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Press Release

Jacada Reports Financial Results for the 2004 Fourth Quarter and Year End

ATLANTA, February 3, 2005 – Jacada Ltd. (Nasdaq: JCDA), a leader in software solutions that accelerate business improvement, today reported results for the 2004 fourth quarter and year.

Total revenues for the 2004 fourth quarter were $5.0 million, compared to $4.9 million in the 2004 third quarter and $5.1 million in the fourth quarter of 2003. Software and products revenues were $1.8 million in the 2004 fourth quarter, compared to $1.4 million in the 2004 third quarter and $1.8 million in the fourth quarter of 2003. Service and maintenance revenues were $3.2 million in the 2004 fourth quarter, compared to $3.5 million in the 2004 third quarter and $3.3 million in the fourth quarter of 2003.

Gross profit for the 2004 fourth quarter was $3.7 million, or 74% of total revenues, compared to $3.6 million, or 74% of total revenues, in the 2004 third quarter. Operating loss for the 2004 fourth quarter was $1.4 million, compared to $1.2 million in the 2004 third quarter. Net loss for the 2004 fourth quarter was $1.1 million, or $0.06 per share, compared to a net loss of $1.1 million, or $0.06 per share, in the 2004 third quarter. In the fourth quarter of 2003, Jacada reported gross profit of $4.0 million, or 79% of total revenues, an operating loss of $0.8 million, and a net loss of $0.6 million, or $0.03 per share.

For the year ended December 31, 2004, Jacada reported a net loss of $5.6 million, or $0.29 per share, on revenues of $19.8 million, compared to a net loss of $2.1 million, or $0.11 per share, on revenues of $20.6 million in 2003. Gross profit for 2004 was $14.7 million, or 74% of revenues, compared to $16.2 million, or 79% of revenues, in 2003. Software license revenues were $5.8 million in 2004, compared to $8.4 million in 2003. Service and maintenance revenues were $14.0 million in 2004, compared to $12.2 million in 2003.

At the end of the 2004 fourth quarter, Jacada's cash and investments totaled $37.6 million, compared to $38.0 million at the end of the 2004 third quarter and $41.8 million at the end of the 2003 fourth quarter. "The decrease in cash, after several years of stabilization, is due to the launch of the Jacada Fusion product along with its associated costs," said Gideon Hollander, CEO of Jacada. "We are monitoring this decline carefully."

"We continue to be encouraged by the momentum Jacada Fusion is gaining," said Gideon Hollander, CEO of Jacada. "During the fourth quarter, we successfully implemented Jacada Fusion in several contact centers."

"One of the world’s largest telecommunications providers has implemented Jacada Fusion to help streamline the customer retention process in one of their contact centers," said Hollander. "We were very pleased that their early results using Jacada Fusion indicated as much as a 50% reduction in call time. With the success of this project, we are encouraged by the potential for follow-on revenues at this very strategic account."

Also in the fourth quarter, Jacada expanded an agreement with West Corporation, one of the largest providers of outsourced contact centers and communication solutions. West is using Jacada Fusion to simplify the way its agents access and manage the data housed in its clients' systems. According to Hollander, West has completed two Jacada Fusion projects and recently started a third.

Jacada Fusion solves a significant productivity and efficiency problem for contact centers, where employees are faced with learning and using multiple, diverse business applications to complete even the simplest task. This complexity results in longer call handling times, expensive training programs, higher employee turnover, and ultimately poor customer satisfaction. Jacada Fusion addresses this dilemma by providing a rapid, non-invasive approach for 'fusing' all the applications at the desktop to deliver a new, simplified process and user interaction.

"We believe contact centers are an excellent market for Jacada Fusion, and we are excited about the interest we are generating there," said Hollander. "As our product mix evolves, we anticipate that sales revenue from Jacada Fusion will gain momentum in 2005, while sales revenue from our traditional products will continue to decline as anticipated. Our challenge will be to minimize the gap between these two trends."

Jacada will hold a teleconference at 10:30 a.m. Eastern time today. To participate in the teleconference, please call toll-free 1-800-230-1951, or 612-332-0802 for international callers, approximately 10 minutes prior to the start time. The teleconference will also be available via Webcast at www.jacada.com (under "Investors") or www.fulldisclosure.com.

A telephonic playback of the teleconference will be available for 48 hours beginning at 2 p.m. ET on February 3. To access the replay, dial toll-free 800-475-6701, or for international callers dial 320-365-3844, and provide Access Code 765663.

About Jacada 

Jacada solutions help customers rapidly simplify and improve high-value business processes while eliminating the traditional long and expensive systems replacement projects.

Jacada Fusion is an award-winning Agent Productivity Solution containing patented technology that enables organizations to reduce customer churn as well as increase revenues by providing more time for up-sell and cross-sell activities. Jacada Fusion delivers a simplified interaction to dramatically improve the efficiency of the agent and the experience of the customer. By significantly reducing call handle times and training costs, Jacada Fusion delivers hard ROI, with payback achieved in months. Jacada solutions are deployed in over 100 contact centers to over 100,000 customer service representatives (agents) worldwide, and to millions of users through self-service applications designed to off-load contact center activity.

Jacada has over 1200 customers worldwide including major Fortune 1000 corporations and government organizations such as AAA Mid-Atlantic, AIT Worldwide Logistics, Bank of America, Caterpillar, Delta Air Lines, The Hartford, Lillian Vernon, the U.S. Navy, Porsche Cars North America, Prudential, Raytheon, and the US Department of Interior. Founded in 1990, Jacada operates globally with offices in Atlanta, Georgia; Herzliya, Israel; and London, England. Jacada can be reached at www.jacada.com or at 1-800-773-9574.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future financial results and plans for future business development activities, and are prospective. These statements include all statements that are not statements of historical fact and consists of those regarding intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations; and (iii) the Company’s growth strategy and operating strategy (including the development of its products and services). The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of the future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the performance and continued acceptance of our products, general economic conditions and other Risk Factors specifically identified in our reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made. The Company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. For a more complete discussion of risk factors, please see the Company's Form 20-F and other Statements filed with the Securities and Exchange Commission.

Jacada is a trademark of Jacada Ltd. All other brands or product names are trademarks of their respective owners.

JACADA LTD. CONSOLIDATED BALANCE SHEETS U.S. Dollars in thousands
	December 31
	2004	2003

		ASSETS
		CURRENT ASSETS:
		Cash and cash equivalents	$	3,552	$	9,845
		Marketable securities		19,573		6,638
		Trade receivables (net of allowance      for doubtful accounts of $220 and $234     at December 31, 2004 and 2003,     respectively)		2,472		2,759
		Other current assets		791		622
		Total current assets		26,388		19,864
		LONG-TERM INVESTMENTS:
		Marketable securities		14,488		25,310
		Severance pay fund		969		758
		Total long-term investments		15,457		26,068
		PROPERTY AND EQUIPMENT, NET		1,326		1,874
		OTHER ASSETS, NET:    Other intangibles, net		1,429		951
		Goodwill		4,630		4,630
		Total other assets, net		6,059		5,581
			$	49,230	$	53,387

---

JACADA LTD. CONSOLIDATED BALANCE SHEETS U.S. Dollars in thousands, except for share and per share data
	December 31,
	2004	2003

		LIABILITIES AND SHAREHOLDERS' EQUITY
		CURRENT LIABILITIES:
		Trade payables	$	1,024	$	515
		Deferred revenues		3,822		3,348
		Accrued expenses and other liabilities		3,816		3,776
		Total current liabilities		8,662		7,639
		LONG-TERM LIABILITIES:
		Accrued severance pay		1,479		1,189
		Accrued expenses		-		55
		Total long-term liabilities		1,479		1,244
		SHAREHOLDERS' EQUITY:
		Share capital:
		Ordinary shares of NIS 0.01 par value:
		Authorized: 30,000,000 shares as of        December 31, 2004 and 2003;       Issued and outstanding: 19,326,010       and 19,033,778 shares as of December 31,       2004 and 2003, respectively		56		55
		Additional paid-in capital		69,785		69,277
		Accumulated other comprehensive income    (loss)		(200)		111
		Accumulated deficit		(30,552)		(24,939)
		Total shareholders' equity		39,089		44,504
			$	49,230	$	53,387

---

JACADA LTD. CONSOLIDATED STATEMENTS OF OPERATIONS U.S. Dollars in thousands, except for share data

	Three months ended December 31,								Year ended December 31,
			2004			2003			2004			2003
Revenues:
Software and products		$	1,759		$	1,760		$	5,749			8,354
Services			1,092			1,409			5,481			4,704
Maintenance			2,180			1,925			8,554			7,504
Total revenues			5,031			5,094			19,784			20,562
Cost of revenues:
Software and products			294			*)    206			631			*)    846
Services			705			637			3,341			2,384
Maintenance			291			286			1,143			1,110
Total cost of revenues			1,290			1,129			5,115			4,340
Gross profit			3,741			3,965			14,669			16,222
Operating expenses:
Research and development			1,366			*)    1,433			5,140			*)    5,308
Sales and marketing			2,739			2,258			10,507			9,386
General and administrative			1,017			1,113			4,674			4,714
Restructuring			-			-			747			-
Total operating expenses			5,122			4,804			21,068			19,408
Operating loss			(1,381)			(839)			(6,399)			(3,186)
Financial income, net			237			241			786			1,037
Net loss			(1,144)			(598)			(5,613)			(2,149)
Basic and diluted net loss    per share		$	(0.06)		$	(0.03)		$	(0.29)		$	(0.11)
Weighted average number of   shares used in computing   basic and diluted    net loss per share			19,315,863			19,033,778			19,282,800			19,011,435
*)    Reclassified