NVE Receives Notice of
SBIR Ineligibility
Major shareholder exploring restructuring
to permit recertification effort
EDEN PRAIRIE, Minn.--July 1, 2003--NVE Corporation (NasdaqSC: NVEC)
announced today that it has received notification that the U.S.
Small Business Administration (SBA) has found that the Company does
not meet eligibility standards to compete for awards under the SBA's
Small Business Innovation Research (SBIR) program because of the
Company's ownership structure.
One of the Company's major shareholders is considering changing
the structure of its holdings in a way which would permit the Company
to be recertified as eligible to compete for SBIR awards. There
can be no assurance, however, of the successful consummation of
the shareholder's restructuring, the Company's recertification,
or the Company's continued SBIR eligibility.
Assuming a timely and successful recertification, the Company does
not expect the finding to have a significant impact on its ongoing
SBIR revenue or total revenue. The finding does not affect other
U.S. Government award programs, and the Company been advised by
legal counsel that the finding is unlikely to affect the approximately
$4.977 million in active SBIR contracts already awarded to the Company.
In the three months ended March 31, 2003, the Company was awarded
approximately $290,000 in SBIR contracts, which represented approximately
11% of total revenue during that three-month period.
NVE is a leader in the practical commercialization of spintronics,
which many experts believe represents the next generation of microelectronics.
NVE licenses MRAM intellectual property and sells spintronic products
including sensors and couplers to revolutionize data acquisition
and transfer.
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