Press Release August 25, 2003
NVE Announces Completion of Sale of 213,700 Shares by Founder

EDEN PRAIRIE, Minn.--August 25, 2003--NVE Corporation (NasdaqSC: NVEC) announced today that James M. Daughton, Ph.D., the company's founder and chief technology officer, has completed the sale of 213,700 shares of NVE common stock pursuant to Rule 144 under the Securities Act of 1933. Daughton continues to own 216,800 shares of NVE common stock.

The sales took place on the open market between July 22, 2003 and August 25, 2003. Daughton, who will be 67 on September 5, said he sold the shares for estate-planning purposes and plans to hold his remaining shares indefinitely.

NVE is a leader in the practical commercialization of spintronics, which many experts believe represents the next generation of microelectronics. NVE sells spintronic products including sensors and couplers to revolutionize data acquisition and transfer, and licenses its MRAM intellectual property.

Statements used in this press release that relate to future plans or events are forward-looking statements that are subject to certain risks and uncertainties.

NVE Corporation, 11409 Valley View Road, Eden Prairie, MN 55344-3617