NVE CorporationEARNINGS REPORT

NVE Corporation Reports First Quarter Results

EDEN PRAIRIE, Minn.—July 18, 2012—NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter ended June 30, 2012.

Total revenue for the first quarter of fiscal 2013 decreased 9% to $7.46 million from $8.21 million in the prior-year quarter. The revenue decrease was due to a 64% decrease in contract research and development revenue, partially offset by a slight percentage increase in product sales. Net income for the first quarter of fiscal 2013 decreased 2% to $3.38 million, or $0.69 per diluted share, compared to $3.44 million, or $0.70 per diluted share, for the prior-year quarter.

“We are pleased to report strong earnings for the quarter, record gross margin as a percentage of revenue, and increased product sales,” 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 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 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 of decreased revenues, risks in the enforcement of our patents, litigation risks, as well as the risk factors listed from time to time in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2012.

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                    NVE CORPORATION                   
                  STATEMENTS OF INCOME                 
  QUARTERS ENDED JUNE 30, 2012 AND 2011 (UNAUDITED)

                               Quarter Ended June 30   
                                2012          2011     
                            ------------  ------------ 
  Revenue                                              
    Product sales            $ 7,030,745   $ 7,023,274 
    Contract research and                              
     development                 432,160     1,190,488 
                            ------------  ------------ 
  Total revenue                7,462,905     8,213,762 
                                                       
  Cost of sales                1,802,353     2,595,592 
                            ------------  ------------ 
  Gross profit                 5,660,552     5,618,170 
  Expenses                                             
    Selling, general, and                              
     administrative              536,110       615,830 
    Research and                                       
     development                 688,026       494,876 
                            ------------  ------------ 
                                                       
  Total expenses               1,224,136     1,110,706 
                            ------------  ------------ 
  Income from operations       4,436,416     4,507,464 
                                                       
  Interest income                562,618       565,529 
                            ------------  ------------ 
  Income before taxes          4,999,034     5,072,993 
  Provision for income                                 
   taxes                       1,621,376     1,633,765 
                            ------------  ------------ 
                                                       
  Net income                 $ 3,377,658   $ 3,439,228 
                            ============  ============ 
  Net income per share --                              
   basic                          $ 0.70        $ 0.72 
                            ============  ============ 
  Net income per share --                              
   diluted                        $ 0.69        $ 0.70 
                            ============  ============ 
  Weighted average shares                              
   outstanding                                         
    Basic                      4,824,745     4,776,198 
    Diluted                    4,886,873     4,893,915 


                       NVE CORPORATION                      
                       BALANCE SHEETS                       
                 JUNE 30 AND MARCH 31, 2012
                                                            
                                                March 31,   
                               June 30, 2012       2012     
                               -------------  ------------- 
  ASSETS                                                    
  Current assets                                            
    Cash and cash equivalents    $ 1,493,518    $ 1,544,536 
    Marketable securities,                                  
     short term                   18,903,884     17,551,629 
    Accounts receivable, net                                
     of allowance for                                       
     uncollectible accounts                                 
     of $15,000                    2,947,096      2,684,840 
    Inventories                    3,547,096      3,229,376 
    Prepaid expenses and                                    
     other assets                  1,199,691      1,159,852 
                               -------------  ------------- 
  Total current assets            28,091,285     26,170,233 
  Fixed assets                                              
    Machinery and equipment        7,876,694      7,488,211 
                                                            
    Leasehold improvements           777,585        720,882 
                               -------------  ------------- 
                                   8,654,279      8,209,093 
    Less accumulated                                        
     depreciation                  5,837,132      5,697,861 
                               -------------  ------------- 
  Net fixed assets                 2,817,147      2,511,232 
  Marketable securities, long                               
   term                           56,664,385     54,445,298 
                               -------------  ------------- 
                                                            
  Total assets                  $ 87,572,817   $ 83,126,763 
                               =============  ============= 
                                                            
  LIABILITIES AND SHAREHOLDERS' EQUITY                      
  Current liabilities                                       
    Accounts payable               $ 603,056      $ 663,702 
    Accrued payroll and other        730,440        867,331 
    Income taxes payable           1,397,138             -- 
                                                            
    Deferred taxes                    91,295        136,872 
                               -------------  ------------- 
  Total current liabilities        2,821,929      1,667,905 
                                                            
  Shareholders' equity                                      
    Common stock                      48,247         48,247 
    Additional paid-in                                      
     capital                      20,974,477     20,974,477 
    Accumulated other                                       
     comprehensive income          1,001,828      1,087,456 
                                                            
    Retained earnings             62,726,336     59,348,678 
                               -------------  ------------- 
                                                            
  Total shareholders' equity      84,750,888     81,458,858 
                               -------------  ------------- 
  Total liabilities and                                     
   shareholders' equity         $ 87,572,817   $ 83,126,763 
                               =============  =============