EDEN PRAIRIE, Minn.--January 31, 2005--NVE Corporation (NasdaqSC: NVEC) today confirmed that Magnetoresistive Random Access Memory (MRAM) alpha samples recently announced by Cypress Semiconductor Corporation are covered by NVE's technology agreement with Cypress.

MRAM is a revolutionary memory that uses electron spin to store data. On January 27, 2005 Cypress announced it had provided fully functional 256-kilobit alpha samples.

NVE President and CEO Daniel A. Baker, Ph.D., said: "These are remarkable devices, and we congratulate the talented Cypress team led by Jeff Kaszubinski on an impressive accomplishment."

"We see MRAM as the answer to a critical need in semiconductor memory applications-a single-chip, fast write, low power, fail safe, high-reliability nonvolatile memory," commented Jeffrey K. Kaszubinski, president and CEO of Cypress' Silicon Magnetic Systems subsidiary company. "The technology developed by NVE Founder Dr. James Daughton and others at NVE was important to us in reaching this milestone."

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

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, such factors as uncertainties relating to MRAM production by our licensees, risks in the enforcement of our patents, our dependence on Cypress for potential supply of MRAM, as well as the risk factors listed from time to time in our filings with the SEC, including our Annual Report on Form 10-KSB and other reports filed with the SEC.

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