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Press Release

State of Tennessee Recognizes Jacada Project with Excellence Award

Department of Correction "eTomis" Project Team Honored with ISM Award for Outstanding Utilization of Information Technology

Nashville, TN – December 10, 2003 – The Tennessee Department of Correction and Jacada Ltd. (Nasdaq: JCDA) have been honored by the State of Tennessee for their joint project "e-Tomis." The award was presented yesterday at the 2003 Annual Information Systems Management (ISM) Group Awards Ceremony held at the William R. Snodgrass Tennessee Tower in Nashville. The ISM awards are presented every year to agencies within the State of Tennessee with outstanding IS projects and leaders.

The "e-Tomis" application was the result of a massive six-month project to update the Tennessee Offender Management Information System (TOMIS), a mainframe computing system that 6000 correctional agency employees use to track 20,000 state inmates, 50,000 people on probation and parole, and 5,000 people in county jails.

"Out of all the outstanding entries we had to choose from, the e-Tomis project really stood out as exemplifying best practices in the area of Information Systems Management," said Gary Jenkins, chair of the ISM Awards Committee and Information Systems Director of Tennessee’s Department of Economic and Community Development. "e-Tomis showed a favorable cost-benefit in meeting the state’s business strategy of tracking felons."

The project began when the Department of Correction was seeking a more modern, easy-to-use system. Because of TOMIS’ limitations, it was thought that the only option was a complete replacement of the aging system, which would cost nearly $14 million.

Therefore, according to state officials, since TOMIS was functional and did what it was supposed to do, the department would have to continue using it for another 10 years unless a more cost-effective alternative was found.

The project team tested the "Web-enabling" technology from Jacada in a pilot application in 2001 and was satisfied that the technology allowed the underlying TOMIS system to remain intact, while a new Web browser-style interface was added on top.

The project team was able to update its existing system, spending only a small fraction of the cost of a complete replacement. By implementing the Jacada solution, data entry errors have decreased and the learning curve for mastering the system has been reduced from six months to a couple weeks.

Bill Vincent, a systems analyst with the Department of Correction, led the e-Tomis project team. "The e-Tomis project was a true collaborative effort between members of the Department of Corrections staff and Jacada," said Vincent. "The entire team is very pleased to have the project recognized as an outstanding example of the utilization of information technology."

This news release may contain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ substantially from these statements. For a more complete disclosure of these risk factors, please refer to the Company's Form 20F filed with the Securities and Exchange Commission. Jacada is a trademark of Jacada Inc. All other brands or product names are trademarks of their respective owners.