Tom Buffo Director – Product Management, QAD Inc September 24, 2007

1. QAD Enterprise Applications September Launch 2007 Future Product Direction Tom BuffoDirector – Product Management, QAD IncSeptember 24, 2007

2. Agenda • QAD’s Vision • Product Strategy • Where we have been • Where we are today – QAD EA 2007 • Where we will be tomorrow – QAD EA 2007.1 • Next Years View – QAD 2008 • What the future holds

3. About QAD • A leader in providing ERP and supply chain execution software applications and services to global manufacturers in six verticals: • Automotive • Consumer Products • Electronics • Food and Beverage • Industrial • Life Sciences • FY07 Revenue: $235 million • Core Product: QAD Enterprise Applications • (MFG/PRO)Employees: >1640 • Headquarters: Santa Barbara, CA • Founded: 1979 • Ticker: Nasdaq:QADI QAD applications in use in: • 5,800 licensed sites in more than • 90 + countries and • 27 languages Offices in: • 26 countries GLOBAL REVENUE MIX North America 43% | EMEA 34% | Asia Pacific 16% |Latin America 7%

4. Global & Vertical Revenue Life Sciences 12% LatinAmerica 7% NorthAmerica 43% Automotive 30% Europe, Middle East, & Africa 34% Electronic/Industrial 40% Consumer Product/ Food & Beverage 18% Asia Pacific16%

5. QAD’s Vision: The Perfect Lean Market Automation Connectivity Collaboration Standards Systems

6. Product Direction Evolve the QAD application suite to support Global Manufacturing Companies in selected Vertical Markets In Pursuit of the Perfect Lean Market

7. Important Business Issues Source: AMR Research, Enterprise Resource Planning Spending Report, 2006-2007

8. Where we’ve been Enhanced Product Line / User Interface GLOBAL ENTERPRISE EDITION JUST IN TIME SEQUENCING ENHANCED CONTROLS MOBILE FIELD SERVICE PRODUCTION SCHEDULER WORKBENCH CONFIGURATOR .NET UI DEMAND MANAGEMENT DISTRIBUTED ORDER MANAGEMENT

9. Where we’ve beenEnhanced Product Line / User Interface MANUFACTURING EXECUTION WORKBENCH ENTERPRISE ASSET MANAGEMENT TRANSPORTATION MANAGEMENT SALES FORCE AUTOMATION MARKETING AUTOMATION .NET UI 2007 QAD ENTERPRISE APPLICATIONS 2007

10. QAD Enterprise Applications 2007 Where we are today

11. QAD Enterprise Applications 2007 global platform

12. QAD Enterprise Applications 2007 On Demand On Appliance On Premise Deployment Independence

13. QAD Enterprise Applications 2007 QAD Marketing Automation QAD Sales Force Automation QAD Demand Management QAD Enterprise Asset Management QAD Transportation Management System QAD .NET UI

14. Improves forecasting and inventory planning Improves forecasting Historical information Collaboration from all around the organization Improves inventory planning Safety Stocks Service Levels Order Points Improves customer service Ensures the right product at the right time, cost effectively Enables more effective new product introduction QAD Demand Management 2007

15. Improves sales person productivity Grows revenue through better control, visibility and productivity Lead/Opportunity Management Contact Management Sales Activity Management Funnel management Sales Quote and Order Management Sales Targets and Forecasts Effectively and efficiently drives movement of prospects through customer value chain QAD Sales Force Automation 2007

16. Creates targeted lists focusing campaigns on high-probability prospects. Facilitates creation of detailed budgets and accurate tracking of campaigns costs Supports campaign execution Mailing lists and preferences Literature/brochure request fulfillment Installed base marketing Personalized mailers or emails QAD Marketing Automation 2007 Improves the efficiency of lead-generating activities

17. Tracks and control capital project spending Increase production capacity by improving equipment reliability Eliminate unnecessary purchases and right size MRO inventory Suite of three solutions Capital Projects Plant Maintenance MRO Supply Chain QAD Enterprise Asset Management 2007 Creates smooth operations environment with visible bottom-line results

18. QAD TMS made up of 3 modules Freight Management Global Trade Management Trade Compliance Helps control your business processes through dynamic workflow Proven business processes combined with configured customer information powers your operation QAD Transportation Management System 2007 Streamlines transportation processes while reducing costs and ensuring global compliance

19. New workspace screens allows for flexible data viewing and editing New browse allows for quick modification or creation of browses Browses with charting allow for highly customize graphical views Quick and easy output to Excel New Favorites provides useful new menu selection Powerful new Product Structure/BOM Maintenance QAD .Net UI 2007 New User Interface matches the best in the industry

20. QAD Enterprise Applications 2007.1 Where we will be tomorrow

21. QAD Enterprise Applications 2007.1 QAD .Net UI QAD Transportation Management System September Launch QAD Business Intelligence QAD Supply Visualization QAD QXtend QAD Applications 3rd Party Application Web Services

22. Provides supplier self-service visibility Invoices Bills of material Remittance Document management system Memo items Provides alerts and event-based management Supports Lean Supply Processes Vendor Managed Inventory (VMI) Kanban replenishment Interfaces with any ERP system QAD Supply Visualization Improves collaboration with supply chain

23. QAD SV – Label Printing Custom Label Printing capabilities • Shipping, quick receive & Container • AIAG & Odette labels (simple, master & mixed) • Specify labels by customer & supplier • Future interface to TMS Label Engine

24. Integrated with QAD TMS In-transit Shipment Visibility Shipment detail information Alerts with tolerances for each transit check point Manage by exception QAD SV – Logistics Track & Trace Keep informed of incoming shipments with Logistics Track and Trace

25. New Module New Module New Module Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Trade Compliance – US Import Management Freight Approval Desktop Shipping Transportation Tracking Freight Management – Auto Vehicle Routing Freight Management– Multi-leg Consolidation QAD Transportation Management System New with QAD 2007.1

26. EMEA NA APAC LA QAD TMS -Transportation Tracking • Event tracking to view where products are in the supply chain • Configurable rules based engine for building “Shipping Plans” • Understands the impact of weekends, holidays and carrier schedules on ETA’s • Missed milestones trigger alerts by Email, SMS or other electronic means • Fully integrated with QAD’s Supply Visualization Portal Global Supply Chain Visibility

27. QAD Desktop Shipping • Most non-production parcel spend is managed at the local level • Desktop shipping allows control to leverage rates, control process and mitigate risk • Works across multiple carrier modes; parcel, road, rail, ocean, air • Already integrated to 30+ carriers around the world The power of production shipping at your desktop 27

28. A configuration toolset Integration without coding Well-suited when there are many and/or business critical integration points New with 2007.1 Data Synchronization capabilities Better usability and performance QAD Applications 3rd Party Application Web Services QAD Applications QXtend A vital part of an Enterprise Application Integration (EAI) strategy Applications Applications

29. Monitor, Measure, Manage Dashboards Monitor: Display information in context of roles/responsibilities Business Analysis “On-Line Analytical Processing (OLAP)” Measure: Learn quickly about business performance Scorecards, Corporate Performance Management Manage: “build a business” (set targets) Access / Distribution Access to users outside firewall Security/auditing on report access Scalable to large numbers of users QAD Business Intelligence

30. New with QAD 2007.1 Integration with .Net UI Single sign-on Leveraging .NET UI features, improved look and usage Multi-layered Data warehousing Accommodate companies with older versions of Progress Improved support for time zones Performance Improvements Dashboards By role, Key Performance Indicators views Added Templates to manage dashboards QAD Business Intelligence

31. September Release Highlights Enhanced usability of browse maintenance Improved workspace screen Enhanced Favorites Process Map Editor enhancements QAD .Net UI 2007.1

32. Graphical view Database structure Inline editing Drag and Drop manipulation browse Save As – to easily copy a browse Browse Maintenance Powerful new functionality 34

33. Tuned for better performance Support for Collections Search function usability improved New edit function Workspace Screens Flexible data viewing and editing 35

34. Launch applications from desktop Menu collections can be saved Added nested process maps Favorites Improved menu section 36

35. Entire system map based on SCOR Supply-Chain Operations Reference Edit in place Breadcrumb navigation Enhanced editor Add individual maps to Favorites Enhanced Process Maps New features and templates 37

36. QAD Enterprise Applications 2008 Where we will be next year

37. Usability: Focus on Human Engineering New Capabilities in Distribution / Manufacturing Centralization / Standardization / Shared Services Single code base for Internationalization Internal Controls - Corporate Governance QAD Enterprise Applications 2008 Focus Enterprise Financials New Customer Management Features

38. QAD Enterprise Applications 2008 • Focus on efficiency and usability: • Lean concepts, eliminate non-value-added steps • Corporate Management Reporting: • Multi-GAAP reporting • System-wide management currency • Financial Shared Services • Financials are more than accounting: • Budgeting, controlling, allocations, consolidation, … • Corporate Governance / Compliance / SOX • Role based security, segregation of duties • Power tools for the financial knowledge worker • Workflow • Document management • Extensive XLS integration • .NET UI with low learning curve

39. Status QAD 2008 • Early Adopter release available • July initial EA release on appliance • Aug final EA release on appliance • Sept initial EA release on premise • GA release expected March 2008

40. Early Adopter customers

41. QAD 2008 moving towards the Perfect Lean Market • Becoming one business • Support the need of different business divisions • Running one system across the entire corporation • Standardizing data and processes • Sharing financial services • Eliminating duplicate data entry • Setting up global transparent activities • Reporting: management, financial and government • Getting it right the first time • Staying flexible • Flexible structures, combining legal and organizational hierarchies • Corporate restructures • Based on Lean principles

42. Active Projects • Enhanced SV with TMS integration • New version of Configurator • Enhanced DOM with Configurator and CSS • QAD Warehousing with TMS integration • New .NET UI Version of Repetitive/Work Order Production Scheduling Workbench in QPS • New Manufacturing Execution Workbench Module • New .NET UI Version of EAM • Major feature uplift of SFA and MA, new UI, 360° View • Continue improve of .Net UI • Joint Development

43. Strategic Directions • Internal round of strategy meetings concluding • Customer Advisory Discussions Underway • Validate Strategy • Strategy Refinement • 2 Year Roadmap at next users group • R&D Usability Sessions – Monday & Tuesday • Sign up at Registration Desk (Brent Shooltz) • 1:1 discussion

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