Notify Technology Reports Results for the Fourth Fiscal Quarter and Fiscal Year Ended September 30, 2002

San Jose, CA, November 7, 2002 -- Notify Technology Corporation (NASDAQ: NTFY), today announced financial results for the quarter ended September 30, 2002.

Revenues for the twelve month period ended September 30, 2002 increased to $3,482,000 from $1,310,000 reported for the comparable twelve month period of fiscal 2001. The Company’s net loss for the twelve month period ended September 30, 2002, was $1,742,000 or a net loss per share of $0.41, compared to a net loss of $6,845,000, or a net loss per share of $1.72, reported for the corresponding period of fiscal 2001. The loss for the year ended September 30, 2001 includes a one-time, non-cash deemed beneficial conversion. The one-time, non-cash deemed beneficial conversion dividend of $3,507,000 was associated with the Company’s Series A Preferred Stock Offering that occurred in July 2001.

Revenues for the fourth quarter of fiscal 2002 increased approximately 600% to $1,774,000 compared to $250,000 for the corresponding period of fiscal 2001. The Company’s net loss for the fourth quarter of fiscal 2002 was $266,000, with basic and diluted earnings per share of $(0.06), compared to a net loss of $4,309,000 with basic and diluted earnings per share of $(1.07) for the fourth quarter of fiscal 2001. The quarter ending September 30, 2001 included the one-time, non-cash deemed beneficial conversion dividend on Series A Preferred Stock.

Sales of the Visual Got Mail solution for voice messaging were responsible for the increase in revenue in the fourth 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 device or Customer Premise Equipment (CPE). 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 CM100 CPE sales and recurring revenue from the Visual Got Mail notification service on a per subscriber, per month basis. The Visual Got Mail solution sold to a single customer accounted for 76% of the revenue for the fiscal year ended September 30, 2002 followed by the Centrex Receptionist at 6%.

The gross margin of 46.4% for the twelve month period ending September 30, 2002 increased significantly compared to 27.0% for the same period in the prior year. This improvement in gross margin was due in large part to the sale of previously written-down Call Manager inventory with an original cost of $560,000 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 2000. In addition, the Company experienced favorable gross margin business such as royalty revenue and service related revenue on the Visual Got Mail and Centrex Receptionist product lines.

Demand for the Visual Got Mail solution remains strong and, as of September 30, 2002, the Company had an order backlog of over $2,400,000. 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 if the installed base of Visual Got Mail solution grows. The program was active for the last six months of fiscal 2002 and the service fees amounted to $184,000 during that period.

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 cut back its level of investment in the wireless business in August 2002, although it continues to attract customer interest.

“We are pleased with the financial results of 2002. We were able to sustain our Visual Got Mail Solution revenue for the second half of the fiscal year and we hope our backlog will allow us to continue to maintain Visual Got Mail Solution revenue over the coming quarters,” said Paul DePond, Chief Executive Officer. “The sales of our Visual Got Mail solution was a major component of our revenue this fiscal year, while we are building longer term revenue with our expanding wireless products and services.”

About Notify Technology
Founded in 1994, Notify Technology Corporation, (OTC: NTFY) is an innovative communications company offering wireline and wireless products and services. Notify’s wireline solution provides consumer voice mail notification to customers of CLECs in multiple states. Notify’s wireless solutions provide consumer, SOHO, and enterprise environments with notification, access, and management on a variety of wireless 2-way devices. Notify sells its products through wireline carriers and wireless carriers. 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 statements regarding the sales and service revenue on the Visual Got Mail solution, shipment of our recorded backlog, change in our gross margins, and development of NotifyLink revenue.  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, 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.