[March 20, 2013]

Upgrade to QAD Enterprise Applications Allows Industrial Manufacturer to Realize Benefits in Less than One Month

QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise software and services for global manufacturing companies, today announced British Encoder Products Corporation completed its technical upgrade to QAD Enterprise Applications across the enterprise. The leading industrial manufacturing company decided to upgrade and standardize on a single instance of QAD Enterprise Applications to enhance and align business processes with company strategies.

QAD worked closely with British Encoder Products to plan, communicate and manage the upgrade process. Utilizing the QAD Q-Scan diagnostic services, QAD and British Encoder Products reviewed the system configuration to recommend an optimal plan to standardize processes and improve efficiencies. "An ERP upgrade is a major commitment of IT and business resources," said Steve Evans, general manager at British Encoder Products. "But the QAD Q-Scan allowed us to clearly see that the upgrade to QAD Enterprise Applications would allow us to unlock far greater value from our ERP system. QAD Global Services delivered the experise we needed to select the right upgrade path. We understood where we would derive the most value and created a very comprehensive upgrade plan."

Upgrade Delivers Benefits in Less Than One Month

British Encoder Products completed the upgrade in four months. As a result, British Encoder Products is aligning operations to strategic goals for enhancing service quality. "In less than a month, we've already seen the benefits of upgrading to the latest capabilities of QAD Enterprise Applications," said Evans. "We're utilizing modern best practices embedded in the system to operate more efficiently while delivering service excellence."

The upgrade to QAD Enterprise Applications is delivering business benefits across British Encoder Products' daily operations:

• New functionality and processes allow greater efficiency and support of best practices across the enterprise in all areas including sales-order processing
• A contemporary user interface (UI) promotes user adoption and improves productivity
• Better access to data enables rapid, near real-time generation of reports in seconds, down from more than 10 minutes per report with the legacy system
• Enhanced visibility into key product information allows British Encoder Products sales and marketing teams to improve customer service levels.

"Our ERP system is a key part of our IT strategy, and also one of our most essential business assets," stated Evans. "QAD Enterprise Applications offers British Encoder Products a solid foundation upon which to drive competitive value today and in the future."

"QAD Global Services is laser-focused on empowering our manufacturing customers, like British Encoder Products, to plan for upgrades that ensure the reliability of mission-critical applications," said Anton Chilton, senior vice president, Global Services at QAD. "At QAD, our vision is to help our customers align processes to business strategy, operate at peak performance and become a more Effective Enterprise."

For more information about QAD solutions and services, please visit: www.qad.com.

About British Encoders Products Corporation

The Encoder Products Group is a global manufacturer of premium rotary incremental and absolute encoders used for motion feedback. The encoders are available worldwide to qualified OEMs by direct sales and through a well-trained network of electrical, motion control and industrial distributors. Their head office is based in Idaho, United States, and the European Division (British Encoder Products) is located in Wrexham, UK.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies specializing in automotive, consumer products, electronics, food and beverage, industrial, and life sciences products. 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. For more information about QAD, telephone +1 805-566-6000, or visit the QAD web site at 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. Words such as "expects", "believes", "anticipates", "could", "will likely result", "estimates", "intends", "may", "projects", "should", and variations of these words and similar expressions are intended to identify these forward looking statements. Forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and future conditions. 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 license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; 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; timely and effective integration of newly acquired businesses; general economic conditions; exchange rate fluctuations; and, the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP) software industry 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 performance. 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 fiscal 2012 ended January 31, 2012, and in particular, the section entitled "Risk Factors" therein, and in other periodic reports the company files with the Securities and Exchange Commission.

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