NVE Announces Technology
Exchange with Cypress Semiconductor
Companies to share technology;
Cypress to invest over $6 million
EDEN PRAIRIE, Minn.--April 24, 2002--NVE Corporation (OTCBB: NVEC)
and Cypress Semiconductor Corporation (NYSE: CY) announced that
they have entered into a technology exchange agreement. Under the
agreement, Cypress made an equity investment in NVE, the companies
gain rights to each other's magnetic random-access memory (MRAM)
intellectual property, and Cypress will assist NVE in defending
its intellectual property rights under certain circumstances. Cypress
also agreed to manufacture wafers for NVE.
Cypress invested $6.228 million in NVE in exchange for 3.433 million
shares of NVE common stock, with an option to buy up to an additional
two million shares for $3.00 per share. NVE will nominate a Cypress
executive for election to its Board of Directors.
"NVE's technology will help speed our development of next-generation
electronic components," said Cypress Semiconductor President
and CEO T. J. Rodgers.
"This alliance solidifies our capital structure, gives us
a powerful MRAM ally, and augments our product manufacturing capability,"
commented NVE President and Chief Executive Officer Daniel A. Baker.
Unlike conventional DRAM and SRAM memories which lose data when
power is off, MRAM uses "spintronic" magnetic materials
that retain data when power is removed. Semico Research Corporation
predicts that MRAM has the potential to revolutionize the $48 billion
semiconductor memory market. Several manufacturers plan commercial
MRAM production by 2004.
In addition to Cypress, NVE has technology agreements with Agilent
Technologies (NYSE: A), Motorola, Inc. (NYSE: MOT), and Honeywell
International (NYSE: HON). NVE retains the right to license its
technology to other companies.
Cypress has annual revenues of approximately $860 million. The
company is "Driving the Communications Revolution"(TM)
with high-performance integrated circuits for network infrastructure
and access equipment.
NVE is a leader in the practical commercialization of "spintronics,"
which many experts believe represents the next generation of microelectronics.
NVE has developed an impressive portfolio of MRAM intellectual property
with research supported by government agencies including the Defense
Advanced Research Projects Agency (DARPA) Power Aware Computing/Communication
(PAC/C) and Magnetic Materials and Devices (MMD) projects, NASA,
the National Science Foundation, the Missile Defense Agency, the
Naval Research Laboratory, and the Department of Commerce. NVE's
commercial products include sensors and couplers which revolutionize
data acquisition and transfer.
Statements made in this release concerning the Company's or
management's intentions, expectations, or predictions about future
results or events are "forward-looking statements" within
the meaning of the Private Securities Reform Act of 1995. Such statements
are necessarily subject to risks and uncertainties that could cause
actual results to vary from stated expectations, and such variations
could be material and adverse. Additional information concerning
the factors that could cause actual results to differ materially
from the Company's current expectations is contained in the Company's
SEC filings.
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