EDEN PRAIRIE, Minn.--March 13, 2002--NVE Corporation today announced that it has been awarded a Phase-II Small Business Innovation Research (SBIR) contract by the United States Air Force Research Laboratory for up to $750,000 over a two-year period.

The contract was awarded for the development of a high-speed digital isolator or "coupler" for space applications. This contract was awarded as a "Fast-Track" contract, meaning that NVE had successfully secured matching commercial funding. That funding was from a major U. S. electronics component supplier. In addition to military applications, there are many parallel applications for the high-speed couplers in commercial networks and telecommunications. This award brings the total value of NVE's government agency contracts awarded in the fiscal year ending March 31, 2002 to approximately $5 million. These contracts will be fulfilled within two years.

Daniel Baker, Ph.D., NVE's president and CEO, commenting on the award said: "This contract demonstrates the commercial significance of NVE's revolutionary coupler technology. It will allow us to extend the advantages of our award-winning products in eliminating bandwidth bottlenecks while helping America's defense."

NVE is a recognized leader in the practical commercialization of "spintronics," which many experts believe represents the next generation of microelectronics. The Company has three business units. 1) Couplers-The company's IsoLoop® Data Couplers are used in industrial networks and telecommunications systems, and are at least five times faster than conventional optical couplers. 2) Sensors-The company's revolutionary spintronics/Giant Magnetoresistance (GMR) sensors allow more precise robotics, anti-lock brakes, and currency detection systems. 3) Intellectual Property-NVE licenses spintronics magnetic memory(MRAM) intellectual property to companies such as Motorola, Union Semiconductor Technology (USTC), and Honeywell International. The company leverages its intellectual property through government contracts including contracts with the U.S. Army, Navy, Air Force, and National Science Foundation. Specific contract areas include ensuring airframe structural integrity, detection of land mines, detection of concealed weapons, and identification of biological agents.

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.