EDEN PRAIRIE, Minn.--September 19, 2001--NVE Corporation (OTCBB: NVEC) announced it has reached an agreement with Digi-Key Corporation for Digi-Key to distribute NVE's most popular sensor/kits and isolator components.

The agreement provides for inclusion of NVE products in the widely-distributed Digi-Key print catalog, as well as its Web site. The Digi-Key Web site (www.digikey.com) will include detailed NVE component information, real-time pricing and availability data, online ordering/quote request, and online order status checking.

NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. commented, "This agreement is a great endorsement of NVE's new components, and a key element of our strategy to dramatically broaden our component distribution. Digi-Key is among the top 15 of the more than 800 electronic distributors in the United States and has done business with 99 of the top 100 electronic companies in the U.S. This agreement will provide NVE products tremendous exposure to a broad market."

"Digi-Key will provide exceptional service to our customers," added NVE Vice President John Myers. "They have a superb order fulfillment infrastructure; their fill rate is better than 90% compared to an industry average of 50% or less."

Digi-Key Product Specialist Bob Haring explained Digi-Key's motivation for the agreement, "The NVE line gives our customers high-performance alternatives to opto-isolators and Hall-effect sensors."

Privately-held and based in Thief River Falls, Minn., Digi-Key Corporation is one of the fastest-growing electronic component distributors in the United States.

NVE designs and manufactures isolator and sensor components which revolutionize data acquisition and transfer, and is a leading developer of nonvolatile MRAM technology.

Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Reform Act of 1995. Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary from stated expectations, and such variations could be material and adverse. Additional information concerning the factors that could cause actual results to differ materially from the Company's current expectations is contained in the Company's SEC filings.