Can we customize email notification based on Project Status

[ravimishra]

Normal scenario:
Project status is in development and email notification can be sent when reporter logs an issue to associated users.
It is great feature to have.

Now if we think of a Customized scenario:
Project status is changed to release. Can we customize email notifications such that if someone logs issue, email notification should be sent to all members of that project.

If some one have tried it before or have more visibility about the same, please let me know, it will help in evaluation process.

Thanks and have a great day,
~Ravi
:)