Independent Study Finds QAD Provides Low Total Cost of Ownership Per Functionality for Global Manufacturers

Business Wire, August 7, 2007

SANTA BARBARA, Calif. -- QAD Inc. (NASDAQ: QADI), a leading provider of enterprise applications and services for global manufacturers, provides superior Total Cost of Ownership (TCO) per functionality, according to "The Cost of ERP Functionality," a recent study published by Aberdeen Group.

Aberdeen surveyed more than 1,680 companies of all sizes to benchmark ERP in Manufacturing, measuring both depth and breadth of functionality, as well as the cost of ERP in terms of software, services, and maintenance. QAD demonstrated superior TCO per functionality over most all other vendors, owning in part to its ease of use and simplified design.

"We continue to be committed to serving the needs of manufacturing companies around the world by developing and delivering enterprise software that is easy to install, implement, and use for better business performance," said Pamela Lopker, chairman and president of QAD. "This most recent report from Aberdeen validates our strategy to offer deep industry functionality, while remaining focused on the needs of manufacturers."

"In this study, we found that it is important for users to consider various factors when making buying decisions for an ERP system including, but not limited to the price of functionality deployed," said Cindy Jutras, Vice President & Group Director, Aberdeen Group. "QAD continues to deliver at a strong price point in tandem with its ease of use as evidenced by its low service to software cost ratio."

Earlier this year, QAD released QAD Enterprise Applications 2007, a new version of its flagship enterprise software solution. QAD 2007 is a complete suite to address the requirements of global enterprises. Employing Service Oriented Architecture (SOA) capabilities QAD 2007 includes enhanced functionality that enables global manufacturers to better manage supply and demand chains, enterprise assets, transportation and logistics, while streamlining communication and improving manufacturing productivity.

To learn more and access a copy of the Aberdeen report visit www.qad.com.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies. QAD applications 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 life science products use QAD applications at approximately 5,800 licensed sites in more than 90 countries and in as many as 27 languages. For more information about QAD, telephone 1 805 684 6614, or visit the QAD Web site at: www.qad.com.

"QAD" is a registered trademark of QAD Inc. All other products or Company names herein may be trademarks of their respective owners.

Note to QAD 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 license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; 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; timely and effective integration of newly acquired businesses; general economic conditions; exchange rate fluctuations; and, the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP) software industry 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 performance. 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 fiscal 2007 ended January 31, 2007.