EDEN PRAIRIE, Minn.—March 13, 2001—NVE Corporation (OTCBB:NVEC) announced that the National Science Foundation (NSF) has awarded the company two SBIR Phase II grants. Each of these grants is designed to significantly advance the state-of-the-art for thin-film based magnetic sensors and isolators. These two grants total approximately $900,000 for completion over two years.

The objective of the first grant is to substantially improve the linearity of thin-magnetic sensors. These sensors are used in a wide variety of industrial, automotive, military and aerospace applications.

The second grant’s objective is to greatly improve the speed of Magnetic Tunnel Junction (MTJ) devices into the sub-nanosecond range. This extension of MTJ technology will be used by NVE to make very high speed signal transceivers to dramatically advance the performance of data networks in the telecommunications, industrial automation and computer industries.

Dr. Jim Daughton, NVE’s Chief Technical Officer, commenting on the grants stated, “These grants will greatly enhance NVE's capability to service a broader customer and market base through the incorporation of these advances in NVE products.”

NVE is a world leader in the supply of sensor and isolator components for use in a wide variety of communications, industrial and military applications where cost, speed, size, sensitivity, low power and the ability to operate in a board range of environmental conditions is required. NVE is widely recognized as the leading edge developer of the totally nonvolatile MRAM technology.

NVE, an ISO-9001 certified electronics component manufacturer, is located in Eden Prairie, Minnesota specializing in the combination of magnetically sensitive materials with integrated circuits.

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.