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Sauermann Begins QAD On Demand Global Rollout in France

Industrial Pump Manufacturer to Deploy QAD SaaS ERP Solution across Nine Sites

SANTA BARBARA, Calif.—December 08, 2011—QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), a leading provider of enterprise software and services for global manufacturing companies, announced today that Sauermann Group, a global manufacturer of pumps, will transition to QAD On Demand to support its global business, starting with its plant in France.

Sauermann Group designs and manufactures products and systems that detect, evacuate, and regulate condensate water in heating, air conditioning, and refrigeration systems.

Currently, Sauermann has no central enterprise resource planning (ERP) solution to consolidate its operations. Sauermann turned to QAD On Demand to help rapidly deploy one system across its businesses, globally.

Sauermann has begun its implementation at Sauermann Industries S.A., located in Chevry Cossigny, France, where it will use QAD On Demand to standardize its financial operations. Sauermann will then continue its rollout using QAD On Demand to standardize its customer relationship management, sales, and accounting operations in Italy, Germany, and the United Kingdom. Sauermann will complete the QAD solution rollout in China and the United States.

QAD On Demand provides Sauermann full-strength ERP in a Software as a Service (SaaS) model. With QAD On Demand, Sauermann can focus on its business needs, relieving its staff from the system implementation and day-to-day maintenance responsibilities, while guaranteeing users 99.5% system availability.

“We selected QAD On Demand because it is the best solution available to meet our needs," explained Serge Bohyn, chief executive officer for Sauermann. "QAD On Demand will adapt with our organization as we grow, and complements our IT resources. QAD On Demand is an ideal solution for our business size, and it’s the right platform to meet our customers' and suppliers' needs."

To learn more about QAD On Demand, visit www.qad.com/ondemand.

About Sauermann Group

The Sauermann Group employs nearly 100 people throughout the world and, in 2007, had a consolidated turnover of €21.5 million. For more than 30 years, it has been designing, manufacturing, and selling condensate removal pumps intended for air conditioning, heating, and refrigeration systems. For more information, visit http://www.sauermannpumps.com.

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 curren 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 prop tion 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 2011 ended January 31, 2011, 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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