RICHMOND, Calif. – July 17, 2003 – QRS Corporation (Nasdaq: QRSI) today announced that the Navy Exchange Service Command (NEXCOM) has extended its contract with QRS for five years, making QRS its provider of networking services and product information management solutions. With this agreement, NEXCOM will continue to use QRS Catalogue™ to centralize its product data and help automate and optimize internal business processes, and will use QRS Exchange™ to exchange business documents with its more than 4,000 trading partners.

QRS Catalogue allows manufacturers and suppliers to synchronize current, accurate product information on more than 90 million items with retailers in North America and Europe. QRS Catalogue will help NEXCOM increase UPC penetration, which will enhance supplier partnerships by improving order accuracy and performance tracking to reduce overall operating expenses and improve staff productivity. As a result, NEXCOM will have significant savings opportunities by rolling out QRS Catalogue to its entire trading community.

The QRS Exchange solution suite helps customers manage retail supply chain communication and optimize business operations. Whether through the Internet, or a value-added network (VAN), or as a managed service, QRS Exchange supports trading communities of any size, offering customers economies of scale and a rapid return on investment with easier network setup and lower maintenance costs. Over the past three years, NEXCOM has used QRS Exchange and access services to connect to over 1,800 suppliers and, as a result, has reduced expenses with electronic vs. manual data interchange.

With QRS as its provider of EDI messaging services, NEXCOM will build on that success, expanding electronic communication to more of its 4,000 trading partners, which include general merchandise and apparel, hardline, health and beauty aid, and grocery suppliers. With its ability to transmit information in any format, including Banking Administration Industry standards, QRS Exchange is able to support NEXCOM's most recent initiative to enable electronic communication with its financial trading community, in addition to its traditional merchandise suppliers.

"We needed a committed partner that supports the intricacies of our supplier relationships, the urgency of getting product to our customers, and our expansion strategy, all while helping us improve internal process efficiencies and improving our bottom line," said Eileen Cook, EDI Coordinator, merchandise information systems group at NEXCOM. "Our successful track record with QRS made the company the best choice to be our catalogue and messaging services provider."

"It is our goal to provide collaborative commerce solutions that both retailers and vendors can benefit from today and in the future," said Renee d'Ouville, Vice President, Product Strategy of QRS Corporation. "We are proud to be an integral part of NEXCOM's strategy to bring the benefits of automated transactions to its diverse global trading community."

About The Navy Exchange Service Command

The Navy Exchange Service Command, or NEXCOM, is headquarters for the worldwide Navy Exchange System.  Its mission is to provide authorized customers quality goods and services at a savings and to support quality of life programs for active duty military, retirees, reservists, and their families. Navy Exchanges are run as non-appropriated fund activities, that is they are self-sufficient and do not receive appropriated or taxpayer dollars. NEXCOM is responsible for the oversight of 109 Navy Exchanges worldwide, 41 Navy Lodges, 187 Ships Stores, and the Uniform Program Management Office. These four independently functioning programs of the Navy Exchange System generated $1.9 billion in sales in 2002 and gave $56.9 million to morale, welfare and recreation (MWR) programs. Since 1946, nearly $2.2 billion has been given to MWR to enhance Sailor quality of life.

About QRS

QRS (Nasdaq: QRSI) is a leading provider of collaborative commerce solutions for the global retail trading community. We enable companies to communicate electronically with their global trading partners; conduct cross-company transactions; synchronize and manage product data; collaboratively source, merchandise and import goods; and automatically detect and resolve supply chain issues. More than 8,000* retailers, brand marketers, manufacturers, suppliers, wholesalers and distributors from a variety of retail segments – including Federated Department Stores Inc., Groupe Clarins USA, Jones Apparel Group Inc., The Kroger Company, Sears, Roebuck and Co., and Selfridges plc – use QRS solutions to significantly improve their overall business performance. Learn more about QRS at www.qrs.com.