Notify Technology Reports Results for the Second Fiscal Quarter Ended March 31, 2002 San Jose, CA, May 9, 2002 -- Notify Technology Corporation (NASDAQ: NTFY), today announced financial results for the quarter ended March 31, 2002. Revenues for the second quarter of fiscal 2002, which ended March 31, decreased to $140,000 compared to $390,000 for the corresponding period of fiscal 2001. The Company’s net loss for the second quarter of fiscal 2002 was $779,000, with basic and diluted earnings per share of $(0.19), compared to a loss of $858,000, with basic and diluted earnings per share of $(0.21) for the second quarter of fiscal 2001. On March 31, Notify’s balance sheet contained approximately $2.3 million in cash (including equivalents and restricted cash). ), a current ratio of 2.5 to 1, and no debt.  The Centrex Receptionist product line accounted for 54% of the revenue for the second fiscal quarter of 2002 followed by the royalty income from a multi-sense patent, which accounted for 24% of the revenue for the second quarter of fiscal 2002.  The increase in the gross margin for the second quarter of fiscal 2002 compared to the same period in the prior year was due primarily to high mix of non-inventory business such as royalty revenue and service related revenue on the Centrex Receptionist and the NotifyLink product lines. The Company announced on February 27, 2002, an agreement with AT&T to supply voice mail notification devices and monthly services using its Visual Got Mail technology for voice mail notification. This service requires an adjunct device supplied by us to every user of the voice mail service plus an ongoing monthly service fee. The program went active in early April, just after the end of the second fiscal quarter, at which time the Company began earning revenue under the program. A further update on this initiative will be provided in a separate press release. “We have established relationships with several new 2way wireless carriers, who will utilize their respective sales and market teams to launch our NotifyLink Enterprise Exchange product this month”, said Paul DePond, President of Notify Technology. “In addition, sales from our recent agreement for our Visual Got Mail products and services will provide Notify with incremental revenue while we are building longer term revenue with our expanding wireless products and services.”  About Notify Technology Founded in 1994, Notify Technology Corp, (NASDAQ: NTFY) is an innovative developer of wireline and wireless messaging services.  Notify Technology currently sells its products through OEM relationships with major telephone companies, telephone equipment distributors, Internet service providers and wireless service providers.  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.  NOTIFY TECHNOLOGY CORPORATION Statements of Operations       Three-months   Six-months     ended March 31,   ended March 31,     2002   2001   2002   2001     (unaudited)       (unaudited)   Net sales $140,268     $389,791     $373,213   $752,106 Cost of sales 17,583   397,445   50,776       743,635 Gross profit 122,685   (7,654)   322,437   8,471                   Operating expenses:                 Research & development 269,775   241,665   562,884        528,183   Sales and marketing 152,189   203,752   296,994   461,666   General and administrative 487,431   414,224   871,085   765,933 Total operating expenses 909,395   859,641   1,730,963     1,755,782                                     Loss from operations (786,710)   (867,295)   (1,408,526)   (1,747,311) Other (income) and expense, net (7,751)   (9,466)   (24,637)        (106,026) Net loss $ (778,959)   $ (857,829)   $(1,383,889)   $(1,641,285)                   Basic and diluted earning per share $ (0.19)    $ (0.21)   $  (0.34)    $  (0.42)                   Weighted average shares outstanding        4,058,279   4,025,977                4,052,537         3,929,852 Notify Technology CORPORATION   Balance Sheets                       Mar. 31,   Sep 30,           2002   2001           (unaudited)       Assets:               Current assets:               Cash and cash equivalents     $  1,690,950   $   3,304,823     Restricted cash     602,651