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QAD & IBM PowerSystem Enterprise Solution Drives Operations at ELSA

26 April 1999

QAD & IBM PowerSystem Enterprise Solution Drives Automotive Operations at ELSA; Affordable and Reliable Windows NT-Based Solution Chosen to Improve Inventory Accuracy

    CARPINTERIA, Calif.--April 26, 1999--QAD , developer of supply chain-enabled enterprise software, announced that ELSA Inc., a tier one supplier of automotive fuel tanks, exhaust systems and other structural base parts, has selected the QAD and IBM PowerSystem enterprise solution.
    The company chose PowerSystem for its ease of implementation, automotive-specific functionality, and the established reputations of QAD and IBM in its industry. "The key strength of QAD software is its automotive focus and ability to be implemented quickly with few resources," said Joe Rauh, director of IT at ELSA.
    "By leveraging those qualities with advanced technology built into IBM Netfinity servers, we have gained a powerful, reliable, and yet affordable enterprise solution to support our operations."
    ELSA chose PowerSystem after talking with other satisfied users and comparing different systems. With the help of Business Support Group (BSG), the company began its "ground up" implementation in September 1998 and has gone live with the ledger and accounting modules. The total system is scheduled to go live on June 1 at ELSA's headquarters in Elwood, Ind., where it will serve 600 users.
    The QAD & IBM PowerSystem solution is one of the most comprehensive, pre-tested, pre-integrated enterprise solutions now available for Windows NT. Each PowerSystem solution includes a complete package of business software, Netfinity servers, database, middleware, and systems management tools.
    Prior to PowerSystem, ELSA was operating on an IBM AS/400 system. The QAD and IBM solution was selected because of its pre-integrated and pre-configured automotive-specific functionality. Using the new system, ELSA is working toward gaining greater control over inventory, which is imperative in the automotive industry.
    "With PowerSystem, we knew that if there were any problems, there were reliable sources to go to for help," said Rauh.
    ELSA was also confident in the PowerSystem because it is supported by QAD, the mid-market enterprise software leader ranked No. 2 in enterprise software for the automotive industry, and IBM, the world's largest information technology company.

    About QAD

    Founded in 1979, QAD is a leading provider of enterprise and extended supply chain management software and services to multinational companies of all sizes, with special focus on the mid-market. Available in 26 languages and able to support multiple currencies, QAD software helps speed business processes for more than 300,000 licensed users at more than 4,000 licensed sites in more than 80 countries.
    Ideal for distributed operations, QAD's MFG/PRO software is specifically designed for global manufacturers in the following targeted industries: automotive, consumer products, electronics, food and beverage, industrial, and medical. Another important advantage is MFG/PRO's quick results wherever sites are located. QAD revenues for the fiscal year ended Jan. 31, 1999, totaled $193 million.
    For more information about QAD, telephone 805/684-6614, or visit the QAD Web site at http://www.qad.com. To receive any of QAD's news releases via facsimile, contact 800/356-0747, or outside the United States, contact 213/253-5647.
    Note to Editors: QAD is a trademark and MFG/PRO(R) 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 news 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 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 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) software industry are subject to fluctuations and the growth rates recently experienced by the company do not necessarily represent future operating results. 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 enterprise resource planning industry, refer to the company's Annual Report or Form 10-K for the fiscal year ended Jan. 31, 1998.