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One of the World’s Largest Suppliers of Shocks and Struts Selects QAD On Demand Global Cloud ERP

High-Volume Manufacturer KYB Japan Chooses QAD’s Proven Cloud ERP for its Simplicity, Flexibility and Predictable Cost Structure

SANTA BARBARA, Calif. — October 14, 2013 — QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise software and services for global manufacturers, today announced that KYB Japan has selected QAD On Demand, QAD’s cloud enterprise resource planning (ERP) solution. Global manufacturers are increasingly turning to QAD On Demand as their trusted cloud ERP solution for its reliability, flexible deployment options, global capabilities and predicable cost structure.

QAD On Demand – Built For High-Volume Manufacturing

KYB, one of the world’s largest suppliers of shocks and struts to vehicle manufacturers, will initially transition to QAD On Demand Automotive Edition in France and The United Arab Emirates. As a supplier to major automakers including GM, Honda, Mazda, Mitsubishi, Nissan, Infiniti, Chrysler, Subaru, Toyota, Lexus and Volkswagen, KYB recognized the benefits of selecting the proven QAD cloud ERP model to support its business strategy. KYB’s global enterprise consists of 32 facilities in 21 countries and 29 manufacturing plants of which 17 are in Asia, five in North America, one in Brazil and six in Europe. The company needed a better way to support operations — and reduce costs over the next two years. QAD’s cloud ERP offers KYB, a company with the largest production volume of any automotive shock absorber supplier, the opportunity to reduce costs, improve quality and delivery performance.

QAD On Demand allows KYB to reduce its operating costs and provides a highly robust and available solution. QAD’s global capabilities with built-in support for local languages, currencies, business practices and legal requirements, enable KYB to align their global operations to strategic goals.

QAD — Proven Automotive ERP Expertise World-Class Suppliers Count On

“QAD has built a trusted relationship with KYB over the years as our global ERP solution provider as well as provided automotive manufacturing ERP expertise,” said Takafumi Shoji, managing executive officer and GM, Information Technology Administration at KYB Corporation. “The move to QAD On Demand Automotive Edition offers KYB the benefits of a proven cloud ERP solution, and allows us to balance demand and supply while reducing inventory, meeting stringent quality standards and demanding delivery schedules. QAD cloud ERP offers us greater simplicity, flexibility and a predictable cost structure that supports our business strategy.”

QAD Helps Companies Migrate to the Cloud

QAD works closely with many of its global manufacturing customers to build a clear plan to recognize the benefits of moving to cloud ERP. QAD offers flexible deployment options that allow customers, like KYB, to blend deployment of ERP in the public cloud and on premise. QAD’s architecture supports deployment portability and deployment independence allowing manufacturers to have a combination of QAD On Premise and QAD On Demand at different sites, simultaneously. Customers benefit from the same functionality, business processes, internationalizations and user experience across QAD Enterprise Applications regardless of the deployment model.

“World-class manufacturers like KYB are increasingly turning to QAD to migrate their ERP to the cloud,” said Charlie Eggerding, vice president of QAD On Demand. “As a proven cloud ERP provider since 2007, manufacturers know they can rely on QAD’s solutions and services to perform at their best and work towards becoming more Effective Enterprises.”

For more information, please visit:

About KYB

KYB is a $3 billion global hydraulics manufacturer with over 12,300 employees and sells its products in over 100 countries. The company is a world leading supplier of shocks and struts to vehicle manufacturers and has a full range of domestic and import shocks and struts for the aftermarket. For more information, visit

About QAD

QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), is a leading provider of enterprise software and services designed for global manufacturing companies. For more than 30 years, QAD has provided global manufacturing companies with an enterprise resource planning (ERP) system that supports operational requirements; including financials, manufacturing, demand and supply chain planning, customer management, business intelligence and business process management. QAD offers flexible deployment options like QAD On Premise software and QAD On Demand software-as-a-service. Customers can operate in a blended environment where some users can be deployed On Premise and some users deployed via On Demand while offering the same end-user experience. With QAD, customers and partners in the automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries can better align daily operations with their strategic goals to meet their vision of becoming more Effective Enterprises.

For more information about QAD, telephone +1 805-566-6000, visit

“QAD” is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

For additional information, contact:

Ashley DeVan
Sr. Director of Marketing Communications
QAD Inc.
+1 805 566 6126
Heidi Wieland
Media Relations
QAD Inc.
+1 805 565 2452

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 2013 ended January 31, 2013, 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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