QAD Continues to Simplify Automotive Supply Chain Compliance

Solution Provider Offers Complete MMOG/LE Compliance

SANTA BARBARA, Calif.--(BUSINESS WIRE)--QAD Inc. (NASDAQ: QADI - News), a leading provider of enterprise applications for global manufacturers, and the only ERP software provider on the automotive industry’s MMOG/LE update committee, established by AIAG and Odette, today announced that its recently released QAD 2009.1 Enterprise Applications software supports the latest version of Materials Management Operations Guideline/Logistics Evaluation (MMOG/LE).

MMOG/LE, updated by North American and European automotive trade groups with participation from QAD, provides a set of best practices for suppliers to assess their operations in order to achieve a “world-class” materials management and logistics classification, with an emphasis on using automation to ensure measurable results.

The newest version of MMOG/LE has undergone the most extensive review and enhancements since its inception in 2003. This version includes the addition of new visual charts to summarize the organization's current and future state by making the presentation of results more simple and meaningful, particularly for top management.

“As global automotive manufacturers remake their business model, a key component is building efficient supply chains,” said Terry Onica, QAD’s Senior Director for Automotive. “Working with many leading OEM’s and their key suppliers it is apparent that optimizing materials and information flow is a crucial success factor in building efficient supply chains, and critical to regaining margins and profits.”

QAD provides solutions to help simplify the path to compliance with the materials management principles from the Automotive Industry Action Group (AIAG) in North America and Odette International Limited in Europe. Through its thought leadership position, QAD has helped suppliers understand and meet the requirements of MMOG/LE with over 1600 attendees in 14 countries participating in QAD’s MMOG/LE seminars.

“Many of our supplier customers have met compliance while having a positive impact on their bottom line including a 25 to 30 percent reduction in inventory, perfect delivery ratings scores with customers month over month, improved electronic communications with customers and suppliers, and better visibility into all forms of inventory and reduced associated costs,” added Onica.

Additional Information

For more information about MMOG/LE, visit: www.qad.com/mmogle

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies specializing in automotive, consumer products, electronics, food and beverage, industrial and life science products. 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. For more information about QAD, telephone +1 805-566-6000, or visit the QAD web site at http://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 2009 ended January 31, 2009.

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