Direction For the Future Tony Winter – Chief Technology Officer, QAD, & Brandon Gibbs – Technical Account Mgr for Strategic Accounts, Progress Software QAD & Progress

2 The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. Safe Harbor Statement QAD & Progress Direction For the Future

Business Making Progress QAD & Progress Direction For the Future 3

4 30 years of Experience - NASDAQ: PRGS - Headquarters: Bedford, MA - Customer Sites: Over 140,000 - Offices: 90 Worldwide - Revenue: $530M + - Employees: Founded: November 1981 Global Presence -Deployed in 175 countries worldwide Progress Software Snapshot QAD & Progress Direction For the Future

5 Progress community $5B total annual revenue 5 Million users worldwide 1,500 Partners deliver 5,000 unique business applications VAR Business 5-star rating for partner program PSC and its application partners add 600K new users each year Progress Customer & Partner Base QAD & Progress Direction For the Future

6 60% of Fortune 500 manufacturers use Progress technology Progress serves the leaders in many markets -4 out of 5 of the world’s largest in electronics -3 out of 4 of the world’s largest in medical -4 out of 5 of the world’s largest in beverage -2 out of 4 of world's largest in food -16 out of 25 of the world’s largest auto suppliers Over 250 SaaS Providers using Progress technologies today to deploy, manage or integrate over 700 SaaS applications Progress Customer & Partner Base QAD & Progress Direction For the Future

7 Partners for over 27 years Progress and QAD product road maps are very closely aligned QAD continues to take advantage of new Progress technologies Thank you for your loyalty and business! Progress & QAD QAD & Progress Direction For the Future

QAD’s Requirements for a Technology Platform QAD & Progress Direction For the Future 8

Auditing via Enhanced Controls update Performance w/Type II areas Via the Database… Via the Servers… AppSvr is Business Services Layer for entire app Backend database options via DataServers OpenClient used to support.NET UI and QXtend WebSpeed in Customer Self Service (CSS) & Manufacturing Via the Clients… OE Architect for development productivity Via the IDE… 9 QAD & Progress Direction For the Future QAD & Progress Deliver Business Value

Core Business Logic for QAD EE OOABL with QXtend Client Principle Object with Auditing Via the ABL… 37 and counting Via Platform Support… OE Replication used to protect On Demand customers Via Data Management / Replication Tools… ODBC access for Analytics and Service & Support Via SQL Compliance… Interoperates with QXtend Via Sonic Enterprise Service Bus … 10 QAD & Progress Direction For the Future QAD & Progress Deliver Business Value

11 QAD Performance Tests on Real Data QAD & Progress Direction For the Future Query Execution Time (seconds)

QAD & Progress Direction For the Future 12

Continuously anticipate problematic events and re-prioritize the supply chain to optimize product delivery Investigate potentially fraudulent activity while it’s happening and prevent it from spreading Dynamically up-sell based on customer activity, context and location …organizations need to improve their overall situational awareness…Gartner calls this “Operational Responsiveness” … QAD & Progress Direction For the Future The New Imperative: Not What is Happening, But What Will Happen? 13

Continuous Business Process Improvement Immediate Sense-and- Respond Real-time Business Visibility Continuously improve your business’ Operational Responsiveness QAD & Progress Direction For the Future Progress Delivers Operational Responsiveness 14

15 OpenEdge is the leading application platform for simplifying the delivery of responsive business applications in the cloud OpenEdge: Our Vision QAD & Progress Direction For the Future

Agility Process improvement Visibility Business empowerment Easier customization of applications More use cases Reduced cost of development Modernization of existing applications End users’ requirementsDevelopers’ requirements QAD & Progress Direction For the Future The New Requirements of Business Applications 16

The New Business Application Architecture QAD & Progress Direction For the Future To build business process applications, a business process- enabled application development platform is needed. Business Process ApplicationTraditional Application DBMS Application DBMS Application 17

What is a Business Process? QAD & Progress Direction For the Future Metrics & Measurements Workflow Description Business Rules Information People and Systems = Process

QAD & Progress Partnering to Utilize the Progress Savvion BPM for You QAD & Progress Direction For the Future BPA Business Process Analyses Business Analysts BPE Business Process Execution Application Developers BPI Business Process Improvement Business Managers 19

20 QAD Visions Increase Responsiveness and Reduce Costs QAD & Progress Direction For the Future Service & Support Shipping CSR Customers

Operational Responsiveness with OE BPM QAD & Progress Direction For the Future OpenEdge Robust DBMS and business language for automating steps in business processes Savvion BPM Suite Leading BPM suite for defining, executing and monitoring business processes + OpenEdge BPM Enabling the development of business process applications 21

22 QAD & OpenEdge BPM Application Integration Presentation Layer Services Layer Business Layer Data Layer Common Services

23 First to market with business process-enabled application development platform Integration with OpenEdge Built on market-leading Savvion BPM technology Ability to enhance existing OpenEdge Aligns with QAD’s vision of connecting people and process Why OpenEdge BPM & QAD? QAD & Progress Direction For the Future

Out-of-box adapters -Database integration -Web services integration -JMS integration - integration -QAD integration -SAP integration -Documentum integration -Microsoft Office -Progress Actional -Progress Apama -Progress Sonic Adapter framework Existing Systems Can Be Modernized Into Business Process Applications QAD & Progress Direction For the Future 24

Progress is investing heavily into OpenEdge Progress & QAD partnership is as strong as ever Progress’ investments into innovative technologies continue to bring value to QAD and their customers The future is bright! Summary QAD & Progress Direction For the Future 25

26 Metrics Affected QAD & Progress Direction For the Future Benefits Maximize use of existing capital investment, with better response time Eliminate non-value add process steps Improve communication with the entire supply chain Anticipate problems to improve responses Better user adoption

27 Attend General Session - QAD Technology Foundation and Interoperability -Wednesday at 9:00 AM -Speaker: Tony Winter Next Steps QAD & Progress Direction For the Future

28 Tony Winter Brandon Gibbs Questions & Answers QAD & Progress Direction For the Future

© QAD Inc 29