QAD Opens Research and Development Center in China -- Further Initiatives in Support of QAD's Global Presence

QAD Inc. (NASDAQ: QADI), a leading provider of enterprise applications for global manufacturers, today announced that it has established a new QAD Research and Development Center in Shanghai to support development of its award-winning MFG/PRO software applications.

CARPINTERIA, CA December 10, 2004 -- QAD Inc. (NASDAQ: QADI), a leading provider of enterprise applications for global manufacturers, today announced that it has established a new QAD Research and Development (R&D) Center in Shanghai to support development of its award-winning MFG/PRO software applications. Hong Yuan will lead the new R&D operations in China as engineering manager, and the company anticipates that up to 50 software engineers and related technical resources will work at the facility by the end of 2005. The QAD R&D Center in Shanghai augments QADs existing R&D Centers in the United States, Australia, Spain, India and Ireland.

The selection of the Shanghai site took into account a detailed analysis of criteria ranging from outsourcing trends to customer growth, as well as business and education conditions. Recent examples of current business conditions include such indicators as the China Ministry of Information Industrys August announcement outlining plans to establish research and development centers in eight cities, and the 20-percent increase in the nations investment in science and technology in 2003. Additionally, since August, technology firms from Cisco to Siemens, Veritas and Motorola have announced their expansion of R&D efforts in China, and are among more than 600 firms that have established such facilities in the region.

QAD applications have brought YanFeng Visteons manufacturing operations to world-class standards so that we can compete and collaborate effectively with local and multinational firms, said Xie Bing, general manager of YanFeng Visteon, an automotive joint venture between the Shanghai Automotive Industry Corporation and Visteon International. We believe the location of QADs new R&D facilities will be mutually beneficial: QAD developers will have firsthand insight into the technology requirements of customers sites in China, and the services and support QAD provides us will be informed by access to and understanding of software features that are in development.

In addition to the assessment of Chinas suitability for R&D, QADs site selection reflects the companys recognition of the global nature of manufacturing, and its commitment to operate where customers require QADs presence. The establishment of research and development in Shanghai follows on software development operations established in Limerick, Ireland in 1998 and Sydney, Australia in 2001.

As a hotbed of growth for our customers and manufacturing overall, China is an ideal choice for expanding our research and development capabilities, said Vince Niedzielski, QAD executive vice president, research and development. QAD is committed to providing manufacturing customers around the world with software solutions that address their need to centralize processes and accommodate local operations. In our new Shanghai R&D Center, we will be building not only products for the local China market, but for the entire world.

QAD established its Shanghai office more than a decade ago, with a focus on the automotive industry. Today, QAD serves leading electronics and consumer products manufacturers, as well as automotive suppliers. In the China Auto Industry Suppliers Survey published earlier this year by the Economist Network and AMT, a Chinese market research firm, more than half of Chinese automotive suppliers using enterprise applications were reported to have selected QAD solutions.

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 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: 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.

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