RICHMOND, CA – July 20, 2004 – QRS Corporation (Nasdaq: QRSI) announced today financial results for its second quarter ended June 30, 2004.

The Company reported second quarter revenues of $29.2 million, compared to $30.5 million for the first quarter 2004 and $30.6 million for the second quarter 2003. The Company also reported second quarter net income of $1.5 million, or 9 cents per share, diluted. This result compares to net income of $1.3 million, or 8 cents per share, for the first quarter 2004, and to net income of $1.8 million, or 12 cents per share, diluted, for the second quarter 2003.

"We are pleased with our profitable performance during the quarter, driven by continued cost management in our core business. With the introduction of QRS IMPACT™ and QRS QuickSync™ in the first half of 2004, we are executing on our plan to bring new collaborative solutions to market," said Liz Fetter, President and CEO of QRS.

The Company reported a second quarter gross margin of 49%, which compares to 49% in the first quarter 2004 and 50% in the second quarter 2003. Second quarter total operating expenses were $12.9 million, compared to $13.8 million for the first quarter 2004 and $13.4 million for the second quarter 2003.

Cash and marketable securities at the end of the second quarter were $33.2 million, compared to $34 million at the end of the first quarter 2004.

QRS highlights from the second quarter include:

• QRS signed contracts for solutions in its traditional business - which includes QRS Catalogue™, QRS Retail Intelligence ServicesSM and the Company's Trading Community Management (TCM) solutions – with companies including Boscov's, Columbia Sportswear, Dooney & Bourke, KitchenAid and King's Supermarket.
• For the Company's new solutions, York Fitness Worldwide selected QRS IMPACT and Gold Toe Hosiery chose QRS QuickSync to more effectively manage and centralize product information. In addition, several major retailers will participate in a beta program for QRS Reveal™, the Company's newest solution for transaction lifecycle visibility.
• QRS was recently named a "Top 100 IT Supplier" by the UK publication Retail Week and a "Top 100 Logistics IT Provider" by Inbound Logistics Magazine.
• On June 17, 2004, QRS and JDA Software Group Inc. announced they had signed a definitive agreement for JDA to acquire QRS. Based on the 12-month period ending March 31, 2004, the combined revenues of the two companies was in excess of $340 million.

QRS currently expects to be profitable for the remainder of 2004. Third quarter 2004 revenues are expected to be in line with second quarter revenues.

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 July 20, 2004. The conference call can be accessed via telephone at 877.580.9103 (toll-free) 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 July 20, 2004, after 4:00 p.m. PT (7:00 p.m. ET) at 800.294.9508. 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 approximately 9,800* 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 July 1, 2003 and June 30, 2004.