Notify Technology Reports Results for the Fiscal Year Ended September 30, 2001

San Jose, CA, November 7, 2001 -- Notify Technology Corporation (NASDAQ: NTFY), today announced financial results for its fiscal year, which ended September 30, 2001.

Revenues for the twelve month period ended September 30, 2001 decreased to $1,310,000 from $4,220,000 reported for the comparable twelve month period of fiscal 2000. The Company’s net loss for the twelve month period ended September 30, 2001, which includes a one-time, non-cash deemed beneficial conversion dividend on Series A Preferred Stock, was $6,844,000 or a net loss per share of $1.72, compared to a net loss of $3,526,000, or a net loss per share of $0.99, reported for the corresponding period of fiscal 2000.  The one-time, non-cash deemed beneficial conversion dividend of $3,507,000 was associated with the Company’s recent Series A Preferred Stock Offering that provided the necessary funding to meet the Nasdaq Review Panel’s requirement for continued Nasdaq listing.  The funds derived from this financing are reflected on the balance sheet ended September 30, 2001. The Company’s net loss for the twelve month period ended September 30, 2001, excluding the deemed beneficial conversion dividend, was $3,337,000 or $0.84 loss per share.

Revenues for the fourth quarter of fiscal 2001 decreased to $250,000 from $563,000 reported for the corresponding period of fiscal 2000.  The Company’s net loss for the fourth quarter of fiscal 2001 was $802,000 excluding the deemed beneficial conversion dividend and $4,309,000 including the deemed beneficial conversion dividend, compared to a net loss of $1,400,000 during the corresponding period of fiscal 2000. The net loss per share, including the deemed beneficial conversion dividend was $1.07 compared to a net loss per share $0.38 for the corresponding period of fiscal 2000. Although the Company believes the general market for its traditional products is weakening, its legacy products still made up 89% of the fiscal fourth quarter sales. The Company continues to focus all of its new product development efforts in its NotifyLink family of wireless products and services.

“Despite the shortfall in our revenue this year, we have launched several new wireless products through three wireless carriers and one device manufacturer,” said Paul DePond, Chief Executive Officer. “Viewing our business as a whole, we have recognized that there continues to be a residual demand for our wireline products and an increasing demand for our new wireless products.  Our Call Manager product line accounted for 45% of the revenue for the fourth fiscal quarter followed by the Centrex Receptionist product, which accounted for 35% of fourth fiscal quarter revenue.  We have been exploring other uses for our legacy products while continuing the necessary research and development to launch a full suite of wireless NotifyLink products in 2002. We ended the fiscal year with approximately $3.6 million in cash and cash equivalents, which we believe will give Notify the necessary working capital to meet our needs for the near future,” Mr. DePond further commented.

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.