Notify Technology Reports Results for the Fiscal Quarter Ended December 31, 2006

Wireless revenue increases by forty five percent from same quarter in prior year while gross margins increase by over forty two per cent.

---

For Immediate Release

Contacts:
Notify Technology Corporation                                          
Jerry Rice, Chief Financial Officer                                
Phone: 408-777-7927                                                 
jerry.rice@notifycorp.com   
                                 

San Jose, CA, February 16, 2007 -- Notify Technology Corporation (OTC: NTFY) today announced financial results for its fiscal quarter ended December 31, 2006. The Company showed a net loss for the fiscal quarter ended December 31, 2006, of $61,027 or a net loss per share of $(0.00), compared to a net gain of $116,117, or a net gain per share of $0.01, reported for the three month period ended December 31, 2005.   The NotifyLink software product line increased 45% to $882,515 from $610,020 during the same period last year.  The total revenues for the three-month period ended December 31, 2006 still contained revenue for the service portion of the Visual Got Mail Solution product line and was $148,931 in the three-month period ended December 31, 2006 compared to $234,852 in the same period in the prior year. This Visual Got Mail Solution service will cease on February 28, 2007 as the result of our customer merging with another entity.

The $1,031,446 of total revenue reported in the fiscal quarter ended December 31, 2006 compares to $1,520,957 of total revenue for the same period in the prior year.  Part of the decrease was due to the product mix in the three month period ended December 31, 2005 containing $675,387 of legacy hardware product that was discontinued for fiscal 2007.  A more significant comparison of the two periods is the gross margin which was $1,005,146 or 97.5% gross margin for the three-month period ended December 31, 2006 compared to $1,040,949 or 68.4% gross margin for the three month period ended December 31, 2005.  The results were virtually equal because the NotifyLink sales that replaced the Visual Got Mail Solution sales had much better margins.

“The significant growth in our wireless product revenue this year over last year is clear indication that Notify’s wireless products are meeting the market with success,” said Paul DePond, President of Notify Technology. “We will continue to expand the support of our wireless NotifyLink products in order to maintain a level of growth throughout the coming fiscal year.”

About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation, (OTC: NTFY) is an innovative software company developing mobility products for organizations of all sizes. Notify’s wireless solutions provide secure synchronized email and PIM access and management to any size organization on a variety of wireless 2-way devices and networks. Notify sells its wireless products directly and through authorized resellers internationally. The company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 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, statements regarding the improving performance and growth of our wireless products and the service revenue on the Visual Got Mail Solution.  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, the continuance of certain customer voice mail programs, the expectation that the revenue from the service portion of the Visual Got Mail Solution will decline due to customer decisions to withdraw from the consumer market that the Notify product supports, the acceptance of our wireline products in the market, our ability to continue to improve our existing products or develop new products or technologies, as well as other risks.  In particular, we cannot predict future NotifyLink revenues with any accuracy and do not know whether NotifyLink revenues will continue to grow at the rates we have recently experienced.  Increasing NotifyLink revenues will require, among other things, continued investments in our sales and marketing organization, and we have limited available cash resources to make these investments.  In addition, although we have amended outstanding warrants to address a penalty provision that triggered adverse accounting treatment, we have outstanding certain unit options that contain a similar provision that has not been amended and that could result in adverse accounting charges in future periods in the event of increases in our stock price.  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’s expectations.

 

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION

CONDENSED UNAUDITED STATEMENTS OF OPERATIONS