capital raising

10 million @ 3.4 cents! Hmmm ...

At least it was done to a joint venture partner, as it shows IMO long-term confidence in the business, as apposed to a placement to anonymous "sophisticated" investors!

11 August 2004

The Manager
Australian Stock Exchange Limited (“ASX”) Company
Company Announcements Office

No. of pages: 1

Placement to Strategic Business Partner

The Directors of QAD wish to advise that an agreement has been reached for a placement of 10,000,000 shares to raise $340,000. The placement is being made to the Company’s strategic Enhanced Telephony Services (ETS) venture partner in the UK. The Directors are encouraged by the investment as it is seen as confirmation of the potential of the business being developed.

The 10,000,000 shares are to be placed at $0.034 per share to raise $340,000 for general working capital.

Yours faithfully

Phillip MacLeod Company Secretary