Automotive Supplier Revs up Business with QAD and MMOG/LE

Wagon Automotive, Inc. Improves Customer, Supplier and Intra-Enterprise Communications

SANTA BARBARA, Calif.--(BUSINESS WIRE)--QAD, Inc (Nasdaq: QADI - News), a leading provider of enterprise software and services for global manufacturers, announced today that Wagon Automotive, Inc has deployed QAD Enterprise Applications to meet MMOG/LE requirements. Wagon Automotive, Inc., a subsidiary of Wagon PLC, manufactures structural components and assemblies using roll forming technology, a continuous metal forming method using a series of engineered rolls. In an effort to streamline its internal and external communications, Wagon Automotive, Inc. implemented QAD Enterprise Applications resulting in a reduction in manual intervention and leaned its inventories by 26 percent.

In May 2007, Wagon Automotive, Inc. was challenged to update its manual processes and pass a MMOG/LE (Materials Management Operations Guidelines and Logistics Evaluation) compliancy assessment in order to maintain its relationship with Ford Motor Company. Wagon Automotive, Inc. was using a legacy ERP system that was not interfaced to back office systems or existing Electronic Data Interchange (EDI) applications. Managers relied on spreadsheets to track reporting, which made month-end reporting an onerous task that often took weeks to complete. The company was also facing pressure from current and new customers to become MMOG/LE compliant.

“We work hard to create solutions that truly impact our customers’ businesses. We help them to meet industry standards and proactively review their materials practices while keeping an eye on the bottom line,” said Pam Lopker, president and chairman of the board for QAD. “Our team worked with Wagon Automotive, Inc. to create a solution suite that would meet their needs, from streamlining their supply chain to becoming MMOG/LE compliant and then we worked diligently to install it quickly for maximum impact.”

Wagon Automotive, Inc. knew they needed an ERP solution that could be implemented quickly, and after evaluating their options, they chose QAD for its simplicity and ease of installation. After launching QAD Enterprise Applications, Wagon Automotive, Inc. was able to consolidate ERP, EDI and bar-coding into a unified process that required the least manual intervention possible. This has helped the company improve management of work in process.

“We went from kickoff to live in four months, and it has resulted in improved delivery performance to support consistent operations required for world-class performance. The type of support we got from QAD during our implementation was the only way to achieve these results in a short amount of time,” said Andy Schoenherr, Chief Operating Officer, Wagon Automotive, Inc. “We’ve already had a 26 percent improvement in our inventory levels and booked business that will double our part numbers and revenue. I’m sure that QAD Enterprise Applications will sustain us through this growth and help us reach our goal.”

QAD Global Services guided Wagon Automotive, Inc. through the MMOG/LE self-assessment process, helping the supplier to define the actions required for improvement. With in-depth knowledge of both the automotive sector and QAD solutions, QAD MMOG/LE consultants are well equipped to enable automotive suppliers around the world to meet MMOG/LE standards and improve plant performance. “The QAD consultants are very knowledgeable and they put us on the right track to get where we needed to be. They were able to answer all of our questions, mostly from their own knowledge base, without having to contact somebody else,” says Schoenherr.

QAD Enterprise Applications are designed to streamline the management of manufacturing operations, supply chains, financials, customers, technology and business performances all in one suite. Built on a deep, foundational understanding of manufacturing and designed for maximum flexibility anywhere in the world, QAD Enterprise Applications are available in 27 languages and can handle multiple currencies. For both single-site manufacturers with customers and suppliers in many locations around the world, and global enterprises with factories and plants in dozens of countries, QAD can provide the solutions and support to operate multi-national businesses efficiently and profitably.

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 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 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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