QAD Product Update

1. QAD Product Update Paul Knopf Vice President Technology

2. Today About QAD QAD Global Footprint 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 and life sciences QAD applications in use in: –5,800 licensed sites in more than – 90+ countries and – 27 languages Offices in: –26 countries FY08 Revenue: $262 million Core Product: QAD Enterprise Applications 2008 (MFG/PRO) Employees: ~1,600 worldwide Headquarters: Santa Barbara, CA Founded: 1979 Ticker: Nasdaq: QADI

3. Aberdeen Group Surveys ERP Users • Independent study by Aberdeen Group, June 2008. • Surveyed 600+ companies between $50M – $1B in revenue. • No customer references provided by ERP vendors. • Based on actual results defined by customers’ deployments. • Included only vendors with sufficient customer responses.

4. QAD Shows Lowest TCO over 3 years • (Software fees) + (Services) + (Annual Maintenance) • QAD came in:  10% less than 2nd place (Epicor)  35% less than SAP  24% below avg. mid-size firms’ TCO

5. QAD Shows Best ROI, too! • Separate from the lowest cost, QAD also excelled in ROI… • QAD came in:  17% better than 2nd place (Infor)  29% better than SAP  19% better than avg. mid-size firms

6. Why Upgrade?

7. Upgrade Considerations • Take advantage of new functionality • Reduce customizations • Reduce operational costs • Respond to globalization and consolidation needs • Increase user productivity • Ensure compliance • Optimize application and system performance • Drive Lean principles throughout the organization

8. Business Optimization Assessment – Q-ScanTypical Benefits • Impact of Enterprise Financials: • Productivity, Efficiency(i.e. Consolidation, globalization, control, change, .NET UI interface, etc.) • Effectiveness(i.e. Simulation, modeling, budgeting, cost control, etc.) • Gain greater insight into business driverswhen planning and forecasting……… • Avoidance(i.e. Governance, Risk, Compliance, credit mgt, tax, etc.) • Top Line(i.e. Acquisition assimilation, cost simulation, AR analysis, etc.) • Total Cost of Ownership(i.e. implementation, infrastructure, on-going support, etc…… • Optimizeworking capitalandcash flow

9. Business Optimization Assessment – Q-ScanTypical Benefits • Impact of Enterprise Non-Financials: • Reduce Operating Costs(i.e. inventory visibility, streamlined change control, warehouse data automation, automation of trade sales agreements, etc.) • Streamline Order Fulfillment(i.e. cross-sell/up-sell, required ship schedule netting, flexible customer calendars, reduced version identity mistakes, etc.) • Ease External Partner Communication(i.e. subcontract visibility, subcontract shipper maintenance, subcontract shipment control, etc.) • Merger & Acquisition Support(i.e. automate product line management, inventory transfer, etc.) • Fulfill Regulatory Compliance(i.e. control maintenance of customer and supplier price lists – separation of duties and SOX requirements )

10. Business Optimization Assessment - Process Capture the Value • Sign off on Solution • Process Change and Training • Solution Implementation Senior Management Presentation • Deliver Executive Presentation • Workshop Findings • Agree Value Proposal Prepare Deliverables • Validate Financial Model Results • Develop Executive Presentation • Review, Approve with Sponsor (Signoff) Analysis and Follow-up • Feedback Discovery • Validate Data • Populate Financial Model On-site Discovery • Interview Process Participants • Observe Business Processes • Tour Operations • Identify Executive and Process Level Sponsors • Make Preliminary Contacts, Identify Process Participants • Complete Discovery Questionnaire Pre-Work

11. Architecture Presentation Exposed Services QXtend EDI Business Services Data Access Platforms

12. Deployment Options Total Flexibility On Demand On Appliance On Premise

13. Selective Centralization: Domain Architecture • Shared Services • Sarbanes-Oxley & local regulatory compliance • Industry compliance • Enterprise integration • Flexible global deployment • Common data throughout the enterprise • Global governance and compliance • Enhanced interoperability & integration WASHINGTON MADRID TOKYO MEXICO CITY SYDNEY The Global Enterprise = Synchronized Data

14. Benefits of Domain Architecture • Facilitate the on and off ramping of company acquisitions / divestitures • Globalize only on those business processes that make sense • Enjoy the benefits of local business process autonomy when and where needed • Consolidate to the right number of instances for the world

15. QXtend provides Services and lays the foundation for SOA @ QAD QAD QXtend Inbound QAD QXtend Outbound QAD MFG/PRO Services Services QAD MFG/PRO QAD MFG/PRO

16. Customize / Adapt the application without changing Source code QAD Integrated Customization Toolkit Security / Role Model QAD Standards Tracking & Tracing Control & Debugging User Interface Business Logic Database

17. Vision “Delivering software for a new generation of users – delivering real advantage to our loyal customers and striving for the Perfect Lean Market” Pam LopkerFounder, President & Chairman

18. A New Generation

19. Strategy “Focusing on our customers first, their industries and their markets ensures we maintain a competitive advantage” Karl LopkerChief Executive Officer

20. Commitment to Innovation QAD Strategic Steering Committee QADCustomers QAD Product Review Committee IndustryStandards VerticalMarket AnalystsResearch Industry Roadmap ProductRoadmap Product Definition CompetitiveAnalysis INSIGHT™ CustomerRequests QAD Field Feedback QAD SupportFeedback QADPRC CustomerAdvisory Groups Development Groups Technical Foundation Collaborative Development

21. total enterprise capability Enterprise Resource Planning Enterprise Asset Management Product Lifecycle Management Demand ManagementSales Force Automation Marketing Automation Transportation Management Product Information Management

22. QAD Enterprise Applications 2008 • Standard Edition (SE) • new capabilities • new user interface • standard financials

23. QAD Enterprise Applications 2008 • Enterprise Edition (EE) • new capabilities • new user interface • new enterprise financials

24. Finance TMS PIM Finance EAM Service HRIS SFA & CRM Distribution Manufacturing/SC PLM

25. QAD Enterprise Financials • Leader in financial applications for global manufacturing companies • Focus on efficiency and usability • Compliant with global regulations

26. QAD 2008 Enterprise - Financials Enterprise Financials Financial Analytics Management Reporting Multi-GAAP Budgeting Governance, Risk and Compliance • Business visibility: Focus on Analytical Accounting & Reporting • Business agility: Focus on Management information flexibility • Business optimization: Focus on Financial Shared Service Centers • Business efficiency: Productivity tools for the Financial Knowledge worker Consolidations Allocations Financial Shared Services Credit Management Tax Management General Ledger Multi Currency Accounts Payable Banking/Cash Management Cost Management Accounts Receivable Fixed Assets Enhanced Controls Vertex Sales and Use Tax Interface Logistics Accounting

27. Financial Compliance Drivers Single Euro Payment Area 20022

28. GAAP or IFRS?

29. Financial Roadmap • Internationalizations – On Going • Track Regulatory Trends and Changes • XBRL Support • Expense Note processing • Enhanced Consolidations and Eliminations • Continue with Analytics and Reporting • Drill down and Drill through • New Fixed Asset Module

30. Customer Management TMS PIM Finance EAM Service HRIS SFA & CRM Distribution Manufacturing/SC PLM

31. QAD Customer Management Drivers • Outstanding Customer Experience • One Face to the Customer • Outstanding User Experience • Role-Based Interaction • Easy to Use and Designed to Perform • Integrated Business Processes • Analytics

32. Customer Management Roles External Customer/Partner Web Order Entry Configured Products Collaborative Planning Web-based Services Information Access Marketing Campaign Management Lead Management 360° View & Analytics Sales Status Install Base Sales Rep/Mgr Sales Activities Collaborative Planning Service Status 360° View & Analytics Customer Service Rep (CSR) Global Order Management Shipping and Invoicing Service and Support Configured Products 360° View & Analytics Service Rep/Mgr Warranty and Contracts Call Center Installed Base Engineer Scheduling Sales Status 360° View & Analytics

33. CRM – Sales and Marketing Automation 33

34. Customer Self ServiceExternal Customers and Partners

35. Configurator

36. Distributed Order Management (DOM)

37. Order Management Roadmap • Usability • CRM Contact Center for Internal and External users • Sales Orders and Quotations • Configurator • Version Independent • Simpler Configuration Management • Integration • Configurator and CSS • Distributed Order Management/CSS/Configurator • Analytics and Reporting

38. Service and Support Roadmap • User Roles • CRM Contact Center for Internal and External users • Web-based services • SSM customer enhancements • Dashboards • Field Service • Statement of Work (SOW) and customer signature • Enhance integration with QAD FSS and QAD Mobile

39. Manufacturing TMS PIM Finance EAM Service HRIS SFA & CRM Distribution Manufacturing/SC PLM

40. QAD in Manufacturing • Manufacturing Focus • QAD Enterprise Applications: • APICS and Beyond • Industry Standards • Vertical Support • Functional Depth and Breadth • Vision - The Perfect Lean Market

41. QAD Demand Management • Collaboration from around the organization and the globe • Robust statistical capabilities • Inventory planning (safety stocks, service levels, order points) • More effective new product introduction Strategic Plans QAD Apps Financial Plans Other Apps Sales/Customer Collaboration Forecasting Optimization Rough-Cut Capacity Planning Improves forecasting and inventory planning for Forecasting Managers

42. QAD Supply Visualization • 24x7x365 collaboration via web-portal • Supplier self-service • Supports multiple replenishment options • Interfaces with any ERP system Real-time visibility of demand reduces costs and improves delivery times for Supply Chain Managers

43. SV - Track & Trace • Integrated with QAD TMS • Shipment detail information • Alerts with tolerances for each transit check point • Manage by exception Carriers QAD TMS Suppliers QAD Customer Browser Browser Track & Trace ERP Supply Visualization Complete visibility of in-transit shipments and early notification of delays for Logistics Managers

44. SV 2008 Enhancements Collaborative 2-way Messaging • Issues discussed real time between customer & supplier • Easily identify issue -- message associated with order & line • Immediate notification -- interactive alerts • Broadcast messaging -- alert all suppliers

45. SV 2008 Enhancements ASN Containerization • Supplier shipment entry & ASN creation simplified; accurate labels • Ship container information defaults on ASN • New container information -- weight, cube, etc. • New to ASN: • Kanban lines • Lot/Serial & Kanban ID’s -- auto or manual • Ship labels -- serial numbers auto generated • Shipment & Label information exported for receiving

46. Time ToMarket Time ToCustomer PTC & QAD: A Natural Fit Customers Product development Manufacturing and delivery Supply Chain The best solutions are those that deliver a value greater than the sum of its individual components

47. PTC PLM and QAD ERP Combined Are Your Best Bet • Enable Early Design / Innovation • Manage your completed design data from one point (ECAD, MCAD, Software) • Easy configuration Management • BOM management - create and compare • Best in class Design Collaboration • Merge the Engineering and Manufacturing process better • Manage Relevant design changes to any configuration • Fully Associative Change management • 2 way integration with QAD (long term) • MPM so that we have the value add of managing changes to the Mfg. Process automatically • Committed to providing tools that facilitate the integration to the Manufacturing process • Enable you to manage a Globally distributed design force • CMII Certified Enterprise design Change Process • Architecture built to facilitate Internet base Design Collaboration • Global IP protection allowing access to secured access to need to know • Build on an single database architecture to ensure only one source of truth everywhere

48. Manufacturing Roadmap • Process Manufacturing • Lot Control of: • Formulation, Potency, Alternative UOM • Integrated Work Benches • MSW - Master Scheduling Workbench • PSW - Production Scheduling Workbench • CAC - Component Availability Check "browse" • Repetitive Allocations and Sequencing • Quality Systems • PTC Integration

49. Enterprise Asset Management TMS PIM Finance EAM Service HRIS SFA & CRM Distribution Manufacturing/SC PLM

50. QAD EAM Roadmap EAM v12 .NET UI Enhanced RCM & RCA Support Calibration Maintenance Integrate Process Maps into v12 Production Workbench Integration to MES External Integration via QXtend Dashboard Work order mgt via PDA’s Approve via Mobile Devices Enhanced Reporting Solution Project Controls Customer Funded Mar 09 Sep 09 Mar 10