Notify Technology Closes $5 Million Financing; Financing Will Provide Necessary Funding for Nasdaq Listing Compliance

SAN JOSE, Calif., July 24 /PRNewswire/ -- Notify Technology Corporation (Nasdaq: NTFY) today announced that on July 20, 2001 it completed a $5 Million financing as part of a private placement of its preferred stock and warrants. In the financing, the Company sold shares of Series A Preferred Stock convertible into an aggregate of 5,010,000 shares of common stock and warrants to purchase an aggregate of 1,753,500 shares of common stock at an exercise price of $1.00 per share. The investors in the financing also received certain anti-dilution and registration rights.

In connection with the financing, the Company granted Commonwealth Associates, L.P., the placement agent for the financing, an option to purchase securities equal to 18.5% of the securities sold in the financing. The lead investor in the private placement was ComVest Venture Partners L.P., an affiliate of the placement agent, purchasing approximately $1.4 Million of the securities sold in the financing. The proceeds from the financing, net of the placement agent's commission, were approximately $4,509,000. The proceeds from the financing will enable the Company to meet the net tangible asset requirement set by Nasdaq for the continued listing of the Company's securities on the Nasdaq SmallCap Market.

"The Company appreciates this vote of confidence from our new investors at a time when we are launching several of our new two-way wireless software products and services," said Paul DePond, President and Founder of Notify Technology. "Motorola has recently launched our NotifyLink desktop software for their P935 Timeport which can be seen in Motorola's nation-wide advertising under the brand name of Motorola MyMail Desktop and Desktop Plus." About Notify Technology Corporation

Founded in 1994, Notify Technology Corporation, (Nasdaq: NTFY) is a communications service and software provider for wireless and wireline 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. Safe Harbor Statement:

Certain statements in this news release, including statements concerning the continued listing of the Company's common stock and warrants on the Nasdaq SmallCap Market are forward looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based upon historical facts and involve risks and uncertainties that could cause actual results to differ from anticipated results. In particular, factors that could result in different results include the Company's failure to remain in compliance with Nasdaq's other listing requirements or a decision by the Nasdaq Listing Qualifications Panel to delist the Company's common stock and warrants from the Nasdaq SmallCap Market. Further information on risk factors that could affect results is detailed in Notify's filings with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-KSB for the year ended September 30, 2000 and its Form 10-QSB for the quarter ended March 31, 2000, filed with the Securities and Exchange Commission, including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." The Company undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.