RICHMOND, CA – May 05, 2004 – QRS Corporation (Nasdaq: QRSI) announced today the results of its first quarter ended March 31, 2004.

The Company reported first quarter revenues of $30.5 million, compared to $30.7 million for the fourth quarter 2003 and $30.8 million for the first quarter 2003. The Company also reported first quarter net income of $1.3 million, or 8 cents per share, diluted. This result compares to a net loss of $5.9 million, or 37 cents per share, for the fourth quarter 2003, and to net income of $0.8 million, or 5 cents per share, diluted, for the first quarter 2003. First quarter net income included a benefit of $0.6 million due to a favorable legal settlement related to a deferred acquisition payment.

"We're pleased with our first quarter results and our continuing profitability," said Liz Fetter, President and CEO of QRS. "As we transition to new, long-term growth drivers for the Company, we are committed to bringing new collaborative commerce solutions to market. So far this year, we have brought two new solutions to market – QRS IMPACT™ and QRS QuickSync™."

The Company reported a first quarter gross margin of 49%, which compares to 50% in the fourth quarter 2003 and 49% in the first quarter 2003. First quarter total operating expenses were $13.8 million, compared to $21.3 million for the fourth quarter 2003 and $14.4 million for the first quarter 2003.

Cash and marketable securities at the end of the first quarter were $34.0 million, compared to $38.1 million at the end of the fourth quarter 2003. As previously announced, $3.6 million of cash was placed in escrow during the first quarter to fund various future lease payments and was excluded from the Company's cash balances.

Recent QRS accomplishments include:

• Deepening Relationships in General Merchandise and Apparel (GMA). In the first quarter, QRS signed contracts for its collaborative commerce solutions with many leading general merchandise and apparel (GMA) companies including Giorgio Armani, Perry Ellis and Marshall Field's, a new trading community hub for QRS.
• Expanding to New Retail Segments. QRS continued to win business with companies in retail segments adjacent to North American GMA. The Company's target retail segments outside of GMA include the consumer packaged goods, hardlines, do-it-yourself, sporting goods, consumer electronics and health and beauty segments. In the first quarter, QRS signed contracts with leading companies in these segments, including: Baldwin Hardware, Godiva Chocolate and Met-Rx.
• Enhancing the Product Portfolio. In the first quarter, QRS introduced QRS IMPACT for product information management (PIM). QRS recently released QRS QuickSync, an easy-to-implement solution focused on data synchronization. As announced yesterday, Gold Toe Brands, Inc., a leading, privately held hosiery manufacturer, signed a license to implement QRS QuickSync. QRS also achieved full UCCnet™ certification for QRS Catalogue™ Release 4.0 during the first quarter. Development for the Company's new transaction management solutions continues as scheduled.

The Company currently expects to maintain profitability in the second quarter and for the full year 2004, while second quarter revenue will be down sequentially, due primarily to seasonality and long-term business trends in Trading Community Management.

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 May 5, 2004. The conference call can be accessed via telephone at 877.580.9103 (toll-free) and 610.794.9303 (international) with passcode QRS and leader name Liz Fetter. The call will be webcast and can be accessed at www.qrs.com. Telephone replay will be available beginning May 5, 2004, after 4:00 p.m. PT (7:00 p.m. ET) at 888.566.0139 (toll-free) and 402.998.0863 (international). The replay of the webcast will also be available at www.qrs.com.

About QRS

QRS (Nasdaq: QRSI) is a technology company that serves the global retail trading community. We offer collaborative commerce solutions that drive a new standard for global brand execution. At QRS, we manage the flow of critical commerce information and leverage our retail technology expertise to address fundamental industry challenges such as global data synchronization, mandate compliance, transaction management and global trade management. QRS solutions help over 10,000* customers expand into new markets and channels, improve operational efficiency and differentiate their brand. 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 2003.