QAD eQ Collaborative B2B Applications to Be Demonstrated on Multiple Leading Platforms at IBM Link_2001

Business Wire, March 1, 2001

Business Editors & High-Tech Writers

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

IBM and QAD Strategic Alliance Delivers Results;

QAD eQ Sets New Standard in B2B, Enables More Manufacturers

to Set Up Private Trading Exchanges and Process Orders

From Anywhere to Anywhere via the Internet

QAD Inc. (Nasdaq:QADI), recognized as the leading provider of applications for global manufacturing enterprises and their private exchanges, today announced that it will be featured by IBM at the Link_2001 conference, held March 18-21, 2001, as the only software developer extensively using Java-based IBM WebSphere technology in its B2B applications.

Utilizing WebSphere, QAD eQ B2B applications will be demonstrated live on multiple leading platforms to show manufacturers and distributors how they can use the solution to set up private trading exchanges and collaboratively place and process orders from anywhere to anywhere via the Internet.

IBM's third annual Supply Chain Management Conference, Link_2001 marks an important milestone in the global strategic alliance between IBM and QAD announced on Oct. 12, 2000, to jointly market and deliver e-market exchange applications for the rapidly growing midmarket industrial and wholesale distribution sectors.

As a direct result of the alliance, QAD eQ applications are available now for use with IBM eServers, including IBM RS/6000, Netfinity and AS400e servers, operating on IBM's DB2(a) Universal Database. This will allow the many manufacturers currently using these servers to quickly connect their core applications to other businesses and collaboratively conduct business over the Internet.

"Global multinational and midmarket manufacturers have the ability to become a part of the Internet economy without delay using QAD eQ B2B applications," said Pam Lopker, president and founder of QAD. "QAD eQ stands alone as the most powerful solution available to help manufacturers and distributors build private trading exchanges and drive Internet orders through their back-office systems.

"2001 holds great promise for the global multinational companies we are working with who are now first in line to reap real e-business benefits by extending their enterprise applications across the supply chain and creating new business opportunities."

QAD eQ applications, combined with IBM middleware, servers and implementation services, define complex commerce relationships across the supply chain, personalize trading relationships and protect investments in back-office technology by integrating seamlessly with distributed ERP systems from multiple vendors.

Tapping into its installed base of more than 5,000 sites, QAD has already established six global multinational customers in various phases of preliminary testing and usage of QAD eQ. QAD has incorporated the most extensive usage of IBM WebSphere to date in its QAD eQ B2B applications suite.

QAD eQ will be featured at Link_2001 as a Platinum Sponsor, underscoring its position as the best example yet of how the Java-based SanFrancisco framework can help software developers build scalable, high-performance business systems for distributed deployment over the Internet.

QAD eQ includes Sell-Side, Buy-Side, Order Management and Replenishment, with a unique Commerce Relationship Management capability that 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 applications leverage 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.

About QAD

QAD is a leading innovator of e-business solutions for manufacturing, distribution and exchanges. QAD applications are used at more than 5,000 licensed sites in 86 countries. Available in as many as 26 languages, QAD software serves the following 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, call 800/356-0747 or, outside the United States, 213/253-5647.

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, please refer to the company's annual report on Form 10-K for the fiscal year ended Jan. 31, 2000.