Press Release May 22, 2003
NVE Wins Government MRAM Contract

EDEN PRAIRIE, Minn.--May 22, 2003--NVE Corporation (NasdaqSC: NVEC) announced today that it has been awarded a contract by the Office of Naval Research to develop advanced Magnetic Random Access Memory ("MRAM"). The contract represents a continuation of NVE's government MRAM funding, which began several years ago and has resulted in several important advances in the race to develop a manufacturable MRAM chip. The funding for the initial contract phase is approximately $435,000.

Magnetic Random Access Memory ("MRAM") uses "spintronics," electrons' spin rather than their charge to store data. MRAM has the potential of combining the speed of semiconductor memory with the nonvolatility of magnetic disk drives, and could eventually replace conventional memories. MRAM is inherently nonvolatile, meaning the data remain even when power is removed.

Commenting on the award, Daniel A. Baker, Ph.D., NVE's president and CEO, said: "This contract further strengthens our MRAM intellectual property portfolio, which is already one of the best in the industry."

NVE has licensed MRAM intellectual property to several companies. Current NVE licensees include Cypress Semiconductor Corporation, Honeywell International, Union Semiconductor Technology Corporation, and Motorola, Inc.

Jeffrey K. Kaszubinski, president and CEO of Cypress' Silicon Magnetic Systems subsidiary company, calls MRAM "the Holy Grail" of memory. "MRAM is going to find applications everywhere," Kaszubinski commented. "Once it hits mainstream production, it will attack every established memory market."

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.

More information on NVE can be found at More information on the ONR program, including an illustration of an MRAM cell, can be found at:

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 company's ability to satisfy NASDAQ's continued listing requirements for SmallCap issuers, 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.