SEOUL, South Korea, Jan 14, 2004 (BUSINESS WIRE) -- Responding to customer demand and to local manufacturing growth in sectors such as the automotive industry, QAD Inc. (Nasdaq:QADI), a leading provider of enterprise applications for global manufacturers, today announced expansion of its operations in South Korea. Today, QAD already has more than 60 customer sites in South Korea including Avery Dennison Korea Co., Black & Decker Korea Co., Ltd., EATON Automotive Controls, Ford Motor Company, Johnson Controls Ltd., Rexall Sundown Inc., Rockwell Automation Korea, and divisions of TRW.

QAD Korea Ltd. will serve as a regional resource for manufacturers in the country, and for South Korean companies using QAD solutions in facilities abroad. Brand-name automotive, consumer products, electronics, food and beverage, industrial, and medical manufacturers use QAD as their enterprise platform at thousands of sites in 80 countries worldwide.

"QAD's expansion in South Korea will address demand for our solutions, and provide the leadership and support to ensure our customers' success," said Tony Yip, QAD Asia managing director. "South Korea is an important market for us, as we continue to enjoy growth in Asia -- where our license revenue increased more than 30 percent in the past year -- and as we continue to benefit from Asian manufacturers' use of QAD solutions at sites they operate in other countries."

Platform for Korean Manufacturers' Expansion

According to the Bank of Korea, Korea's manufacturing sector is expected to drive exports, which in turn will fuel national economic growth in 2004(a). South Korean automotive manufacturers saw export sales surge 30 percent -- to 2.3 million units -- in 2003, and expect this growth to continue in 2004(b). Korea Development Bank reported Korean manufacturers surveyed plan to increase capital spending -- including facilities expansion -- by 12 percent in 2004, with information technology and automotive industries expected to increase investment by 16 percent and by 14 percent, respectively(c).

"From experience, manufacturers find expansion requires upgrading ERP systems to perform at a level consistent with global partners," said KD Kim, QAD Korea country manager. "In addition to enterprise applications built for global manufacturers, QAD has deep expertise in local and global business and regulatory issues. QAD Korea's dedicated consultants can help local manufacturers and multinationals achieve speed and flexibility in facilities and supply chains, here and abroad."

Unlike one-size-fits-all ERP offerings, QAD applications are developed through close work with manufacturers and industry groups in the six markets that QAD serves exclusively. QAD software provides manufacturers in Korea an end-to-end solution for automating enterprise functions, supply chain execution and e-commerce, with a simple dashboard-style interface for managing and controlling operations. In addition to MFG/PRO, applications such as QAD Supply Visualization and QAD Customer Self Service facilitate activities such as vendor-managed inventory (VMI) and distributed order management to improve global supply chain execution.

"Companies based in South Korea have tremendous opportunity to use the latest technology for more efficient operations, and as a foundation for extending their enterprise -- and supply chain," said Pamela Lopker, QAD president and chairman of the board. "QAD has focused on the manufacturing sector for more than two decades, and is committed to its growth in South Korea. We pair the best thinking in manufacturing theory and an understanding of real-world manufacturing conditions, to help customers compete effectively in the global marketplace."

About QAD

QAD enterprise applications leverage advances in Internet and enabling technologies to 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: 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 company's ability to sustain strong licensing demand; the ability to sustain customer renewal rates at current levels; 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; general economic conditions, exchange rate fluctuations and the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP), e-business and distributed order management software industries 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 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, 2003.

    (a) "Korea Sees 5.2% Growth on Strength of Exports," The Wall
        Street Journal, December 11, 2003.

    (b) "South Korean Car Sales Set Record on Strong Exports," The
        Wall Street Journal, January 5, 2004.

    (c) "Capital Spending to Rise by 11%," Korea Times, November 27,
        2003.

SOURCE: QAD Inc.

QAD
Wendy L. Allen, 805-566-6161
wla@qad.com
or
Fleishman-Hillard
Andrew Miller, 415-318-4166
millera@fleishman.com

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