RICHMOND, CA – July 19, 2004 – QRS Corporation (Nasdaq: QRSI) today announced that Federated Department Stores, Inc., one of the nation's leading department store retailers, will participate in an upcoming beta program for QRS Reveal™, a new solution from QRS for transaction lifecycle visibility. Participation in the beta program lets retailers and suppliers test and provide feedback on the application, which is designed to proactively monitor business transactions in order to reduce errors that impact profitability.

Federated has agreed to participate in the beta program based, in part, on the company's long-standing relationship with QRS. Federated uses a number of QRS solutions, including QRS Catalogue™ for data synchronization with its trading partners and QRS Exchange™ for trading community management and EDI business transactions. QRS Reveal works with a retailer or supplier's existing EDI infrastructure, which will allow companies like Federated to implement the solution quickly and cost-effectively. Retailers and suppliers can build on their current EDI investments by leveraging QRS Reveal for improved trading partner communications.

QRS Reveal can improve the way retailers and suppliers manage and monitor trading community transactions. Without transaction lifecycle visibility, many retail companies can only passively track documents that are sent and received. This type of tracking allows companies to identify problems or disruptions – but only after they occur. With customizable business rules and proactive alerting capabilities, QRS Reveal allows retailers and suppliers to identify impending transaction failures before they happen. This advance notification and visibility can help companies improve their business by reducing stockouts and preventing late and missed deliveries.

"Federated believes that the transaction lifecycle visibility offered by QRS Reveal will provide us with intelligence and insight that will translate into both decreased costs and increased revenue for our company and our suppliers," said Pam Sweeney, Senior Vice President, Federated Logistics & Operations. "QRS' deep retail industry expertise and its track record of delivering superior collaborative solutions to the market make it an ideal partner."

QRS Reveal features will include:

• Comprehensive document tracking – comprehensive view of inter-document tracking history for a range of retail business users including buyers, salespeople and supply chain managers
• Configurable business rules – multiple warning and violation conditions for different trading partners' requirements
• Alerts and notifications – delivered to users within the retail organization or along its supply chain
• Expansive reporting capabilities – reporting and ad hoc querying on historical information to identify trading partner performance and resolve trading disputes

"We are very pleased to have Federated participate in the QRS Reveal beta program," said Liz Fetter, QRS President and Chief Executive Officer. "QRS sees transaction lifecycle visibility as the next critical step in improving collaboration between retail trading partners, and we will use input from valued customers such as Federated to deliver a valuable, strategic product to the market."

The QRS Reveal beta program is scheduled to begin in the third quarter with general availability occurring later in 2004.

About QRS Reveal™

QRS Reveal™ is a powerful solution hosted by QRS that provides transaction lifecycle visibility. Its early warning capabilities let retailers and suppliers proactively monitor the order fulfillment process. Unlike traditional solutions that provide after-the-fact information, QRS Reveal can alert business managers about costly disruptions before their effects are realized. QRS Reveal is accessed via a user-friendly web-based interface that provides both high-level and detailed views of transactions.

About Federated Department Stores, Inc.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $15.2 billion. Federated operates more than 450 stores in 34 states, Guam and Puerto Rico under the names of Macy's, Bloomingdale's, Bon-Macy's, Burdines-Macy's, Goldsmith's-Macy's, Lazarus-Macy's and Rich's-Macy's. The company also operates macys.com and Bloomingdale's By Mail.

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 9,800* customers expand into new markets and channels, improve operational efficiency and differentiate their brand.

*Based on total, unique QRS corporate customers that purchased or licensed QRS products and services between July 1, 2003 and June 30, 2004.