QAD Continues Growth in Support of Manufacturers in Southwest China - Latest Direct Office Opens in Chongqing

CHONGQING, China (Business Wire EON) April 29, 2008 -- Chongqing is an important base for manufacturing, serving as a hub that connects the entire southwest market of China. QAD started serving Chongqing clients in early 2001. With local customers increasing, QAD felt a strong need to set up a direct office in the region to help meet the needs of existing customers and help QAD fully develop the market's potential.

QAD's customers in the southwest region include well-known manufacturers such as Chongqing Cummins, Chongqing Lear and Chongqing Loncin. These leading companies have demonstrated world-class implementations of enterprise resource planning (ERP) software, as well as information management experience. QAD is tapping into the local manufacturing expertise by initiating the Chongqing Manufacturing Executive Group. The group's mission is to provide a knowledge exchange platform for local manufacturing executives and assist them in their quest for innovative breakthroughs that address economic environmental shifts and industry trends. Through knowledge sharing, QAD hopes participants will see their operational management reach a higher level.

Local QAD customers as well as government officials, concerned about information management attended the opening ceremony. In the recent past, 'Made in China' has becomes a hot topic. Remaining competitive in today's global marketplace means providing a quality product that meets a market demand and comes with a cost-effective price. The government fully promotes the use of efficient and modern manufacturing management techniques and technology to achieve these goals. Therefore, local government will heartily welcome investment from companies like QAD in Chongqing because they bring international manufacturing expertise to our region and will help us stay competitive in the global market.

"Manufacturing in the southwest China area has strong potential," said Mr. Miao Qing, Managing Director for QAD China. "In recent years, we've seen a number of innovative, re-vitalized enterprises emerge. These companies, with government guidance and support, have improved their ability to manage information and use it to make strategic manufacturing decisions. QAD is determined to grow with these local manufacturers, help them enhance their global market competitiveness and provide ways to share knowledge so everyone's business can benefit."

Inspired by the vision of 'Best IT Partner of China Manufacturers', QAD China grew its business by 30 percent in 2007. QAD China has formed strategic partnerships with many large manufacturing enterprises such as Jinheng, one of the largest automotive safety system manufacturers, and A.O. Smith, an international electronic appliance producer.

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 2007 ended January 31, 2008.