Notify Technology Reports Results for the Third Fiscal Quarter Ended June 30, 2001

SAN JOSE, Calif., Aug. 6 Notify Technology Corporation (Nasdaq: NTFY), an innovative communications service and software provider for wireline and wireless notification and messaging services, today announced financial results for the quarter ended June 30, 2001.

Net sales for the legacy wireline products and services for the third quarter of fiscal 2001 decreased to $308,000 compared to $903,000 for the corresponding period of fiscal 2000. The Company's net loss for the third quarter of fiscal 2001 was $894,000, with basic and diluted earnings per share of $(0.22), compared to a loss of $731,000, with basic and diluted earnings per share of $(0.20) for the third quarter of fiscal 2000.

Net sales for the nine-month period ended June 30, 2001 decreased to $1,060,000 compared to $3,657,000 for the corresponding period for fiscal 2000. The Company's net loss for the nine month period ended June 30, 2001 was $2,536,000 or $0.64 loss per share, compared to a loss of $2,126,000 or $0.60 loss per share for the corresponding period of fiscal 2000. The decrease in net sales between the two periods was primarily due the reduction in shipments of caller-id products for telephone company promotional programs. The Company believes this trend will continue and expects minimal sales of its legacy wireline products in the future. The Company has concentrated its development efforts on its NotifyLink wireless technology and has refocused its marketing and sales efforts at wireless device manufacturers and wireless carriers.

The Caller ID product line accounted for 30% of the net sales for the third fiscal quarter. Revenue derived from royalty payments for the rights to use the Company's technology and Centrex Receptionist sales and service accounted for 7% and 34% of third fiscal quarter net sales, respectively. Notify closed a $5 million financing subsequent to the end of the third fiscal quarter that provided the necessary funding to meet the Nasdaq Review Panel's requirement for continued Nasdaq listing. The funds derived from this financing are not reflected in the balance sheet ended June 30, 2001.

"We are pleased that we were successful in presenting a plan to the Nasdaq Panel in the third fiscal quarter to retain our Nasdaq listing and with the closing of our financing, we are now focused at carrying out that plan," said Paul DePond, Chief Executive Officer. "We have made significant strides in transitioning our business into the wireless marketplace as evidenced by the national exposure our products are getting under the brand name of Motorola MyMail." 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 Technology currently sells its products through OEM relationships to major telephone companies, ISP's and wireless carriers. The company is headquartered in San Jose, California. For more information, see www.notifycorp.com or call 408-777-7920.

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.

                        NOTIFY TECHNOLOGY CORPORATION
                           Statements of Operations

                                 Three-months             Nine-months
                                ended June 30,           ended June 30,
                            2001          2000         2001         2000
                               (unaudited)                 (unaudited)

    Net sales           $  307,841    $  902,461  $ 1,059,947   $ 3,656,742
    Cost of sales          122,753       591,315      866,388     2,613,861
    Gross profit           185,088       311,146      193,559     1,042,881

    Operating expenses:
     Research &
      development          266,309       339,110      794,492     1,058,683
     Sales and marketing   188,459       286,654      650,126       948,641
     General and
      administrative       628,334       428,184    1,394,267     1,212,852
    Total operating
     expenses            1,083,102     1,053,948    2,838,885     3,220,176

    Loss from operations  (898,014)     (742,802)  (2,645,326)   (2,177,295)
    Other (income) and
     expense, net           (3,692)      (11,387)    (109,718)      (51,580)
    Net loss            $ (894,322)   $ (731,415) $(2,535,608)  $(2,125,715)

    Basic and diluted
     earning per share  $    (0.22)   $    (0.20) $     (0.64)  $     (0.60)

    Weighted average
     shares outstanding  4,027,786     3,652,714    3,962,497     3,546,010



                        NOTIFY TECHNOLOGY CORPORATION
                                Balance Sheets


                                                    June 30,      Sep 30,
                                                     2001           2000
                                                  (unaudited)
    Assets:
    Current assets:
     Cash and cash equivalents                    $  248,947   $  1,076,493
     Accounts receivable                              77,681        411,334
     Inventories                                     174,446        502,660
     Other current assets                            183,117         50,686
    Total current assets                             684,191      2,041,173

    Other assets:
     Property and equipment, net                     180,293        276,115

     Total assets                                 $  864,484   $  2,317,288

    Liabilities and shareholders' equity
     Current liabilities:
      Accounts payable                            $  348,087   $    302,573
      Other accrued liabilities                      720,539        900,792
    Total current liabilities                      1,068,626      1,203,365

    Shareholders' equity:
     Common stock                                      5,275          4,887
     Additional paid-in capital                   15,059,678     13,842,524
     Retained earnings                           (15,269,095)   (12,733,488)
    Total shareholders' equity                      (204,142)     1,113,923
      Total liabilities and shareholders' equity  $  864,484   $  2,317,288