EDEN PRAIRIE, Minn.--May 2, 2007--NVE Corporation (Nasdaq: NVEC) announced today financial results for the quarter and fiscal year ended March 31, 2007.

Product sales for the fourth quarter of fiscal 2007 increased 50% over the prior-year quarter to $4.19 million from $2.80 million. Total revenue, consisting of product sales and contract research and development revenue, increased 31% to $4.57 million for the fourth quarter of fiscal 2007 from $3.48 million in the prior-year quarter. Net income for the fourth quarter of fiscal 2007 increased 151% to $1.55 million, or $0.33 per diluted share, compared to $619,744, or $0.13 per share, for the prior-year quarter.

For fiscal 2007, product sales increased 73% to $14.4 million from $8.35 million for fiscal 2006. Total revenue increased 35% to $16.5 million for fiscal 2007 from $12.2 million for the prior year. Net income for fiscal 2007 increased 166% to $4.78 million, or $1.00 per diluted share, compared to $1.80 million, or $0.39 per share, for fiscal 2006.

"We are pleased to report record revenue and net income for the fourth quarter and fiscal year," said NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. "Net income for the quarter more than doubled, driven by strong product sales and increased gross profit margins. We enter fiscal 2008 with a solid balance sheet, products that are in demand, and an excellent intellectual property portfolio."

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 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, 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-K and other reports filed with the SEC.

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NVE CORPORATION STATEMENTS OF INCOME QUARTERS AND YEARS ENDED MARCH 31, 2007 AND 2006 (Unaudited) Quarter Ended March 31 2007 2006 ------------ ------------ Revenue Product sales $ 4,192,307 $ 2,797,882 Contract research and development 372,911 684,892 ------------ ------------ Total revenue 4,565,218 3,482,774 Cost of sales 1,563,493 1,600,990 ------------ ------------ Gross profit 3,001,725 1,881,784 Expenses Research and development 534,967 487,470 Selling, general, and administrative 529,667 517,385 ------------ ------------ Total expenses 1,064,634 1,004,855 ------------ ------------ Income from operations 1,937,091 876,929 Interest income 202,894 99,178 Interest expense - (967) Other income - 3,353 ------------ ------------ Income before taxes 2,139,985 978,493 Provision for income taxes 586,032 358,749 ------------ ------------ Net income $ 1,553,953 $ 619,744 ============ ============ Net income per share - basic $ 0.34 $ 0.13 ============ ============ Net income per share - diluted $ 0.33 $ 0.13 ============ ============ Weighted average shares outstanding Basic 4,627,383 4,603,634 Diluted 4,778,309 4,690,943 Supplemental financial data Stock-based compensation $ 8,167 $ - Cash paid for income taxes $ - $ 37,000

Year Ended March 31 2007 2006 ------------ ------------ Revenue Product sales $14,425,632 $ 8,345,967 Contract research and development 2,035,198 3,824,559 ------------ ------------ Total revenue 16,460,830 12,170,526 Cost of sales 5,787,658 6,218,533 ------------ ------------ Gross profit 10,673,172 5,951,993 Expenses Research and development 2,176,604 1,724,825 Selling, general, and administrative 1,950,999 1,756,142 ------------ ------------ Total expenses 4,127,603 3,480,967 ------------ ------------ Income from operations 6,545,569 2,471,026 Interest income 621,577 332,784 Interest expense (589) (6,051) Other income 25,246 43,020 ------------ ------------ Income before taxes 7,191,803 2,840,779 Provision for income taxes 2,411,020 1,043,033 ------------ ------------ Net income $ 4,780,783 $ 1,797,746 ============ ============ Net income per share - basic $ 1.03 $ 0.39 ============ ============ Net income per share - diluted $ 1.00 $ 0.39 ============ ============ Weighted average shares outstanding Basic 4,620,371 4,580,684 Diluted 4,771,297 4,667,994 Supplemental financial data Stock-based compensation $ 136,370 $ - Cash paid for income taxes $ 44,300 $ 52,950

NVE CORPORATION BALANCE SHEETS MARCH 31, 2007 AND MARCH 31, 2006 (Unaudited) March 31, 2007 March 31, 2006 -------------- -------------- ASSETS Current assets Cash and cash equivalents $ 397,423 $ 1,288,362 Marketable securities 982,415 1,248,103 Accounts receivable, net of allowance for uncollectible accounts of $15,000 2,005,005 1,667,029 Inventories 2,016,858 2,149,769 Deferred tax assets 1,328,106 1,576,472 Prepaid expenses and other assets 333,587 231,412 -------------- -------------- Total current assets 7,063,394 8,161,147 Fixed assets Machinery and equipment 4,458,948 4,149,080 Leasehold improvements 413,482 413,482 -------------- -------------- 4,872,430 4,562,562 Less accumulated depreciation 3,834,683 3,319,651 -------------- -------------- Net fixed assets 1,037,747 1,242,911 Marketable securities, long term 16,909,353 8,354,861 -------------- -------------- Total assets $ 25,010,494 $ 17,758,919 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 502,595 $ 399,762 Accrued payroll and other 590,287 470,392 Deferred revenue 29,357 77,373 Capital lease obligations - 33,281 -------------- -------------- Total current liabilities 1,122,239 980,808 Shareholders' equity Common stock 46,274 46,150 Additional paid-in capital 18,289,248 16,042,637 Accumulated other comprehensive loss (84,282) (166,908) Retained earnings 5,637,015 856,232 -------------- -------------- Total shareholders' equity 23,888,255 16,778,111 -------------- -------------- Total liabilities and shareholders' equity $ 25,010,494 $ 17,758,919 ============== ==============