RICHMOND, Calif. – April 30, 2003 – QRS Corporation (Nasdaq: QRSI) announced today its results for the first quarter ended March 31, 2003.

The Company reported the third consecutive quarter of profitability with first quarter net income of $0.8 million, or $0.05 per share, diluted, compared to net income of $1.0 million, or $0.06 per share, diluted, for the fourth quarter 2002 and to a net loss of $3.2 million, or $0.20 per share, for the first quarter 2002.

"We are pleased to deliver consistently profitable results as we near the completion of our turnaround and begin to execute on our plans for future growth," said Liz Fetter, President and CEO of QRS. "At the same time, given the tough external environment, we are exercising strong operational discipline and managing our costs in line with our revenue stream, building our future on a solid foundation."

The Company reported revenues for the first quarter of $30.8 million, reflecting the weak economy and competitive pressures. First quarter revenues compared to $32.0 million for the fourth quarter 2002 and $35.5 million for the first quarter 2002. The Company currently expects second quarter revenues to stabilize around first quarter levels with sequential quarterly revenue growth occurring in the second half of 2003. Gross margins for the first quarter were 49%, compared to 49% for the fourth quarter 2002 and 45% for the first quarter 2002. The Company continues to expect overall gross margins, as a percentage of revenues, in the mid- to upper-forties this year.

The Company reduced operating expenses for the quarter to $14.4 million, compared to $14.9 million for the fourth quarter 2002 and $20.3 million for the first quarter 2002. The Company will continue to explore opportunities to drive operating expense improvements in 2003. Days sales outstanding remained low at 43 days at the end of the first quarter, compared to 42 days at the end of the fourth quarter 2002 and 49 days at the end of the first quarter 2002. Cash and marketable securities were $35.6 million at the end of the quarter, compared to $39.6 million at the end of the fourth quarter 2002, reflecting investments in technology development and several planned payments. The Company continues to expect total expenditures related to its development of a collaborative commerce platform and further value-added applications to be approximately $8-13 million in 2003, which the Company expects to record as additional capitalized service and product development costs.

Revenues from Software Applications, which include both enterprise and hosted applications, were $8.1 million for the first quarter, compared to $8.1 million for the fourth quarter 2002 and $9.5 million for the first quarter 2002. Gross margins for Software Applications were 72%, compared to 73% for the fourth quarter 2002 and 67% for the first quarter 2002.

Trading Community Management revenues were $16.7 million for the first quarter, compared to $17.6 million for the fourth quarter 2002 and $19.1 million for the first quarter 2002. Gross margins for Trading Community Management were 52%, compared to 52% for the fourth quarter 2002 and 48% for the first quarter 2002.

Global Services revenues were $6.0 million for the first quarter, compared to $6.3 million for the fourth quarter 2002 and $6.9 million for the first quarter 2002.  Gross margins for Global Services were 11%, compared to 12% for the fourth quarter 2002 and 6% for the first quarter 2002.

"In addition to aggressively managing our costs," continued Fetter, "we are strengthening our sales organization with top talent, introducing new applications while enhancing our existing product offering, and actively evaluating further opportunities for organic and strategic growth."

QRS accomplishments in 2003 to date include:

• Deepening Our Relationships Within General Merchandise and Apparel (GMA). QRS reported continued strength in the Company's traditional base of GMA customers, signing contracts in the first quarter of 2003 with companies including adidas, Retail Brand Alliance, Stage Stores, Lands' End, Marchon Eyewear, Mikasa, Naval Exchange Service Command (NEXCOM) and Tommy Hilfiger.
• Expanding to New Retail Segments. Woolworth Germany signed an agreement with QRS in the second quarter of 2003 to license QRS Sourcing™, a leading enterprise software application for managing and tracking products from concept creation to final delivery. The Company also won business with companies in retail segments adjacent to GMA, including the consumer packaged goods, grocery, sporting goods, and health and beauty segments.
• Broadening Product Offering. The Company introduced an exception management application, QRS Insight, which gives customers greater visibility in ordering, planning and payment processes. The Company also completed enhancement upgrades on QRS Sourcing™ and QRS Web Forms™ to offer increased functionality and value.

Conference Call Information

In conjunction with the earnings release, the Company will hold a conference call at 2:00 p.m. PT (5:00 p.m. ET) on April 30, 2003. The conference call can be accessed via telephone at 877.580.9103 (toll-free) and 610.794.9303 (international) with passcode QRS. The call will also be webcast and can be accessed at www.qrs.com. Telephone replay will be available beginning April 30, 2003, after 4:00 p.m. PT (7:00 p.m. ET) at 800.947.6766 (toll-free) and 402.220.4621 (international). The replay of the webcast will also be available at www.qrs.com.

About QRS

With headquarters in Richmond, California, QRS (Nasdaq: QRSI) has offered innovative solutions that automate the way companies connect, transact, collaborate and differentiate since 1988.

QRS is a market leader in collaborative commerce software and services that help the retail industry bring products to market quickly and profitably. With a comprehensive suite of commerce solutions for the global trading community, only QRS combines the benefits of electronic communication with the retail industry's leading source of product information for accurate partner transactions between companies of any size or technology infrastructure. QRS allows companies to see and manage processes across the supply chain so that problems can be detected and resolved, and offers services that provide insight to the store floor so that companies can enhance the customer experience and improve store operations. More than 8,000* customers from over 20 retail segments – including Sears, Roebuck and Co., The Kroger Company, Selfridges plc and Jones Apparel Group – use QRS® to meet customer needs, compress cycle times, reduce costs and improve sales margins. Learn more about QRS at www.qrs.com.

* Based on total, unique QRS corporate customers that purchased or licensed QRS products and services between January and December 2002.