EDEN PRAIRIE, Minn.--July 21, 2003--NVE Corporation (NasdaqSC: NVEC) announced that it was notified today that the company has been recertified as eligible to compete for awards under the U.S. Small Business Administration (SBA) Small Business Innovation Research (SBIR) program.

On July 1, 2003, the company announced that the SBA had found that NVE was ineligible to compete for SBIR awards because of the company's ownership structure. Specifically, 13 CFR Section 121.702(a) requires a business to be at least 51% owned by one or more individuals to be eligible to compete for SBIR awards. The company's largest shareholder, Norwest Equity Partners, transferred most of its holdings to an individual to facilitate NVE's recertification efforts.

The company does not expect the brief period of SBIR ineligibility to have a significant impact on its SBIR revenue or total revenue.

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, events, financial results or performance are forward-looking statements that are subject to certain risks and uncertainties including, among others, the awarding of future government contracts as well as the risk factors listed from time to time in the company's filings with the SEC, including the company's Annual Report on Form 10-KSB and other periodic reports filed with the SEC.