Jacada Announces Sale of its Application Modernisation Business to Software AG for $26 Million

  • Company Set to Focus Exclusively on its High Growth Call Centre Solutions Business

LONDON - December 21st, 2007 - Jacada Ltd. (Nasdaq: JCDA - News), a leading provider of unified desktop and process optimisation solutions for customer service operations, today announced the sale of the company's application modernisation business to Software AG (FSE: SOW), a global leader in business infrastructure software and the fifth largest software company in Europe.

Under the terms of the asset purchase agreement, entered into on December 19, 2007, Software AG will pay $26 million in cash to acquire select Jacada products and related customer contracts. The effective date of the transaction is January 1, 2008.

Jacada will sell to Software AG the intellectual property and related customer contracts associated with the following Jacada products: Jacada Terminal Emulator, Jacada Studio, Jacada Innovator, Jacada Interface Server and Jacada Integrator, also known as Jacada HostFuse. Under the terms of the transaction, Jacada retains the right to develop, market, sell and support Jacada Interface Server and Jacada HostFuse in support of its call centre solutions business. In addition, Jacada maintains the intellectual property rights for Jacada WorkSpace and Jacada WinFuse, and all rights to the Jacada brand and trademark.

"This transaction marks a major milestone in the transformation of Jacada and positions us to enter 2008 with a singular focus on our call centre solutions business," said Paul O'Callaghan, president of Jacada. “During the past 3 years, our call centre solutions business has grown at a compounded annual growth rate of 61 per cent and represents 95 per cent of our $12.9 million backlog as of September 30, 2007. We expect that the growth we have seen in this business will continue at a similar pace throughout 2008. Our growing list of new customers and partners validates the market’s need for and acceptance of our unified desktop and process automation solutions. We are excited to be in the position to capitalise on this new, high growth market."

In addition to the products and customer contracts, Software AG will acquire select resources for the continued support, development and service delivery around these products and customer contracts.

"Jacada has held a leadership position in the application modernisation market for many years," said Karl-Heinz Streibich, chief executive officer at Software AG. "We believe the excellent products and talented staff will be a tremendous complement to Software AG's portfolio. Modernisation is just the first step in insuring that legacy applications play a full and productive roll in today's flexible IT infrastructures. We know that Jacada customers will benefit from our technology vision and continued product innovation."

"We believe our application modernisation customers are in great hands with Software AG," said Gideon Hollander, chief executive officer of Jacada. "We are working very hard to ensure a smooth transition and we feel confident that they will continue to receive excellent support and services going forward."

Gideon Hollander continued: "We believe that this is the beginning of a new chapter for Jacada. We are proud of the rapid, organic growth that we have achieved to date and look forward to continued success in executing our growth strategy and delivering compelling call centre solutions to the marketplace."

About Jacada
Jacada is a leading global provider of unified service desktop and process optimisation solutions that simplify and automate customer service processes. By bridging disconnected systems into a single, "intelligent" workspace, Jacada solutions create greater operational efficiency and increase agent and customer satisfaction. Founded in 1990, Jacada operates globally with offices in Atlanta, Georgia; Herzliya, Israel; London, England; and Munich, Germany. Jacada can be reached at www.jacada.com.

About Software AG
Software AG's 4,000 global customers achieve measurable business results by modernising and automating their IT systems and rapidly building new systems to meet growing business demands. The company's industry-leading product portfolio includes best-in-class solutions for managing data, enabling service-oriented architecture, and improving business processes.

By combining proven technology with industry expertise and best practices, our customers improve and differentiate their businesses - faster. Software AG has more than 37 years of global IT experience and approx. 3,800 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange.

This news release may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. 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. Jacada is a trademark of Jacada Inc. All other brands or product names are trademarks of their respective owners.

Jacada Media Contact:
Cindy Curtin Knezevich

Louise Sambells
The PressOffice - PR for Jacada

Investor Relations Contact:
Peter Seltzberg
Hayden Communications

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