QAD Global Services Helps Atlas Copco Drilling Solutions Adopt Lean Principles and Improve Business Performance

QAD Inc. (NASDAQ:QADI), a leading provider of enterprise applications and services for global manufacturers, has enabled Atlas Copco Drilling Solutions LLC, Garland, Texas, to apply lean manufacturing principles across its supply chain and increase the efficiency of overall business functions within the company using QAD Enterprise Applications. Atlas Copco Drilling Solutions LLC, a company within the Construction and Mining Technique division of the Atlas Copco Group (based in Sweden; www.atlascopco.com) manufactures and markets a wide range of drilling equipment. In 2005, Atlas Copco Drilling Solutions made a strategic decision to upgrade from QAD MFG/PRO 8.5 to QAD MFG/PRO eB2.1 with a single domain architecture, in order to reduce hardware costs and software customizations and take advantage of new software capabilities. This upgrade was facilitated by QAD Global Services who worked closely with Atlas Copco Drilling Solutions to plan and perform the upgrade with minimal disruption to their business operations. In July of 2004, the Atlas Copco Group acquired Ingersoll-Rand Company Ltd.’s Drilling Solutions business to form Atlas Copco Drilling Solutions. At the time of the acquisition, the company was running a heavily customized version of QAD MFG/PRO 8.5. With the help of QAD Global Services, Atlas Copco Drilling Solutions decided to upgrade the entire system and remove much of the system customization. Atlas Copco Drilling Solutions was also able to adopt lean manufacturing principles throughout its supply chain, leading to a decrease in operational costs and a streamlining of its manufacturing operations. "We knew that we needed to upgrade our system, but the idea of jumping several versions at once and implementing across such a vast network of users was overwhelming. We relied heavily on QAD Global Services to help us develop a project plan that was achievable and would help us optimize our business processes,” said Mark van Tassell, IT/IS application services manager, Atlas Copco Drilling Solutions. "We were able to eliminate nearly 300 customizations that were running on the old system as well as move up several versions in one weekend thanks to the in-depth product knowledge and industry expertise of QAD Global Services.” QAD Global Services employed their Q-Advantage Methodology, and worked closely with the Atlas Copco Drilling Solutions team to help design, develop, test and deploy the system based on Atlas Copco Drilling Solutions’ business and technical requirements. Key activities during the project lifecycle included assessment of the current use of QAD MFG/PRO 8.5, a system audit to review data accuracy, system performance tests, analysis of existing customer code and modifications, evaluation of integrated applications being used, assessment of training requirements, quality assurance, hardware analysis, infrastructure analysis and a detailed project schedule. With the upgrade plan in place and executing several test cycles, Atlas Copco Drilling Solutions was migrated to QAD MFG/PRO eB2.1, in one conversion effort. Key processes such as order-to-cash and procure-to-pay were improved through the upgrade process, allowing Atlas Copco Drilling Solutions to take full advantage of the rich functionality inherent in QAD Enterprise Applications. "QAD Global Services was excited for the opportunity to help Atlas Copco Drilling Solutions upgrade their current QAD solution. By developing a plan that would take the project from start to finish, QAD Global Services was able to reduce customizations, decrease their operational costs and deliver a seamless upgrade,” said Duane Kotsen, vice president, QAD Global Services. "The team executed a direct upgrade path from QAD MFG/PRO 8.5 to QAD MFG/PRO eB2.1 over a weekend -- with no issues. QAD consultants delivered training and developed work aids as well to help Atlas Copco Drilling Solutions take full advantage of their QAD investment.” QAD Global Services provides manufacturers with an Upgrade Assessment Service Offering to help customers fully evaluate the benefits of upgrading to newer, more powerful versions of QAD Enterprise Applications. The Upgrade Assessment Service Offering utilizes QAD consultants who will provide a company with an expert view of what it will take to upgrade QAD Enterprise Applications on time and on budget. They provide a realistic cost estimate and schedule along with a business case and estimated return on investment analysis, offering companies the confidence that is needed to gain buy-in and budget approval from key stakeholders. For more information about QAD Global Services and the Upgrade Assessment Service Offering please visit www.qad.com or email QAD Global Services at ljl@qad.com. About Atlas Copco Drilling Solutions Atlas Copco Drilling Solutions is a world leading provider of drilling equipment. Atlas Copco Drilling Solutions manufactures and markets a wide range of drilling equipment used in surface mining, exploration, construction, water well, aggregate, and shallow oil and gas applications around the world. Through state-of-the art technology and customer focus, Atlas Copco Drilling Solutions strives to provide the ideal combination of efficiency, productivity, service, support, and value in all of their products. About QAD QAD is a leading provider of enterprise applications for global manufacturing companies. 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. Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and life science products use QAD applications at approximately 5,800 licensed sites in more than 90 countries and in as many as 27 languages. For more information about QAD, telephone +1-805-684-6614, 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 QAD Investors: This press release contains certain forward-looking statements made under the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. 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 2007 ended January 31, 2007.