Notify Technology Receives Initial Million Dollar Order for its Visual Got Mail Solution 

Notify’s legacy Visual Got Mail technology is a cost effective solution to help 
CLECs and ISPs offer consumers nation-wide voice messaging notification.

November 7, 2001 – Notify Technology Corporation (NASDAQ: NTFY), today announced it received a release on 50,000 units of an initial order for 100,000 units of it’s Call Manager 100 telephone adjunct which will be utilized in conjunction with it’s patent pending Visual Got Mail Service. The initial delivery of the 50,000 Call Manager adjuncts and Visual Got Mail service is scheduled to begin early in calendar 2002 and is expected to generate product and service revenue of approximately one million dollars. Notify Technology received the order from a major CLEC and is currently negotiating the final terms and conditions of the service agreement, which will provide additional recurring revenue from subscribers on a monthly basis. The CLEC has requested anonymity until the service agreement has been finalized.

Notify’s Visual Got Mail solution provides a critical notification link to voice messaging services offered by Competitive Local Exchange Carriers (CLECs) and Internet Service Providers (ISPs). Now CLECs and ISPs will have a cost-effective way to offer voice messaging notification to their customers nation-wide. Notify Technology’s product and service is a new alternative to the expensive costs that are associated with leasing voice messaging notification services from Local Exchange Carriers (LECs) who compete in the same space.

“Although Notify Technology’s main focus is to be a leading provider of products and services for wireless email access and management, this opportunity to leverage our legacy technology could have a very positive impact on Notify while diversifying our revenue base”, said Paul DePond, President and Founder of Notify Technology Corporation.

“We are currently in discussions with other CLEC about our Visual Got Mail solution. Our business model includes realizing revenues from both our CM100 telephone adjunct sales and recurring revenue from the Visual Got Mail notification service on a per subscriber, per month basis”, said DePond. 

The Visual Got Mail Solution
The Notify Visual Got Mail solution is composed of two components that provide consumers with visual notification of new voice messages. The first component is the Call Manager 100 or Customer Premise Equipment (CPE), a telephone adjunct device that provides the consumer with integrated visual notification of Caller-ID, Call Waiting-Caller-ID and new Voice Messages. The Call Manager 100 device has been integrated with additional features such as: access to voice mail at the press of a button, 97-entry call log to be viewed with “Review” keys, back-lit three-line display, new call indication, language settings for English or Spanish. 

The second component is the Visual Got Mail Server that retrieves information from the voice-messaging platform regarding a consumers voice message status. The Server will communicate the consumer voice message status, through the consumer’s telephone line, to the CPE device causing the new message waiting indication light to be illuminated. The consumer will be notified when there is a new voice message by the flashing red light on their Call Manager 100 device. Multiple Call Manager 100 devices may be connected to the same telephone line and the unit will work with almost any analog corded or cordless telephone.

The CLEC and ISP Challenge
Since the passing of the Telecommunications Act of 1996, Competitive Local Exchange Carriers (CLECs) have tried to offer local telephone service to the consumer market. Caller-ID and Voice messaging has been a key service targeted for the consumer market. Offering voice messaging to consumers presents two major challenges to the CLEC. The first challenge is the significant up front fixed costs associated with infrastructure requirements. The second challenge is the logistics and cost of notification due to the lack of direct access to the customer’s telephone line. A Local Exchange Carrier (LEC) offering voice messaging has direct access to place a “stutter dial” tone on a customer’s telephone line to indicate a new voice message. In order for the Competitive Local Exchange Carrier or Internet Service Provider (ISP) to offer a similar form of notification, they must pay each Local Exchange Carrier a monthly notification service for every Central Office Switch (CO), regardless of the number of customers per CO, for the entire area where the CLEC or ISP voice messaging could be offered. This problem increases dramatically when the CLEC or ISP is attempting to provide nationwide voice messaging services. The cost and logistics of negotiating the purchase of notification services from multiple LECs can make the CLEC or ISP voice messaging offering financially unfeasible. Notify’s Visual Got Mail solution enables the CLEC to spend their time and money marketing their voice messaging service rather than being held hostage by the logistics and costs dealing with purchasing notification services from the Local Exchange Carriers.

About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation, (NASDAQ: NTFY) is an innovative communications service and software provider for wireline and wireless notification and messaging services. Notify currently sells its products through OEM relationships to major telephone companies, ISP’s and wireless carriers. The company is headquartered in San Jose, CA. For more information, see www.notifycorp.com or call 408-777-7920.



Safe Harbor Statement
Statements in this press release regarding product development and introductions are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These statements involve risks and uncertainties, which include, but are not limited to, the success of negotiations, product order and revenue projections, market acceptance of products, and other risks. Please refer to the company’s filings with the Securities and Exchange Commission for more information on factors that could affect Notify’s future results. The Company undertakes no obligation to revise or publicly release the results of any revision to these forward looking statements.