QAD Rated Best `Value for Money' According to Survey of Business Software Users

Business Wire, July 19, 2001

Business Editors

CARPINTERIA, Calif.--(BUSINESS WIRE)--July 19, 2001

QAD (Nasdaq:QADI), a leading provider of collaborative commerce applications for global manufacturing enterprises and their private exchanges, today announced that QAD enterprise applications have been rated the No. 1 "Value for Money" among ERP systems used by mid-sized organizations.

A total of 14 vendors and their applications were named in the survey, including JD Edwards, IFS and QAD.

The report underscores the strong reputation QAD maintains among global manufacturers, as well as the easy usage QAD MFG/PRO applications provide companies facing complex production- and distribution-related issues in their local markets. The survey was conducted by evalu8IT and Data Research DPU, research and consulting companies based in Stockholm, Sweden, that help organizations with acquisitions and evaluations of computer software and hardware.

Pam Lopker, QAD president, said: "In challenging economic times, it's more important than ever to select an enterprise software company that knows your industry and that has consistently delivered value tied to the bottom line. Our customers confirm that QAD applications are doing just that. And to help our customers prepare for the future, we have continued to invest in advanced collaborative commerce applications that are now empowering enterprises to integrate diverse business processes and increase profitability."

The founder of evalu8IT and Data Research DPU, and a frequent IT lecturer, Soren Janstal has more than 30 years of experience in computer science, including 11 years with IBM. The customer roster of his consulting businesses reads like a Who's Who list of top companies in the U.K., France, Denmark, Norway and Sweden.

"Our Web site offers one of the best unbiased sources available on the Web for businesspeople in the market for enterprise software, and QAD MFG/PRO has consistently rated very highly in our surveys," said Janstal. "In order to secure the greatest volume of respondents, we make it easy for businesspeople to enter their survey selections via the Internet. However, our methodology requires that participants supply identification in order for their input to be accepted. This enables us to protect the integrity of our survey data, since we carefully censor out votes from vendors."

The survey results can be viewed at http://www.evalu8it.com/ratings/mfgpro.html.> About Data Research DPU

Data Research DPU publishes checklists with standardized requirement specifications and has established a public database and method for evaluations. The method matches needs according to the checklist and the product ratings in a database that covers over 200 systems. Applications covered are accounting, 4GL and office automation. More than 1900 companies in Scandinavia have used Data Research DPU services and partnerships have been established in Norway, France and England. Data Research DPU is an agent for Bloor Research, CTR and OVUM evaluations reports in Sweden, Denmark, Finland and France. evalu8IT guides companies to find the best evaluations of software and hardware. Visit its Web site at www.evalu8it.com.

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, consumer, electronics, food and beverage, industrial, and medical products use QAD software at more than 5,100 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 http://www.qad.com. To receive any of QAD's press releases via facsimile, contact 1-800-356-0747, or outside the U.S. contact 1 213-253-5647.

"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 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 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, please refer to the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2001.