Criteria Including Leadership, Strategy, Process, Management Determine Qualification of QAD Support in North America, Europe, Asia

CHARLOTTE, N.C.--(BUSINESS WIRE)--May 24, 2004-- QAD Inc. (Nasdaq:QADI), a leading provider of enterprise applications for global manufacturers, today announced it has received HDI Support Center Certification in the United States, Australia and Spain. HDI is the world's largest membership association for service and support professionals and the premier certification body for the industry. The simultaneous accomplishment by sites in three major geographic regions earns QAD global certification status -- and constitutes an unprecedented milestone for support, according to HDI. The HDI-certified sites are deemed to deliver world-class support resulting in consistently high customer -- and employee -- satisfaction.

The only open industry standards program for certification of the support industry, HDI's prestigious Support Center Certification required QAD meet demanding criteria in eight categories that reflect international quality standards. A rigorous evaluation by independent auditor Optimal Connections, a consulting services company, included interviews with QAD support management and personnel as well as a review of all policy and process documentation, and finally, extensive interviews with QAD customers.

Upon analysis of audit results, HDI determined certified QAD locations excelled consistently in categories including leadership, strategy, process and management of QAD staff. In addition, customers interviewed cited QAD support centers' responsiveness, speed, use of technology and their knowledgeable personnel.

"We are pleased to see QAD become the first company to achieve global HDI Support Center Certification across three regions of the world simultaneously," said Ron Muns, founder and CEO, HDI. "The company excelled at providing top-quality support, and QAD's customers were complimentary of the knowledgeable and solutions-oriented QAD support professionals. QAD customers will benefit from the company's strong commitment to quality and leadership in the area of customer support."

"The HDI-certified QAD support centers demonstrate consistently high-quality service, and its staff has the leadership and resources necessary to best help their customers," said Paul Dooley, president and principal consultant, Optimal Connections, an HDI Support Center Certification auditor. "It was clear to us that the HDI Support Center Certification program was designed to be flexible enough to serve as a quality benchmark for all support centers -- even in an ambitious, global, multi-site certification initiative such as that undertaken by QAD."

The qualifying QAD support centers represent the first phase of QAD's support certification initiative. QAD is pursuing HDI Support Center Certification for support sites in the United Kingdom, the Netherlands, Mexico and Hong Kong, and expects to complete the process in the summer of 2004.

"We're proud that HDI has validated QAD support's world-class performance," said Pam Lopker, QAD chairman and president. "With more than 20 years' focus on manufacturing, QAD is committed to helping customers solve their real-world manufacturing challenges. HDI Certification confirms they can be confident QAD support is always timely, effective and consistent with the highest standards defined by the industry."

With more than 7,500 members who represent companies including 90 percent of the Fortune 500, HDI is the world's largest trade association for the service and support industry. HDI committee members from around the world evaluate HDI SCC program applicants on more than 60 standards statements in eight categories including:

• Effective leadership;

• Policy and strategy that help support teams contribute to QAD's business goals;

• Resources comprising the technology and tools necessary to assist customers;

• Effective management that motivates productivity;

• Process and procedure to ensure success;

• Performance-based operation to drive excellence; and

• Loyal customers and personnel.

HDI Certification criteria are consistent with international quality standards from organizations including the European Foundation for Quality Management (EFQM), the Malcolm Baldridge National Quality Awards, IT Infrastructure Library (ITIL), Capabilities Maturity Model (CMM), and ISO9000. QAD support centers achieved required scores on all criteria as defined by the HDI standards committee.

About HDI

HDI is the world's largest membership association for service and support professionals and the premier certification body for the industry. Founded in 1989, HDI's mission is to lead and promote the customer service and technical support industry by empowering its members through access to timely and valuable industry information, including reports and publications; encouraging member collaboration through events and online forums; and establishing internationally recognized, standards-based industry certification and training programs. In addition to membership, certification, and training, HDI produces the highest-rated industry event, the HDI Annual Conference and Expo, for customer service and technical support professionals. HDI is member-focused, and remains vendor-neutral in its efforts to facilitate open, independent networking and information sharing within the association network. HDI has more than 7,500 members worldwide, (including 90% of the Fortune 500), and more than 50 active U.S. chapters. For more information, visit www.thinkhdi.com.

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, 2004.

CONTACT:
QAD Inc.
Wendy L. Allen, +1 805/566-6161
wla@qad.com
or
Fleishman-Hillard
Jamie Leicht, +1 619/237-7711
leichtj@fleishman.com

SOURCE: QAD Inc.