EDEN PRAIRIE, Minn.--April 27, 2005--NVE Corporation (NasdaqSC: NVEC) today announced financial results for the quarter and fiscal year ended March 31, 2005.

Total revenue for the fourth quarter of fiscal 2005 was $3.07 million compared to $3.21 million for the prior-year quarter, a decrease of 4%. Product sales for the quarter increased 3% over the prior-year quarter and 42% compared to the third quarter of fiscal 2005. Net income for the fourth quarter was $476,114 or $0.10 per diluted share, compared to $789,670 or $0.16 per diluted share for the prior-year quarter. Net income for the fourth quarter of fiscal 2005 included a net income tax benefit of $126,904 or $0.03 per diluted share, compared to $236,500 or $0.05 per diluted share for the fiscal 2004 quarter, from reductions of valuation allowances relating to deferred tax assets.

Total revenue for fiscal 2005 was $11.62 million compared to $12.01 million the prior year, a decrease of 3%. Product sales were $5.52 million compared to $5.39 million the prior year, an increase of 2%. For fiscal 2005 the company reported net income of $1.76 million or $0.37 per diluted share, compared to net income of $2.11 million or $0.45 per diluted share for fiscal 2004. Net income for fiscal 2005 included a net income tax benefit of $138,404, compared to $233,022 for fiscal 2004. The impact of the net income tax benefit was $0.03 per share for fiscal 2005 and $0.05 per share for fiscal 2004.

"NVE reported record product sales and a solid profit in fiscal 2005. Our shift to company-funded research and development from contract R&D increased our expenses and reduced R&D revenue, but resulted in new product designs. Product sales rebounded from weak industry conditions in our third fiscal quarter. Product sales increased despite a reduction in sales to St. Jude Medical due to inventory builds associated with St. Jude's adoption of our products in fiscal 2004," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D.

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 risks in continued profitability, uncertainties relating to MRAM production by our licensees, risks in the enforcement of our patents, uncertainties related to the awarding of future government contracts, risks associated with our reliance on several large customers, 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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NVE Corporation CONDENSED STATEMENTS OF INCOME QUARTER AND YEAR ENDED MARCH 31, 2005 AND 2004 (IN THOUSANDS EXCEPT PER SHARE; UNAUDITED) Quarter Ended March 31, 2005 March 31, 2004 Revenue: Contract research and development $ 1,481 $ 1,667 Product sales 1,591 1,541 -------------- -------------- Total revenue 3,072 3,208 Cost of sales 1,853 1,890 -------------- -------------- Gross profit 1,219 1,318 Expenses: Research and development 468 391 Selling, general & administrative 464 441 -------------- -------------- Total expenses 932 832 -------------- -------------- Income from operations 287 486 Interest income 62 49 Interest expense (2) (5) Other income 2 23 -------------- -------------- Income before income taxes 349 553 Income tax (benefit) (127) (237) -------------- -------------- Net income $ 476 $ 790 ============== ============== Weighted average shares outstanding 4,778 4,877 Net income per share - diluted $ 0.10 $ 0.16 Year Ended March 31, 2005 March 31, 2004 Revenue: Contract research and development $ 6,093 $ 6,617 Product sales 5,522 5,393 -------------- -------------- Total revenue 11,615 12,010 Cost of sales 7,010 7,445 -------------- -------------- Gross profit 4,605 4,565 Expenses: Research and development 1,393 1,103 Selling, general & administrative 1,868 1,831 -------------- -------------- Total expenses 3,261 2,934 -------------- -------------- Income from operations 1,344 1,631 Interest income 236 189 Interest expense (13) (25) Other income 53 80 -------------- -------------- Income before income taxes 1,620 1,875 Income tax (benefit) (138) (233) -------------- -------------- Net income $ 1,758 $ 2,108 ============== ============== Weighted average shares outstanding 4,734 4,727 Net income per share - diluted $ 0.37 $ 0.45 NVE Corporation CONDENSED BALANCE SHEETS MARCH 31, 2005 AND MARCH 31, 2004 (IN THOUSANDS) (UNAUDITED) March 31, 2005 March 31, 2004 ASSETS Current assets: Cash $ 1,240 $ 1,056 Investment securities 6,477 6,489 Accounts receivable, net 2,285 1,739 Inventories 1,573 1,150 Deferred tax asset 756 250 Other current assets 131 297 -------------- -------------- Total current assets 12,462 10,981 Fixed assets 1,728 1,439 -------------- -------------- Total assets $ 14,190 $ 12,420 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable 319 327 Accrued payroll and other 466 712 Other current liabilities 335 547 -------------- -------------- Total current liabilities 1,120 1,586 Long-term liabilities 33 101 -------------- -------------- Total liabilities 1,153 1,687 Shareholders' equity: Common stock 46 45 Additional paid-in capital 14,065 13,298 Accumulated other comprehensive (loss) income (132) 90 Accumulated deficit (942) (2,700) -------------- -------------- Total shareholders' equity 13,037 10,733 -------------- -------------- Total liabilities and shareholders' equity $ 14,190 $ 12,420 ============== ==============