries(b), iSeries(b), and xSeries(b) operating on IBM's DB2(a) Universal Database. In turn, IBM will market QAD applications through its worldwide midmarket sales force, and IBM's Global Services organization will build a QAD practice.

Major industry analyst organizations have voiced their support for the technology built into QAD eQ. "QAD has always scored the highest of marks on speed and ease of implementation, and the real power of (QAD) eQ is that end-users, not IT people, have the flexibility to add and alter relationships and policies. So, as new channels like trading exchanges emerge, companies can quickly model new relationships and rules to manage the interaction." Rod Johnson & Pierre Mitchell, The AMR Research Report on E-Business Technologies, May 10, 2000.

QAD eQ is a new B2B applications suite enabling e-Market Orders and Exchanges. The suite includes Sell-Side, Buy-Side, Order Management, Replenishment and Commerce Relationship Management applications. QAD eQ's unique Commerce Relationship Management captures the knowledge of the entire commerce chain, encompassing the roles, policies, and processes that define its personality and how companies do business. QAD eQ is an e-business application which leverages IBM's WebSphere(a) Application Server, IBM's WebSphere(a) Business Components, WebSphere(a) Commerce Suite, MQSeries(a), DB2(a) Universal Database, and VisualAge(a) for Java.

"QAD's alliance with e-business leader IBM underscores our readiness and ability to deliver industry-specific e-business solutions to multinational and midmarket companies worldwide," said Pam Lopker, founder and chairman of QAD.

The IBM-QAD strategic alliance is part of a developer initiative where IBM forms strategic relationships with leading software developers. Under the initiative, developers gain access to new customers and revenue opportunities through IBM's extensive marketing, sales, and solutions resources.

About QAD

QAD is an e-business innovator for manufacturers and trade exchanges. QAD software enables more than 300,000 licensed users to reach new markets and drive costs out of the supply chain at more than 4,800 licensed sites in more than 86 countries. QAD software and services are specifically designed for global manufacturers in the following targeted industries: automotive, consumer products, electronics, food and beverage, industrial, and medical products. For more information about QAD, telephone 805/684-6614, 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 U.S. contact 1 213/253-5647.

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. The fastest way to get more information about IBM is through the IBM home page at: http://www.ibm.com. PartnerWorld for Developers (http://www.developer.ibm.com) is a worldwide program designed to help developers reach broader markets, lower costs of doing business, and take their products to market faster.

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 e-business and enterprise resource planning (ERP) 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 enterprise resource planning industry, refer to the company's Annual Report or Form 10-K for the fiscal year ended Jan. 31, 2000.