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Press Release

Lillian Vernon Selects Jacada Unified Desktop Solution

Jacada to help leading national catalog and online retailer increase operational efficiencies and customer satisfaction

ATLANTA - January 11, 2007 - Jacada Ltd.(Nasdaq: JCDA), a leading provider of unified desktop and process optimization solutions for customer service operations, today announced that Lillian Vernon, a 54-year-old national catalog and online retailer that markets gift, household, children's and fashion accessory products, has selected Jacada WorkSpace as its standardized unified agent desktop for its customer service operations.

"Our customer service center agents are the frontline to our customers, and it is imperative each experience is outstanding," commented Mike Muoio, CEO for Lillian Vernon. "We are standardizing on Jacada WorkSpace as our unified desktop to create greater operational efficiency, increase agent and customer satisfaction and reduce agent training times, which is critical during our peak seasons." Instead of having to locate customer data in multiple systems, using Jacada WorkSpace, all relevant data can be automatically displayed when and as the agent needs it, significantly reducing the amount of time it takes to navigate through complex customer interaction processes.

Jacada WorkSpace, using non-invasive integration methods, will unify many unlinked processes into a single, intelligent desktop for each of the 500 Lillian Vernon agent desktop environments. "A principal requirement for this project was a rapid return on investment (ROI), and Jacada's non-invasive approach will help us circumvent any major IT infrastructure overhauls," remarked Muoio. "We are confident that the implementation of Jacada WorkSpace will enable us to achieve a payback within 12 months of deployment."

"Consumer expectations are at an all-time high - especially when it comes to retailers," remarked Paul O'Callaghan, president of Jacada. "Lillian Vernon is at the forefront of retail organizations, recognizing the tremendous positive impact that a unified desktop solution like Jacada WorkSpace can have on customer service operations. We are pleased to see progressive customer service organizations like Lillian Vernon standardizing on Jacada Workspace as their de facto unified customer service desktop."

About Lillian Vernon

Lillian Vernon Corporation is an American catalog merchant and online retailer that sells household, organizational, children's and fashion accessory products. A pioneer in customized merchandise, Lillian Vernon offers 14 different kinds of personalization and personalizes 5.3 million products a year. In business since 1952, they publish three catalog titles: Lillian Vernon, Lilly's Kids and The Big Sale Catalog. Lillian Vernon's corporate headquarters are located in Virginia Beach, Virginia.

About Sun Capital Partners, Inc.

Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 140 companies worldwide with combined sales in excess of $33.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, and affiliates with offices in London, Tokyo, and Shenzhen, China.

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.