Press Release April 19, 2005
NVE Comments on its MRAM Strategy

EDEN PRAIRIE, Minn.--April 19, 2005--NVE Corporation (NasdaqSC: NVEC) today commented on its MRAM strategy after being informed recently by Cypress Semiconductor Corporation that Cypress has discontinued its efforts to develop Magnetoresistive Random Access Memory (MRAM) and plans to sell the assets of its MRAM subsidiary.

NVE President and CEO Daniel A. Baker, Ph.D., said: "Cypress demonstrated 256-kilobit MRAMs working in customers' systems, which was an important accomplishment. There is a large market for MRAM, however the market for Cypress' low-density designs is limited. Furthermore, for us to monetize our intellectual property in the Cypress designs, we would have to sell MRAM in competition with our technology licensees."

"We believe that NVE is well-positioned with critical intellectual property covering a broad range of near-term and long-term MRAM designs," continued Baker. "Our MRAM strategy, therefore, will be to focus on an intellectual property business model, providing technology to enable revolutionary memory design rather than both providing technology and selling devices."

MRAM is a revolutionary memory fabricated with nanotechnology which uses electron spin to store data. MRAM has been called the ideal memory because it has the potential to combine the speed of SRAM, the density of DRAM, and the non-volatility of flash memory. On January 27, 2005 Cypress announced it had provided fully functional 256-kilobit alpha MRAM samples. On January 31, NVE confirmed that Magnetoresistive Random Access Memory (MRAM) alpha samples announced by Cypress were covered by NVE's technology agreement with Cypress.

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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