Notify Technology Reports Results for the First Fiscal Quarter Ended December 31, 2002

“Revenue increases over 800% from same period last year, net loss decreases over 600% from same period last year”

San Jose, CA, February 6, 2003 -- Notify Technology Corporation (NASDAQ: NTFY), today announced financial results for the quarter ended December 31, 2002.

Revenues for the three month period ended December 31, 2002 increased to $2,262,474 from $232,945 reported for the comparable three month period of fiscal 2002. The Company’s net loss for the three month period ended December 31, 2002, was $98,536 or a net loss per share of $0.02, compared to a net loss of $604,929, or a net loss per share of $0.15, reported for the corresponding period of fiscal 2002.

Sales of the Visual Got Mail Solution for voice messaging were responsible for the increase in revenue in the first fiscal quarter of 2003. The Visual Got Mail Solution was first shipped in April 2002, which was the third fiscal quarter of 2002. The Visual Got Mail solution accounted for 95% of the revenue for the fiscal quarter ended December 31, 2002 followed by the Centrex Receptionist at 2%.

The gross margin of 29.3% for the three month period ending December 31, 2002 decreased significantly compared to 85.8% for the same period in the prior year. This reduction in gross margin was due to a complete change of product mix from low volume sales of the high margin Centrex Receptionist product to high volume sales of the lower margin Visual Got Mail Solution product. In addition, the Company experienced royalty revenue of $18,200 in the three month period ended December 31, 2002 compared to $63,880 in the three month period ended December 31, 2001.

Demand for the Visual Got Mail Solution remains strong and as of December 31, 2002 the Company had an order backlog of over $2,100,000. Notify Technology’s Visual Got Mail solution is comprised of two components that provide consumers with visual notification of new voicemail messages. The first component is the Call Manager 100 device or Customer Premise Equipment (CPE). The second component is the Visual Got Mail Server that retrieves information from the voice-messaging platform regarding a consumers voice message status. The Visual Got Mail business model realizes revenue from both the CM100 CPE sales and recurring revenue from the Visual Got Mail notification service on a per subscriber, per month basis. A key aspect of the Visual Got Mail program is the revenue from a monthly service fee collected based on the number of active user accounts. This revenue source will be more significant if the installed base of Visual Got Mail Solution grows. The service fees for the three month period ended December 31, 2002 were $216,000.

Over the past year, the Company has focused a major portion of its research and development on its wireless software products and services. In the first quarter of fiscal 2003, customer interest in the form of inquiries and evaluations increased significantly for the NotifyLink Enterprise Edition product designed for use with Novell GroupWise. Revenue for the NotifyLink Enterprise Edition is in the form of annual contracts recognized on a straight-line basis over a twelve month period. Individual contracts signed for Novell GroupWise wireless products increased in November and December but had no significant impact on total revenues.

“We are very happy that our Visual Got Mail Solution program has performed well for nine months. We have successfully serviced a rapidly growing installed base of users. We handle more than a million voice mail inquiries each day through our server center. We also hope our backlog will allow us to continue to maintain Visual Got Mail Solution revenue over the coming quarters,” said Paul DePond, Chief Executive Officer. “The sales of our Visual Got Mail Solution continues to be a major component of our revenue while we are building longer term revenue with our expanding wireless products and services.”

About Notify Technology
Founded in 1994, Notify Technology Corporation, (OTC: NTFY) is an innovative communications company offering wireline and wireless products and services. Notify’s wireline solution provides consumer voice mail notification to customers of CLECs in multiple states. Notify’s wireless solutions provide consumer, SOHO, and enterprise environments with notification, access, and management on a variety of wireless 2-way devices. Notify sells its products through wireline carriers and wireless carriers. The company is headquartered in San Jose, Calif.  For more information, see www.notifycorp.com or call 408-777-7920.

Forward-Looking Statements: This press release contains forward-looking statements related to Notify Technology that involve risks and uncertainties, including, but not limited to, the statements regarding value of shifting product focus and the sufficiency of the Company’s working capital.  Those statements are based on current information and expectations and there are important factors that could cause actual results to differ materially from those anticipated by such statements. These risks include, but are not limited to, our ability to deliver products and manage growth, market acceptance of certain products, as well as other risks.  These forward-looking statements are made in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  For further information about these factors that could affect Notify Technology's future results, please see the Company’s filings with the Securities and Exchange Commission.  Prospective investors are cautioned that forward-looking statements are not guarantees of performance.  Actual results may differ materially from management expectations.