Notify Technology Reports Results for The First Quarter Ended December 31, 2000

SAN JOSE, Calif., Feb. 6 /PRNewswire/ -- Notify Technology Corp. (Nasdaq: NTFY - news), an innovative communications service and software provider for wireline and wireless notification and messaging services, today announced financial results for the quarter ended December 31, 2000. Revenues for the first quarter of fiscal 2001 decreased significantly to $362,000 compared to $1,070,000 for the corresponding period of fiscal 2000. The Company's net loss for the first quarter of fiscal 2001 was $783,000, with basic and diluted earnings per share of $(0.20), compared to a loss of $700,000, with basic and diluted earnings per share of $(0.20) for the first quarter of fiscal 2000. The loss in the first quarter of fiscal 2001 included a $200,000 accrual for losses on firm purchase commitments for inventory related to existing products. The Company believes the general market for its traditional products is weakening and the Company has refocused much of its efforts into wireline and wireless applications of its Visual Got Mail and NotifyLink technology. ``We continue to experience a weakness in the caller-id market,'' said Paul DePond, Chief Executive Officer, ``Although still actively selling our Call Manager caller-id product line, we have recognized the value of shifting our product focus into wireline email notification and wireless email notification, access, and management solutions. We have made significant progress in developing our wireless products and signing agreements with wireless customers but current revenues are primarily impacted by sales of our established products.'' The Call Manager product line accounted for 35% of the revenue for the first fiscal quarter followed by the Centrex Receptionist product, which accounted for 26% of fourth fiscal quarter revenue. About Notify Technology Corp. Founded in 1994, Notify Technology Corp. (Nasdaq: NTFY - news) is an innovative communications service and software provider for wireline and wireless notification and messaging services. Notify Technology currently sells its products through OEM relationships to major telephone companies, ISP's and wireless carriers. The company is headquartered in San Jose, Calif. For more information, see www.notifycorp.com or call 408-777-7920. Securities and Exchange Commission 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, product delivery, management of growth, revenue projections, market acceptance of products, the timing and duration of pilot tests of Notify's products, the company's ability to produce its product for roll-outs, 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.

                                                          Three-months
                                                       ended December 31,
                                                        2000           1999
                                                           (unaudited)
    Product sales                                   $362,315     $1,069,678
    Cost of sales                                    346,190        735,445
    Gross profit                                      16,125        334,233

    Operating expenses:
        Research & development                       286,518        379,036
        Sales and marketing                          257,914        318,386
        General and administrative                   351,709        363,261
    Total operating expenses                         896,141      1,060,683


    Loss from operations                            (880,016)      (726,450)
    Other (income) and expense, net                  (96,560)       (26,601)
    Net loss                                       $(783,456)    $ (699,849)

    Basic and diluted earning per share               $(0.20)       $ (0.20)

    Weighted average shares outstanding            3,835,818      3,432,946




                        Notify Technology CORPORATION
                                Balance Sheets

                                                     Dec. 31,      Sept. 30,
                                                        2000           2000
                                                  (unaudited)
    Assets:
    Current assets:
        Cash and cash equivalents                 $1,748,390     $1,076,493
        Accounts receivable                           62,899        411,334
        Inventories                                  354,578        502,660
        Other assets                                  49,583         50,686
      Total current assets                         2,215,450      2,041,173


    Other assets:
    Property and equipment, net                      229,872        276,115

    Total assets                                  $2,445,322     $2,317,288


    Liabilities and shareholders' equity

    Current liabilities:
        Accounts payable                             $58,955       $302,573
        Other accrued liabilities                    842,905        900,792
    Total current liabilities                        901,860      1,203,365

    Shareholders' equity:
        Common stock                                   5,264          4,887
        Additional paid-in capital                15,055,142     13,842,524
        Retained earnings                        (13,516,944)   (12,733,488)

    Total shareholders' equity                     1,543,462      1,113,923

        Total liabilities and shareholders'
          equity                                  $2,445,322     $2,317,288