QAD Applications Emerge as an Enterprise Software of Choice for China Automotive Sector; Trend Positions QAD for Growth in Region

    SHANGHAI, China--March 11, 2003--QAD , a leading provider of enterprise applications for global manufacturers, continues to mark healthy sales momentum in Asia, with its flagship MFG/PRO suite becoming a platform of choice for automotive manufacturers in China to automate business operations and collaborate seamlessly and efficiently with partners worldwide. As a result, QAD is well-positioned to capitalize on continued growth in the region.
    Since opening offices in Shanghai nearly a decade ago, QAD now serves 300 customers in China including leading automotive, electronics and consumer products manufacturers. Sixteen of the world's top 25 automotive manufacturers depend on QAD's advanced technology to manage their business and operations, and in China 53 automotive joint ventures and customers such as Ford, Daewoo, Lear, TRW, Delphi, Visteon, Hyundai and Eaton have chosen QAD's world-class MFG/PRO suite for mission-critical operations such as manufacturing, financials, and supplier relations. Global electronics producers such as Applica, Lucent, Mitsubishi and Philips, and consumer products manufacturers including Avon, Coca-Cola and Sara Lee rely on the QAD platform for manufacturing enterprise operations as well.
    "Manufacturers in China, and especially the automotive sector, have embraced QAD MFG/PRO and find the low total cost of ownership and fast time to implementation most compelling," said Paul Henderson, QAD vice president, Asia Pacific. "Unlike the mega-suite ERP offerings, QAD's vertically focused applications are easier to implement and maintain -- qualities that are highly in-demand in the Chinese market. In fact, QAD has made it possible for many of our customers to automate and streamline enterprise functions in just a few months, and to introduce leading manufacturing practices such as lean manufacturing and kanban."

    Platform for Growth

    The automotive industry has witnessed explosive growth in China as foreign manufacturers seek to profit from favorable economic conditions and the lower cost of operating there. According to the China Association of Automobile Manufacturers, domestic output of motor vehicles between January and November 2002 jumped 36 percent from production in 2001. The association reported sales of China-made automobiles also rose by more than 36 percent in the same period, due in large part to the increase in new products launched by local manufacturers, especially Sino-foreign joint ventures.
    The surge in activity has jump-started competition, too, putting pressure on Chinese manufacturers to upgrade their ERP systems to function on par with their foreign partners and new entrants to the market. Many of these companies are choosing QAD applications to create a foundation for consistent operations and communication across multiple locations, new and old plants, and different manufacturing models.
    PolyOne, the world's largest provider of polymer, elastomer, colorant and additive products and related services, has implemented QAD MFG/PRO applications for manufacturing, financials, and distribution in its Suzhou and Shanghai plants. Serving automotive manufacturers as well as customers in industries as diverse as plastics, cable and cosmetics production, PolyOne has streamlined its manufacturing operations to become a more responsive trading partner. The company completed its first implementation of the QAD platform in 2001, and will deploy it in Singapore and Thailand as well.
    "QAD MFG/PRO quickly brought our technical capabilities up-to-date so that we were able to collaborate with partners using complementary software tools," said Mr. Johnson Cheng, IT manager of PolyOne Asia. "Our success using QAD applications has improved our efficiency and boosted our ability to compete."
    QAD's applications provide manufacturers in China with a comprehensive solution for automating back-end processes from ERP to supply chain management and e-commerce, with a simple dashboard-style interface for managing and controlling operations. In addition to MFG/PRO, QAD offers applications such as QAD Supply Visualization and QAD eQ that help facilitate activities such as vendor-managed inventory (VMI) and online order and transaction management that enable manufacturers to engage in collaborative commerce with trading partners. QAD offers manufacturers in China cost-effective license and service packages and pricing options that suit their needs as well.
    "China presents an extraordinary opportunity for companies to build from the ground up a production infrastructure that takes advantage of the latest technology and standards," said Pamela Lopker, QAD president and chairman of the board. "Having focused on the manufacturing sector for more than two decades, QAD is committed to its growth in China. We are bringing companies the best thinking in manufacturing theory and an understanding of real-world manufacturing conditions, so that they can compete effectively in the global marketplace."
    To support customers and continued growth in the region, QAD has established alliances for technology and implementation. QAD is one of IBM's preferred software providers for Japanese customers with manufacturing operations in China, and has been selected by IBM as a key solution provider in the automotive vertical. QAD has partnered with hardware providers HP and Sun in the region as well. Distribution partners include Atos Origin, SCS, Softspeed, eSun, TSnT, and Dalian Hualu. QAD is also expanding its staffing as its customer base grows, to ensure the highest quality direct support for its software.

    About QAD

    QAD delivers value through collaborative commerce for manufacturers, empowering enterprises to integrate diverse business processes and increase profitability. Manufacturers of automotive, food and beverage, consumer, electronics, industrial and medical products use QAD applications at approximately 5,200 licensed sites in more than 80 countries and in as many as 26 languages. For more information about QAD, telephone +1 805 684 6614, or visit the QAD Web site at: www.qad.com. To receive any of QAD's press releases via facsimile, contact +1 800/356-0747, or outside the U.S. contact +1 213/253-5647.

    "QAD" and "MFG/PRO" are registered trademarks 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 publication of opinions by industry analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; difficulties relating to integration of a new business; the entry of new competitors and their technological advances, delays in localizing the company's products for new markets; 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; and general economic factors. In addition, revenue and earnings in the enterprise resource planning (ERP), e-business and collaborative commerce software industries are subject to fluctuations. Investors should not use any one quarter's results as a benchmark for future growth. 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 the fiscal year ended January 31, 2002.