8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

Date of report (date of earliest event reported):
March 4, 2008

Unify Corporation

(Exact name of registrant as specified in its charter)

Delaware	001-11807	94-2710559
(State or other jurisdiction	(Commission File No.)	(I.R.S. Employer
of incorporation)		Identification No.)

2101 Arena Boulevard
Sacramento, California 95834
(Address of principal executive offices)

Registrant’s telephone number, including area code:
(916) 928-6400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

On March 4, 2008, Unify Corporation (the "Company" or “Unify”) issued a press release regarding a reduction of the Company's debt due to conversion of debt into Unify Common Stock. The full text of the Company's press release is attached hereto as Exhibit 99.1.

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Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

Exhibit No.	Description
99.1	Press release dated March 4, 2008

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 4, 2008

By:	/s/ Steven Bonham
	Steven Bonham
	Vice President and CFO
	(Principal Financial and Accounting Officer)

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EX-99.1

Exhibit 99.1

UNIFY ANNOUNCES REDUCTION IN DEBT

Company Applies for NASDAQ Listing

SACRAMENTO, Calif., March 4, 2008 - Unify Corp. (OTCBB: UFYC), a global provider of application modernization solutions, today announced that ComVest Capital LLC has converted approximately $1.1 million of debt into 226,000 shares of registered Unify common stock during the month of February, 2008. According to filings with the SEC, ComVest subsequently sold these 226,000 shares in the open market.

After the conversion of Note 1 announced in October 2007, the conversion of Notes 2 and 3 for ComVest Capital announced today, and the principal payments made by Unify prior to these conversions, the Company’s current convertible term debt balance as of today is $1.5 million. The Company also completely repaid its $1.85 million line of credit balance during February 2008, resulting in a zero balance as of today.

“The conversion of this debt to equity has increased our shareholders’ equity such that we believe we now meet all of NASDAQ’s listing requirements,” said Todd Wille, CEO of Unify. “We have filed our application with the NASDAQ and will work with NASDAQ to complete the application process. We believe the successful listing of Unify’s stock on NASDAQ will lead to increased liquidity for our shares by providing additional access to institutional investors.”

About Unify

Unify is a global provider of service-oriented architecture (SOA) enablement, application modernization and application enhancement solutions. The company has a rich heritage of delivering enterprise software and services for modernizing and maximizing the performance of applications and data while providing significant and measurable return on investment for customers. Unify’s market leading technologies help organizations drive business optimization, improve collaboration, increase customer service and reduce costs. Unify is headquartered in Sacramento, Calif., with offices in London, Munich, Paris, and Sydney. Visit www.unify.com or email us at info@unify.com.

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