DLK Semotus Solutions,

ITEM 3.01 NOTICE OF DELISTING OR FAILURE TO SATISFY A CONTINUED LISTING RULE OR STANDARD; TRANSFER OF LISTING.

In a letter dated December 17, 2007, Semotus Solutions, Inc. ("we") received a written notice from the staff of the American Stock Exchange stating that we are not in compliance with Sections 1003(a)(ii) and 1003(a)(iii) of the Amex Company Guide because Amex staff has calculated that, despite our reporting shareholders' equity in excess of $6 million as of September 30, 2007, our current shareholders' equity is below the Exchange's quantitative listing standards and it has concerns that Semotus will be unable to regain and/or maintain compliance going forward. The Amex determination was partly based on the fact that as of September 30, 2007 our ownership of Innofone common stock was valued at $3.63 million on our balance sheet. However, since September 30, 2007, Innofone's common stock has declined and Amex has currently valued our ownership of Innofone at $932,500. Therefore, our total current shareholders' equity would be approximately $3.97 million, below the $6 million requirement.

The Staff has therefore initiated delisting proceedings; unless we request a hearing on or before December 24, 2007, the securities of Semotus will be delisted from the American Stock Exchange. We have requested an appeal and hearing of the determination. Once filed, the appeal automatically stays the delisting of our common stock pending a hearing date, which is expected to be within 45 days, and Amex's decision.