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Notify Technology Reports Results for the Fiscal Year Ended September 30, 2011

SAN JOSE, Calif., Dec. 7, 2011 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY.PK) today announced financial results for its fiscal year ended September 30, 2011.

Total fiscal twelve-month revenue decreased 6% to $6,833,885 in the twelve-month period ended September 30, 2011 from $7,245,983 during the same period in the prior year. The net loss for the twelve-month period ended September 30, 2011 was $487,768 or $6.91 per diluted share. The company's financial performance dropped from net income of $616,038 or $8.75 per diluted share, reported for the same period in the prior year. The decrease in net income for the fiscal year reflects a combination of a reduction in new account sales of NotifyLink and increased spending to develop and launch its new NotifyMDM product line.

"This has been an exciting year for Notify as we have officially entered the mobile device management (MDM) market. In April we launched both our NotifyMDM On-Premise and On-Demand products which incorporate a level of design and user interface which is representative of 11 years of mobility experience," said Paul DePond, President and Chief Executive Officer of the company. "We are committed to enhancing our NotifyLink and NotifySync products while advancing the functionality of our NotifyMDM product to meet the competitive requirements in the MDM marketplace. Our commitment required an increase in our investment in product development by over 25% while reducing our profitability for FY 2011. The increased spending provided the additional development resources necessary to enhance our NotifyMDM product's functionality to remain competitive in a fast moving market."

Sales and Marketing expenses were $2,504,948 in the twelve-month period ended September 30, 2011 compared to $2,510,970 in the twelve-month period ended September 30, 2010. Spending remained flat even though we have increased our participation in industry marketing.

Research and Development expenses were $3,079,921 in the twelve-month period ended September 30, 2011 compared to $2,256,301 in the twelve-month period ended September 30, 2010. The increase was due to investment in costs to expedite the development and release of our NotifyMDM product line while still maintaining the capability to improve and support our NotifySync and NotifyLink products.

General and Administrative expenses decreased to $1,722,342 in the twelve-month period ended September 30, 2011 compared to $1,814,600 for the twelve-month period ended September 30, 2010. The decrease was primarily due to our decision to delist in fiscal 2011.

About Notify Technology Corporation

Founded in 1994, Notify Technology Corporation is an independent software vendor (ISV) who has specialized in wireless mobility solutions and services for the past 10 years. Notify's products including NotifyLink and NotifyMDM support all major smartphone and tablet platforms independent of wireless carrier or network. Notify sells its mobility products directly and through authorized resellers internationally. Notify is an official Apple iPhone Enterprise Development Partner, Android Development Partner, BlackBerry Development Partner, Windows Mobile, Windows Phone, and Symbian Alliance Member. The Company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 408-777-7930.

Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS

		Three-Month Periods		Twelve-Month Periods
		Ended September 30,		Ended September 30,
		2011	2010	2011	2010


Revenue:
Product revenue		$ 1,636,814	$ 1,878,112	$6,833,885			$ 7,245,983
Total revenue		1,636,814	1,878,112	6,833,885			7,245,983


Cost of revenue:
Product cost		4,449	18,612	24,689			45,743
Royalty payments		1,195	1,371	5,291			6,474
Total cost of revenue		5,644	19,983	29,980			52,217
Gross profit		1,631,170	1,858,129	6,803,905			7,193,766

Operating expenses:
	Research and development	796,801	676,429	3,079,921			2,256,301
	Sales and marketing	602,161	555,371	2,504,948			2,510,970
	General and administrative	455,981	444,863	1,722,342			1,814,600
Total operating expenses		1,854,943	1,676,663	7,307,211		6,581,871

Income from operations		(223,773)	181,466	(503,306)			611,895

Interest income and other, net		3,344	1,310	15,538			4,143

Net income (loss) before provision for income taxes		(220,430)	182,776	(487,768)			4,143

Provision for income taxes		--	--	--			--
Net income (loss)		$ (220,429)	$ 182,466	$ (487,768)			$616,038

Basic net income (loss) per share		$ (3.12)	$ 2.59	$ (6.91)			$ 7.82

Basic weighted average shares outstanding		70,556	70,476	70,556			70,403

Diluted weighted net income (loss) per share		$ (3.12)	$ 2.35	$ (6.91)			$ 8.75

Diluted weighted average shares outstanding		70,556	77,658	70,556			79,201

NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets

			Sept. 30,	Sept. 30,
			2011	2010

Assets:
Current assets:
		Cash and cash equivalents	$ 2,040,580	$ 2,526,654
		Accounts receivable, net	271,251	292,040
		Other assets	83,235	44,570
Total current assets			2,395,066	2,863,264
	Non-current assets
		Property and equipment, net	312,272	306,380
		Lease deposits	15,602	15,602
	Total non-current assets		327,874	321,982
		Total assets	$ 2,722,940	$ 3,185,246
Liabilities and shareholders' deficit
Current liabilities:
		Current portion of capital lease obligation	$ 2,665	$ 3,369
		Accounts payable	65,103	55,378
		Accrued payroll and related liabilities	426,151	405,203
		Deferred revenue	2,839,051	2,927,067
		Other accrued liabilities	128,915	123,066
Total current liabilities			3,461,885	3,514,083
Long-term liabilities:
		Long-term Deferred revenue	88,142	112,696
		Long-term capital lease obligations	12,120	3,174
Total long-term liabilities			100,262	115,870
Total liabilities			3,562,147	3,629,953
Shareholders' deficit:
		Preferred stock	- -	- -
		Common stock	71	71
		Additional paid-in capital	23,624,030	23,530,762
		Accumulated deficit	(24,463,308)	(23,975,540)
Total shareholders' deficit			(839,207)	(444,707)
		Total liabilities and shareholders' deficit	$ 2,722,940	$ 3,185,246