Notify Technology Reports Results for the Third Fiscal Quarter Ended June 30, 2002

“Revenue increase over 300% from same period last year with reported backlog of over $3.2 Million”

San Jose, CA, August 8, 2002 -- Notify Technology Corporation (NASDAQ: NTFY), today announced financial results for the quarter ended June 30, 2002.

Revenues for the third quarter of fiscal 2002 increased over 300% to $1,335,000 compared to $308,000 for the corresponding period of fiscal 2001. The Company’s net loss for the third quarter of fiscal 2002 was $91,000, with basic and diluted earnings per share of $(0.02), compared to a net loss of $894,000, with basic and diluted earnings per share of $(0.22) for the third quarter of fiscal 2001.

Sales of the Visual Got Mail solution for voice messaging were responsible for the increase in revenue in the third fiscal quarter of 2002. 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 telephone adjunct device. 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 Call Manager 100 device sales and recurring revenue from the Visual Got Mail notification service on a per subscriber, per month basis. The Visual Got Mail solution accounted for 87% of the revenue for the third fiscal quarter followed by the Centrex Receptionist at 6%.

The significant increase in the gross margin for the third quarter of fiscal 2002 compared to the same period in the prior year was due in large part to the sale of previously written-down Call Manager inventory with an original cost of $548,000 used in the Visual Got Mail solution. This inventory had been written down when the Company experienced reductions in the demand for its traditional Call Manager product line in fiscal 2001 and 2002. The high gross margin percentage experienced in the third fiscal quarter is not expected to repeat in the fourth fiscal quarter as a majority of the written-down inventory was sold in the third fiscal quarter of 2002. Independently, the Company experienced favorable gross margin business such as royalty revenue and service related revenue on the Visual Got Mail, Centrex Receptionist and the NotifyLink product lines.

Demand for the Visual Got Mail solution remains strong and, as of July 31, 2002, the Company had an order backlog of over $3,200,000 scheduled to be shipped over a period extending into fiscal 2003. A key aspect of the Visual Got Mail program is the revenue from a monthly service fee collected based on the number of active deployed units. This revenue source will be more significant when the installed base of Visual Got Mail users increases in size. Monthly service fees amounted to $56,000 in the third fiscal quarter.

The Company’s wireless software business continues to attract customer interest but has failed to generate any significant revenue. Over the past year, the Company has focused a major portion of its research and development on its wireless software products and services. Due to the lack of revenue from the Company’s wireless products and services, the Company is re-evaluating its level of investment in the wireless business.

“We are excited about the financial results of the quarter. We hope our backlog will allow us to continue to maintain increased sales over the coming quarters,” said Paul DePond, Chief Executive Officer. “The anticipated sales of our Visual Got Mail solution will be a major component of our revenue this fiscal year while we are building longer term revenue with our expanding wireless products and services.”

Notify Technology Corporation

Founded in 1994, Notify Technology Corporation is an innovative communications company offering wireless and wireline products and services. Notify Technology is quickly becoming a leading consumer, SOHO, and Enterprise environment provider of mobile wireless software and services for Over-The-Air-Push synchronization and management of email and PIM (contacts, calendar, tasks) independent of device and network. Notify’s wireline solution provides consumer voice mail notification to customers of CLECs in multiple states. The company is headquartered in San Jose, Calif.   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.