Press Release June 4, 2002
NVE Corporation Wins Government MRAM Contract

EDEN PRAIRIE, Minn.--June 4, 2002--NVE Corporation (OTCBB: NVEC) today announced that it has been awarded a United States Air Force Research Laboratory contract for approximately $1,125,000 to develop advanced Magnetic Random Access Memories (MRAMs) over the next two years.

Unlike conventional DRAM and SRAM memories which lose data when power is off, MRAM uses "spintronic" magnetic materials which retain data when power is removed. Such devices are important in military applications because of their immunity to power outages and radiation-induced failures. MRAM also has huge commercial potential; Semico Research Corporation predicts that MRAM has the potential to revolutionize the $48 billion semiconductor memory market.

NVE has developed an impressive portfolio of MRAM intellectual property with research largely supported by U.S. government agencies. The company's current commercial MRAM partners include Cypress Semiconductor Corporation (NYSE: CY), Motorola, Inc. (NYSE: MOT), Honeywell International (NYSE: HON), and Union Semiconductor Technology Corporation (USTC). NVE partners have announced plans for MRAM production as soon as the end of 2002.

Commenting on the award, Daniel Baker, Ph.D., NVE's president and CEO, said: "This award is our largest MRAM contract ever, and will strengthen what we believe is already one of the strongest intellectual-property portfolios in the industry."

NVE is a leader in the practical commercialization of "spintronics," which many experts believe represents the next generation of microelectronics. NVE's products include sensors and couplers which revolutionize data acquisition and transfer. The company also licenses spintronics/Magnetic Random Access Memory (MRAM) designs to memory manufacturers.

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.