EDEN PRAIRIE, Minn.--June 28, 2001--NVE Corporation (OTCBB: NVEC) has been selected by the Defense Advanced Research Projects Agency for a contract under a new magneto-electronics effort, the Spins In Semiconductors (SPINS) Program. This new contract will result in $1.5 million in revenues to NVE over the coming three years. Joining the NVE team in this endeavor will be the University of Minnesota, Carnegie Mellon University, the University of Missouri and the National Institute of Standards and Technology.

Unlike existing microelectronic devices, which rely on electron charges, SPINS uses electron spin to store, process, and transmit information. SPINS devices will potentially be much faster, smaller, and power efficient than today's electronics. SPINS devices have the potential for switching times faster than one picosecond, or one trillion operations per second. Unlike other approaches that require super-cooling and special voltage levels, NVE's work will concentrate on nonvolatile memory and programmable logic functions operating at room temperature and using standard logic voltages."

Jim Daughton, Ph.D., NVE's chief technical officer, commenting on the award stated, "This contract will keep NVE at the forefront of magneto-electronics. This technology has the potential to dramatically extend our existing product lines as well as enable revolutionary new products."

NVE designs and manufactures isolator and sensor components with the potential to revolutionize data transfer. Its devices allow networks to run at much higher speeds than otherwise possible, and unprecedented precision in industrial control and robotics. NVE is also widely recognized as a leading-edge developer of nonvolatile MRAM technology.

This release contains forward-looking statements as defined in Section 21E of the Security and Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Security and Exchange Act.