Research Finds QAD Customers Gain Most Benefits at Lowest Cost Per User in Mid-Sized Manufacturers

Survey of over 600 Companies Finds QAD's Software Provides Most Business Benefits at Lowest Cost Per User

SANTA BARBARA, Calif.--(BUSINESS WIRE)--QAD Inc. (NASDAQ: QADI - News), a leading provider of enterprise software and services for global manufacturers, was found to provide the most business benefits to mid-size companies at the lowest total cost per user among Enterprise Resource Planning (ERP) software providers included in a recent study, “The Total Cost of ERP Ownership in Mid-Size Companies” published July 2008 by Aberdeen Group.

Aberdeen surveyed over 600 companies with annual revenues between $50 million and $1 billion to identify what companies this size expect to pay for the business benefits from ERP software. The study measured both depth and breadth of functionality, as well as the cost of ERP in terms of software, services, and maintenance. QAD demonstrated it produced on average the maximum business benefits in this mid-market for the lowest cost per user on performance measurements such as reduction in inventory, operational costs and administrative costs along with improvements in online shipments and schedule compliance.

“We are committed to serving the needs of mid-market manufacturing companies around the world by developing and delivering enterprise software that is not only competitively priced, but also produces better business performance for our customers,” said Pamela Lopker, chairman and president of QAD. “This most recent report from Aberdeen validates our strategy of developing software solutions that enable manufacturers to achieve our vision of the ‘Perfect Lean Market’.”

“This study looked beyond the common factors companies typically use to select ERP software to determine the business benefits manufacturers achieved through cost savings and schedule improvements,” said Cindy Jutras, vice president and group director, Aberdeen Group. “Based on this analysis, we found that mid-size QAD customers produced the highest average improvements for the lowest cost per user.”

Earlier this year, QAD released QAD Enterprise Applications 2008, a new version of its flagship enterprise software solution. QAD 2008 meets the expectations of a new generation of application users by making it more intuitive to learn. The extensive release provides improved capabilities in financial management, customer management, manufacturing/distribution, supply chain management, and service and support.

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 6,100 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 QAD Web 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 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 2008 ended January 31, 2008.

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