PRODUCT ANNOUNCEMENT

EDEN PRAIRIE, Minn.—January 7, 2009—NVE Corporation (Nasdaq: NVEC) today announced the introduction of the IsoLoop® IL500-Series of digital isolators, designed to be cost-effective optocoupler replacements.

Compared to NVE’s industry-standard IL700-Series isolators, which have speeds up to 150 megabits per second, IL500-Series isolators operate at two megabits per second, offer a DC-correct design, and have an external synchronization option on certain models.

A patented, controllable refresh clock ensures that outputs will be synchronized to inputs within nine microseconds. Alternatively, on certain models the user can supply an external synchronization clock. Unique technology provides 25 nanoseconds worst-case propagation delay and 10 nanosecond pulse width distortion.

One-, two-, three-, and four-channel models are available for unmatched channel density. One- and two-channel models are available in either SOIC packages or unique 8-pin MSOPs. NVE’s MSOP isolators are billed as the world’s smallest of their type. Three- and four-channel models are available in 0.15 inch wide or 0.3 inch wide 16-pin SOIC packages. All NVE products are available in RoHS-compliant lead-free versions.

Extremely rugged, IL500-Series isolators operate over a supply voltage range of 3 to 5.5 volts and temperature range of -40 to +85 degrees Celsius. Typical transient immunity is 30 kilovolts per microsecond. The parts are UL 1577 approved; IEC 61010-2001 approval is pending.

Available now, IL500-Series Isolator prices are as low as $0.53 per channel in 1,000-piece quantities. Datasheets and more information are available at www.IsoLoop.com or www.nve.com.

NVE is a leader in the practical commercialization of spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store and transmit information. The company manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data. NVE has also licensed its spintronic magnetoresistive random access memory technology, commonly known as MRAM.

Statements used in this announcement that relate to future plans, events, or performance are forward-looking statements that are subject to certain risks and uncertainties including, among others the risk factors listed from time to time in our filings with the SEC, including our Annual Report on Form 10-K and other reports filed with the SEC.