Saint-Gobain Performance Plastics to Streamline Global Manufacturing Operations with QAD; Industrial Manufacturer Adds QAD Modules for Greater Responsiveness, Lower Costs

Business Wire, July 13, 2004

CARPINTERIA, Calif. -- QAD Inc. (Nasdaq:QADI), a leading provider of enterprise applications for global manufacturers, today announced that Saint-Gobain Performance Plastics Corp. will extend its commitment to the QAD platform in order to improve responsiveness to customers, standardize core enterprise and IT functions, and reduce costs. A QAD customer since 1998, Saint-Gobain Performance Plastics will upgrade to QAD MFG/PRO eB2 and implement QAD EDI ECommerce and Consignment Inventory modules to support its vision. QAD Global Services will work together with Saint-Gobain Performance Plastics to provide support and training.

"With customers around the globe, Saint-Gobain Performance Plastics is committed to responding to their needs," said Chuck Wierzbicki, director of IT, Saint-Gobain Performance Plastics. "QAD solutions have brought greater efficiency to our manufacturing activity. By upgrading and enhancing our deployment with QAD software, we will extend the benefits of automation to better synchronize our production and inventory with customer demand, and ensure core enterprise activities are consistent across multiple locations and languages."

Saint-Gobain Performance Plastics is the world's leading producer of high-performance engineered polymer products, ranging from fluid handling hose and tube, machined and molded fluoropolymers, and medical-grade silicones; to coated fabrics and tapes, membranes, foam seals, gaskets, precision bearings, and composites for aerospace. Its parent, Compagnie de Saint-Gobain, is one of the top 100 industrial corporations in the world. The Performance Plastics unit already has deployed QAD software for centralized order processing, and expects QAD applications will help advance its objective to support its global manufacturing presence with world-class business processes, including sales and fulfillment, service and support, planning and production, supply chain activity and product lifecycle management.

"By enhancing not only manufacturing processes but also interaction with trading partners, Saint-Gobain Performance Plastics will be well-equipped to meet industrial manufacturing customers' expectations for faster responses and lower costs," said Pamela Lopker, QAD president and chairman of the board. "For more than two decades QAD has combined the best thinking in manufacturing theory and an understanding of real-world manufacturing conditions, to provide solutions that help companies achieve greater manufacturing and supply chain performance and accommodate industry change."

The industrial manufacturer's migration to MFG/PRO eB2 will allow it to further automate and streamline plant operations for greater productivity. In addition, Saint-Gobain Performance Plastics will be able to standardize manufacturing and enterprise processes shared by multiple sites. QAD EDI ECommerce will allow the company to improve collaboration with supply chain partners. QAD Consignment Inventory will afford the company and its trading partners greater insight into the availability of materials, as well as flexibility in defining the financial terms of inventory and purchase.

QAD Global Services will provide support and training to enable Saint-Gobain Performance Plastics IT staff to maintain their QAD system's optimal performance as the company grows and its business evolves.

About QAD

QAD enterprise applications leverage advances in Internet and enabling technologies to provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time. Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and medical products use QAD applications at approximately 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 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 company's ability to sustain strong licensing demand; the ability to sustain customer renewal rates at current levels; the publication of opinions by industry analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; difficulties relating to integration of a new business; 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; general economic conditions, exchange rate fluctuations and the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP), e-business and distributed order management software industries are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. 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, please refer to the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2004.