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<SEC-DOCUMENT>0000724910-08-000012.txt : 20080723
<SEC-HEADER>0000724910-08-000012.hdr.sgml : 20080723
<ACCEPTANCE-DATETIME>20080723160753
ACCESSION NUMBER:		0000724910-08-000012
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20080630
FILED AS OF DATE:		20080723
DATE AS OF CHANGE:		20080723

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NVE CORP /NEW/
		CENTRAL INDEX KEY:			0000724910
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				411424202
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12196
		FILM NUMBER:		08965931

	BUSINESS ADDRESS:	
		STREET 1:		11409 VALLEY VIEW ROAD
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344
		BUSINESS PHONE:		9528299217

	MAIL ADDRESS:	
		STREET 1:		11409 VALLEY VIEW ROAD
		CITY:			EDEN PRAIRIE
		STATE:			MN
		ZIP:			55344

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PREMIS CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>q1q09.htm
<DESCRIPTION>QUARTERLY REPORT FOR THE PERIOD ENDED JUNE 30, 2008
<TEXT>
<html>
<font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font>
<p align="center"><font face="Times New Roman, Times, serif" size="5"><b>UNITED STATES<br>
  SECURITIES AND EXCHANGE COMMISSION</b></font><b><font style="font-size: 10pt; font-family: Times New Roman;"><br>
  Washington, D.C. &nbsp;&nbsp;20549</font></b>
<p align="center"><b><font face="Times New Roman, Times, serif" size="5">FORM 10-Q</font></b>
<p align="left"><font style="font-size: 8pt; font-family: Times New Roman;">(Mark One)</font><br>
<font style="font-size: 10pt; font-family: Times New Roman;">[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
  EXCHANGE ACT OF 1934<br>
  For the quarterly period ended &nbsp;&nbsp;<b><u>June 30, 2008</u></b></font>
<p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">or</font></p>
<p align="left"><font style="font-size: 10pt; font-family: Times New Roman;">[&nbsp;&nbsp;&nbsp;]
  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
  ACT OF 1934<br>
  For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>to&nbsp;<u>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  <br>
  Commission File Number: <b><u>000-12196</u></b></font> <br>
  <br>

<div align="center"><img src="nve-logo.gif" width="276" height="54"><font face="Arial, Helvetica, sans-serif" size="6">
  <br>
  <b>NVE Corporation</b><br>
  <font style="font-size: 10pt; font-family: Times New Roman;">(Exact name of registrant
  as specified in its charter)</font></font></div>
<font style="font-size: 10pt; font-family: Times New Roman;">
<div align="center">
  <p>&nbsp;</p>
</div>
</font>
<div align="center"></div>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
  <tr>
    <td width="48%">
      <p align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>Minnesota</u></b></font></p>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">
        &nbsp;</font></div>
    </td>
    <td width="48%">
      <p align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>41-1424202</u></b></font></p>
    </td>
  </tr>
  <tr>
    <td>
      <p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">(State
        or other jurisdiction of incorporation or organization)</font></p>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">(I.R.S.
        Employer Identification No.)</font></div>
    </td>
  </tr>
  <tr>
    <td width="40%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">
        &nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>11409
        Valley View Road, Eden Prairie, Minnesota</u></b></font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
    <td>
      <p align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>55344</u></b></font></p>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">(Address
        of principal executive offices)</font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">
        &nbsp;</font></div>
    </td>
    <td>
      <p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">(Zip
        Code)</font></p>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">
        &nbsp;</font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td colspan="3">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<b><u>(952)
        829-9217</u></b>&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td colspan="3">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;Registrant&#146;s
        telephone number, including area code</font></div>
      </td>
  </tr>
</table>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Indicate by check mark whether the registrant
  (1) has filed all reports required to be filed by Section 13 or 15(d) of the
  Securities Exchange Act of 1934 during the preceding 12 months (or for such
  shorter period that the registrant was required to file such reports), and (2)
  has been subject to such filing requirements for the past 90 days. &nbsp;[X]&nbsp;Yes
  &nbsp;[&nbsp;&nbsp;&nbsp;]&nbsp;No</font></p>
<p><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Indicate by check mark whether the registrant is a large accelerated filer,
  an accelerated filer, a non-accelerated filer, or a smaller reporting company.
  See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated
  filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange
  Act.</font>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td width="70%"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Large accelerated filer [&nbsp;&nbsp;&nbsp;]</font></td>
    <td><font style="font-size: 10pt; font-family: Times New Roman;">Accelerated filer [X]</font></td>
  </tr>
  <tr>
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Non-accelerated&nbsp;filer&nbsp;[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;(Do&nbsp;not&nbsp;check&nbsp;if&nbsp;a&nbsp;smaller&nbsp;reporting&nbsp;company)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div>
    </td>
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Smaller
        reporting company [&nbsp;&nbsp;&nbsp;]</font></div>
    </td>
  </tr>
</table>
<p><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
  by check mark whether the registrant is a shell company (as defined in Rule
  12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]&nbsp;Yes
  &nbsp;[X]&nbsp;No</font></p>
<p><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate
  the number of shares outstanding of each of the issuer&#146;s classes of common stock,
  as of the latest practicable date.<br>
  <b>Common Stock, $0.01 Par Value - 4,660,083 shares outstanding as of July 18,
  2008</b><br>
  <br>
</font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<a href="#TOC"></a><a name="TOC"></a></font>
<p><div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>NVE CORPORATION<br>
  QUARTERLY REPORT ON FORM 10-Q<br>
  TABLE OF CONTENTS</b><br>
  <br>
  <br>
  </font></div>
<table  border="0" cellpadding="0" cellspacing="0">
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;"><a href="#Part1"><b>PART
        I. FINANCIAL INFORMATION</b></a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Item
        1. Financial Statements</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Balance
        Sheets</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#QIncome">Statements
        of Income for the Quarters Ended June 30, 2008 and 2007</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#CashFlows">Statements
        of Cash Flows</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Notes">Notes
        to Financial Statements</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MDA">Item
        2. Management&#8217;s Discussion and Analysis of Financial Condition and
        Results of Operations</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MarketRisk">Item
        3. Quantitative and Qualitative Disclosures About Market Risk</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Controls">Item
        4. Controls and Procedures</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;"><a href="#Part2"><b>PART
        II. OTHER INFORMATION</b></a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Arial, Helvetica, sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font face="Times New Roman, Times, serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Legal">Item
        1. Legal Proceedings</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Risks">Item
        1A. Risk Factors</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Arial, Helvetica, sans-serif" size="2">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Exhibits">Item
        6. Exhibits</a></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<a href="#Signatures"><b>SIGNATURES</b></a></font></div>
    </td>
  </tr>
</table>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><br>
2<br>
</font>
</div>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><a href="#TOC"><b>Table of
Contents</b></a><a name="Part1"></a></font>
<p align="center"><b><font style="font-size: 10pt; font-family: Times New Roman;">PART
  I--FINANCIAL INFORMATION</font></b>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b>Item 1. Financial Statements.</b></font>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>NVE
        CORPORATION<br>
        BALANCE SHEETS</b><br><br>
        <br>
        </font></div>

<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td colspan="2"></td>
    <td style="border-bottom: thin solid black;" colspan="3">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>(Unaudited)<br>
        June 30, 2008</b></font></div>
    </td>
    <td width="2%"></td>
    <td style="border-bottom: thin solid black;" valign="bottom" colspan="3">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>March
        31, 2008*</b></font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">ASSETS</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9"> <font style="font-size: 10pt; font-family: Times New Roman;">Current
      assets</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Cash
        and cash equivalents&nbsp;</font></div>
    </td>
    <td width="2%" bgcolor="#ccdaef"></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,838,391</font></div>
    </td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,885,867</font></div>
    </td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Marketable
        securities, short term</font></div>
    </td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">795,778</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">795,728</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef" colspan="9">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Accounts
        receivable, net of allowance for</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;uncollectible
        accounts of $15,000</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,051,301</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">3,226,027</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Inventories&nbsp;</font></div>
    </td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,532,476</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,456,804</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Deferred
        tax assets&nbsp;</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">633,406</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">453,405</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Prepaid
        expenses and other assets&nbsp;</font></div>
    </td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">585,227</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">529,616</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Total
      current assets</font></td>
    <td bgcolor="#ccdaef"></td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">8,436,579</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">9,347,447</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9"> <font style="font-size: 10pt; font-family: Times New Roman;">Fixed
      assets</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Machinery
        and equipment&nbsp;</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,206,786</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,205,288</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Leasehold
        improvements</font></div>
    </td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">436,794</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">436,794</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,643,580</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,642,082</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Less
        accumulated depreciation&nbsp;</font></div>
    </td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,349,535</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,276,680</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Net
      fixed assets</font></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,294,045</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,365,402</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Marketable
      securities, long term</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">25,522,348</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">22,055,279</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Total
      assets</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: medium double black;" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">35,252,972</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: medium double black;" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">32,768,128</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">LIABILITIES
      AND SHAREHOLDERS&#8217; EQUITY</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9"> <font style="font-size: 10pt; font-family: Times New Roman;">Current
      liabilities</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Accounts
        payable&nbsp;</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">350,521</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">434,808</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Accrued
        payroll and other&nbsp;</font></div>
    </td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,157,714</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">632,338</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Deferred
        revenue&nbsp;</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">166,667</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">187,500</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Total
        current liabilities</font></div>
    </td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,674,902</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,254,646</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="9"> <font style="font-size: 10pt; font-family: Times New Roman;">Shareholders&#8217;
      equity</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Common
        stock&nbsp;</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">46,601</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">46,387</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Additional
        paid-in capital</font></div>
    </td>
    <td></td>
    <td width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">18,993,596</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td width="1%"></td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">18,539,538</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Accumulated
        other comprehensive (loss) income</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;"> (189,142</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">103,158</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Retained
        earnings&nbsp;</font></div>
    </td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">14,727,015</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">12,824,399</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Total
      shareholders&#8217; equity</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">33,578,070</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">31,513,482</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Total
      liabilities and shareholders&#8217; equity</font></td>
    <td></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">35,252,972</font></div>
    </td>
    <td style="border-bottom: medium double black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">32,768,128</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
</table>
    <p><font style="font-size: 10pt; font-family: Times New Roman;">*The March
  31, 2008 Balance Sheet is derived from the audited financial statements contained
  in our Annual Report on Form 10-K for the fiscal year ended March 31, 2008.</font>
<p align="center"> <font style="font-size: 10pt; font-family: Times New Roman;">See
  accompanying notes.<br>
  <br></font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">3</font><br>
</div>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font><a name="QIncome"></a>
<p align="center">
  <font style="font-size: 10pt; font-family: Times New Roman;"><b>NVE CORPORATION<br>
  STATEMENTS OF INCOME<br>
  (Unaudited)</b><br>
<br>
  </font>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td rowspan="2"></td>
    <td colspan="7" style="border-bottom: thin solid black;" valign="bottom" width="41%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<b>Quarter
        Ended June 30</b></font></div>
    </td>
  </tr>
  <tr>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2008</b></font></div>
    </td>
    <td width="2%"></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2007</b></font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Revenue</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Product
        sales</font></div>
    </td>
    <td valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,547,322</font></div>
    </td>
    <td valign="bottom" width="1%"></td>
    <td></td>
    <td valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,269,100</font></div>
    </td>
    <td valign="bottom" width="1%"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Contract
        research and development</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">316,464</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">440,183</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Total
      revenue</font></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,863,786</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,709,283</font></div>
    </td>
    <td></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Cost
      of sales</font></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,407,432</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,442,968</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Gross
      profit</font></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">3,456,354</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">3,266,315</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Expenses</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Selling,
        general, and administrative</font></div>
    </td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">529,484</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">563,743</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Research
        and development</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">386,032</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">507,637</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Total
      expenses</font></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">915,516</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,071,380</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Income
      from operations</font></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,540,838</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,194,935</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Interest
      income</font></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">254,435</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">224,521</font></div>
    </td>
    <td valign="bottom"> </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">Other
      income</font></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">3,400</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">-</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Income
      before taxes</font></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,798,673</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,419,456</font></div>
    </td>
    <td></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Provision
      for income taxes</font></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">896,057</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">832,121</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Net
      income</font></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,902,616</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,587,335</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Net
      income per share &#8211; basic</font></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">0.41</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">0.34</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Net
      income per share &#8211; diluted</font></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">0.40</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">0.33</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Weighted
      average shares outstanding</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Basic</font></div>
    </td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,643,402</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td valign="bottom" width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,630,570</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Diluted</font></div>
    </td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,788,460</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,809,915</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
</table>
<p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">See accompanying notes.<br><br></font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">4<br></font>
</div>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font><a name="CashFlows"></a>
<p align="center">
  <font style="font-size: 10pt; font-family: Times New Roman;"><b>NVE CORPORATION<br>
  STATEMENTS OF CASH FLOWS<br>
  (Unaudited)</b><br><br>
  </font>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td rowspan="2"></td>
    <td colspan="7" style="border-bottom: thin solid black;" valign="bottom">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<b>Quarter
        Ended June 30</b></font></div>
    </td>
  </tr>
  <tr>
    <td style="border-bottom: thin solid black;" colspan="3">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2008</b></font></div>
    </td>
    <td width="1%"></td>
    <td style="border-bottom: thin solid black;" colspan="3">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2007</b></font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">OPERATING
        ACTIVITIES</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Net income</font></div>
    </td>
    <td valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,902,616</font></div>
    </td>
    <td valign="bottom" width="1%"></td>
    <td width="2%"></td>
    <td valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,587,335</font></div>
    </td>
    <td valign="bottom" width="1%"></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Adjustments
        to reconcile net income to net cash</font></div>
      <div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">provided
        by operating activities:</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Depreciation
        and amortization</font></div>
    </td>
    <td width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">164,973</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">111,719</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Stock-based
        compensation</font></div>
    </td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,598</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">7,292</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Excess
        tax benefits&nbsp;</font></div>
    </td>
    <td width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(236,524</font></div>
    </td>
    <td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">-</font></div>
    </td>
    <td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Gain
        on sale of fixed assets&nbsp;</font></div>
    </td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(3,400</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">-</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Deferred
        income taxes</font></div>
    </td>
    <td width="1%"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">222,963</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">829,841</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8" bgcolor="#ccdaef">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Changes
        in operating assets and liabilities:</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Accounts
        receivable</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,174,726</font></div>
    </td>
    <td></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(290,014</font></div>
    </td>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Inventories</font></div>
    </td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(75,672</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(55,642</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Prepaid
        expenses and other assets</font></div>
    </td>
    <td width="1%" height="16"></td>
    <td align="right" valign="bottom" height="16">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(55,611</font></div>
    </td>
    <td valign="bottom" height="16">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
    <td height="16"></td>
    <td height="16"></td>
    <td align="right" valign="bottom" height="16">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(34,968</font></div>
    </td>
    <td valign="bottom" height="16">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Accounts
        payable and accrued expenses</font></div>
    </td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">441,089</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(284,401</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Deferred
        revenue</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(20,833</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,742</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Net cash
        provided by operating activities</font></div>
    </td>
    <td width="1%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">3,519,925</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,876,904</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td colspan="8"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">INVESTING
        ACTIVITIES</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" colspan="2">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Purchases
        of fixed assets</font></div>
    </td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(40,784</font></div>
    </td>
    <td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(225,278</font></div>
    </td>
    <td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Proceeds
        from sale of fixed assets</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">3,400</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"> </td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">-</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Purchases
        of marketable securities</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(5,051,607</font></div>
    </td>
    <td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(1,512,600</font></div>
    </td>
    <td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Proceeds
        from maturities and sales of marketable securities</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,072,916</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">354,066</font></div>
    </td>
    <td style="border-bottom: thin solid black;" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Net cash
        used in investing activities</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(4,016,075</font></div>
    </td>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(1,383,812</font></div>
    </td>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
  </tr>
  <tr>
    <td colspan="8" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">FINANCING
        ACTIVITIES</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Net proceeds
        from sale of common stock</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">212,150</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">41,625</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Excess
        tax benefits</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">236,524</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">-</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Net cash
        provided by financing activities</font></div>
    </td>
    <td bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">448,674</font></div>
    </td>
    <td bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">41,625</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(Decrease)
        increase in cash and cash equivalents</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(47,476</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">534,717</font></div>
    </td>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Cash and
        cash equivalents at beginning of quarter</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,885,867</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">397,423</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="8" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Cash and
        cash equivalents at end of quarter</font></div>
    </td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,838,391</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">932,140</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="8" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign="bottom" colspan="8">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Supplemental
        disclosures of cash flow information:</font></div>
    </td>
  </tr>
  <tr bgcolor="#ccdaef">
    <td valign="bottom" colspan="8">
      <div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Cash
        paid during the quarter for:</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Income
        taxes</font></div>
    </td>
    <td valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">-</font></div>
    </td>
    <td valign="bottom"></td>
    <td></td>
    <td valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">79,313</font></div>
    </td>
    <td valign="bottom"></td>
  </tr>
</table>
<p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">See accompanying notes.</font><br>
  <font style="font-size: 10pt; font-family: Times New Roman;"><br>
  5<br></font>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font><a name="Notes"></a>
<p>
<font style="font-size: 10pt; font-family: Times New Roman;">
<div align="center"><b>NVE CORPORATION<br>
  NOTES TO FINANCIAL STATEMENTS<br>
  (Unaudited)</b><br>
  <br>
</div>
<b>NOTE 1. DESCRIPTION OF BUSINESS</b> <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We develop and sell devices that use spintronics,
a nanotechnology that relies on electron spin rather than electron charge to acquire,
store, and transmit information. <br>
<br>
<b>NOTE 2. INTERIM FINANCIAL INFORMATION</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying unaudited financial statements
of NVE Corporation are consistent with accounting principles generally accepted
in the United States and reporting with Securities and Exchange Commission rules
and regulations. In the opinion of management, these financial statements reflect
all adjustments, consisting only of normal and recurring adjustments, necessary
for a fair presentation of the financial statements. Although we believe that
the disclosures are adequate to make the information presented not misleading,
it is suggested that these unaudited financial statements be read in conjunction
with the audited financial statements and the notes included in our latest annual
financial statements included in our Annual Report on Form 10-K for the fiscal
year ended March 31, 2008. The results of operations for the quarter ended June
30, 2008 are not necessarily indicative of the results that may be expected for
the full fiscal year ending March 31, 2009.<br>
<br>
<b>NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September 2006, the Financial Accounting Standards
Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No.&nbsp;157,
<i>Fair Value Measurements</i>. SFAS No.&nbsp;157 establishes a framework for
measuring fair value, clarifies the definition of fair value, and requires additional
disclosures about fair-value measurements. SFAS No.&nbsp;157 applies only to fair
value measurements that are already required or permitted by other accounting
standards (except for measurements of share-based payments) and is expected to
increase the consistency of those measurements. SFAS No.&nbsp;157, as issued,
is effective for fiscal years beginning after November&nbsp;15, 2007. In February
2008, the FASB issued FASB Staff Position (FSP) SFAS No.&nbsp;157-2, Effective
Date of FASB Statement No.&nbsp;157 (FSP SFAS No.&nbsp;157-2) that deferred the
effective date of SFAS No.&nbsp;157 for one year for certain nonfinancial assets
and nonfinancial liabilities. Accordingly, we adopted certain parts of SFAS No.&nbsp;157
at the beginning of fiscal year 2009 and we will adopt the remaining parts of
SFAS No.&nbsp;157 at the beginning of fiscal year 2010. Partial adoption of SFAS
No.&nbsp;157 in fiscal 2009 did not result in a material impact to our financial
statements. We are evaluating the impact of the remaining parts of SFAS No.&nbsp;157
that will be adopted in fiscal 2010.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2008, the FASB <b></b> issued SFAS No.&nbsp;162,
<i>The Hierarchy of Generally Accepted Accounting Principles</i>. The new standard
is intended to improve financial reporting by identifying a consistent framework,
or hierarchy, for selecting accounting principles to be used in preparing financial
statements that are presented in conformity with U.S. generally accepted accounting
principles for nongovernmental entities. SFAS No.&nbsp;162 is effective 60 days
following the SEC&#146;s approval of the Public Company Accounting Oversight Board
Auditing amendments to AU Section&nbsp;411, <i>The Meaning of Present Fairly in
Conformity with Generally Accepted Accounting Principles</i>. We are evaluating
the impact of adoption of SFAS No.&nbsp;162 and we do not currently expect adoption
to have a material impact on our results of operations, cash flows or financial
position.<br>
<br>
</font>
<div align="center">
  <font style="font-size: 10pt; font-family: Times New Roman;">6<br></font>
</div>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b>NOTE 4. NET
  INCOME PER SHARE</b> <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculate our net income per share in accordance
  with FASB SFAS No. 128, <i>Earnings per Share</i>. Basic earnings per share
  are computed based on the weighted-average number of common shares issued and
  outstanding during each period. Diluted net income per share amounts assume
  conversion, exercise or issuance of all potential common stock instruments (stock
  options and warrants). Stock options and warrants totaling 21,000 for the quarter
  ended June&nbsp;30, 2008 and 13,000 for the quarter ended June&nbsp;30, 2007
  were not included in the computation of diluted earnings per share because the
  exercise prices were greater than the market price of the common stock. The
  following table reflects the components of common shares outstanding in accordance
  with SFAS No. 128:<br>
  <br>
  </font>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td rowspan="2"></td>
    <td colspan="3" style="border-bottom: thin solid black;" align="center" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;"><b>Quarter
      Ended June 30</b></font></td>
  </tr>
  <tr>
    <td style="border-bottom: thin solid black;" align="center" valign="bottom" width="11%">
      <font style="font-size: 10pt; font-family: Times New Roman;"><b>2008</b></font></td>
    <td></td>
    <td style="border-bottom: thin solid black;" align="center" valign="bottom" width="11%">
      <font style="font-size: 10pt; font-family: Times New Roman;"><b>2007</b></font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Weighted
        average common shares outstanding &#8211; basic</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">4,643,402</font>
    </td>
    <td align="left" valign="bottom" width="2%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,630,570</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" colspan="4">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Effect
        of dilutive securities:</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;" align="left"><font style="font-size: 10pt; font-family: Times New Roman;">Stock
        options</font></div>
    </td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">139,839</font></div>
    </td>
    <td align="left" valign="bottom" width="2%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">173,846</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom">
      <div style="margin-left: 9pt;" align="left"><font style="font-size: 10pt; font-family: Times New Roman;">Warrants</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,219</font></div>
    </td>
    <td align="left" valign="bottom" width="2%"></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,499</font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Shares
        used in computing net income per share &#8211; diluted</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <font style="font-size: 10pt; font-family: Times New Roman;">4,788,460</font>
    </td>
    <td align="left" valign="bottom" width="2%" bgcolor="#ccdaef"></td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,809,915</font></div>
    </td>
  </tr>
</table>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b>NOTE 5. MARKETABLE
  SECURITIES</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of marketable securities
  were $1,072,916 in the quarter ended June&nbsp;30, 2008 and $354,066 in the
  quarter ended June&nbsp;30, 2007. There were no gross gains or gross losses
  on the maturities of those securities in either quarter. We use a specific-identification
  cost basis to determine gains and losses.<br>
  <br>
  <b>NOTE 6. COMPREHENSIVE INCOME</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of comprehensive income are as
  follows:</font>
<p>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td rowspan="2"></td>
    <td colspan="7" style="border-bottom: thin solid black;" valign="bottom">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<b>Quarter
        Ended June 30</b></font></div>
    </td>
  </tr>
  <tr>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2008</b></font></div>
    </td>
    <td width="2%"></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2007</b></font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Net
      income</font></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,902,616</font></div>
    </td>
    <td bgcolor="#ccdaef" width="1%"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,587,335</font></div>
    </td>
    <td bgcolor="#ccdaef" width="1%"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font style="font-size: 10pt; font-family: Times New Roman;">Unrealized
      loss from marketable securities</font></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(292,300</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
    <td></td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(89,189</font></div>
    </td>
    <td style="border-bottom: thin solid black;"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Comprehensive
      income</font></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,610,316</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: medium double black;" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,498,146</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
</table>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><br>
  7<br></font>
</div><hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font>
<p>
<font style="font-size: 10pt; font-family: Times New Roman;"><b>NOTE 7. INVENTORIES</b>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories consisted of the following:<br>
<br>
</font>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center"><b><font style="font-size: 10pt; font-family: Times New Roman;">June
      30<br>
      2008</font></b></td>
    <td><b></b></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center"><b><font style="font-size: 10pt; font-family: Times New Roman;">March
      31<br>
      2008</font></b></td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Raw materials</font></div>
    </td>
    <td align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">714,745</font></div>
    </td>
    <td align="left" valign="bottom" width="1%" bgcolor="#ccdaef"></td>
    <td width="2%" bgcolor="#ccdaef"></td>
    <td align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">741,361</font></div>
    </td>
    <td width="1%" bgcolor="#ccdaef"></td>
  </tr>
  <tr>
    <td align="left" valign="bottom"> <font style="font-size: 10pt; font-family: Times New Roman;">Work-in-process</font></td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,287,863</font></div>
    </td>
    <td></td>
    <td></td>
    <td></td>
    <td align="right" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">1,184,062</font></td>
    <td></td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Finished
      goods</font></td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <font style="font-size: 10pt; font-family: Times New Roman;">829,868</font></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <font style="font-size: 10pt; font-family: Times New Roman;">811,381</font></td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td align="left" valign="bottom"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,832,476</font></div>
    </td>
    <td></td>
    <td></td>
    <td align="left" valign="bottom"></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,736,804</font></div>
    </td>
    <td></td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Less inventory
        reserve</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(300,000</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(280,000</font></div>
    </td>
    <td style="border-bottom: thin solid black;" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Total
        inventories</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,532,476</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td></td>
    <td style="border-bottom: medium double black;" align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,456,804</font></div>
    </td>
    <td style="border-bottom: medium double black;"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
</table>
<font style="font-size: 10pt; font-family: Times New Roman;"><br>
<b>NOTE 8. STOCK-BASED
COMPENSATION</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation recognized under SFAS No.
123 (revised 2004), <i>Share-Based Payment</i>, was $5,598 for the first quarter
of fiscal 2009 and $7,292 for the first quarter of fiscal 2008. We calculate the
share-based compensation expense on a straight-line basis over the vesting periods
of the related share-based awards.<br>
<br>
<b>NOTE 9. INCOME TAXES</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes reflect the net tax effects
of temporary differences between the carrying amount of assets and liabilities
for financial reporting purposes and the amounts used for income tax purposes.
Tax provisions of $236,524 for the quarter ended June&nbsp;30, 2008 were credited
to &#147;Additional paid-in capital.&#148;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June&nbsp;30, 2008 we had no unrecognized tax
benefits. We do not believe unrecognized tax benefits will significantly change
within twelve months of the reporting date. We recognize interest and penalties
related to income tax matters in income tax expense. As of June&nbsp;30, 2008 we had
no accrued interest related to uncertain tax positions. The years 2004 through
2007 remain open to examination by the major taxing jurisdictions to which we
are subject.<br>
<br>
<b>NOTE 10. FAIR VALUE MEASUREMENTS</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have marketable securities that we record at
fair value based on quoted prices in an active market. The marketable securities
consist of publicly-traded securities that are classified as available-for-sale
securities. On the balance sheet, available-for-sale securities are classified
as &#147;Marketable securities, short term&#148; and &#147;Marketable securities,
long term.&#148; The fair value of our available-for-sale securities was $26,318,126
at June&nbsp;30, 2008 and $22,851,007 at March&nbsp;31, 2008.<br>
<br>
<div align="center">8</div>
</font>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a><a name="MDA"></a></b></font>
<p>
<p> <font style="font-size: 10pt; font-family: Times New Roman;"><b>Item 2. Management&#146;s
  Discussion and Analysis of Financial Condition and Results of Operations.<br>
  <br>
  Forward-looking statements</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of the statements made in this Report or
  in the documents incorporated by reference in this Report and in other materials
  filed or to be filed by us with the Securities and Exchange Commission (&#147;SEC&#148;)
  as well as information included in verbal or written statements made by us constitute
  forward-looking statements within the meaning of the Private Securities Litigation
  Reform Act of 1995. These statements are subject to the safe harbor provisions
  of the reform act. Forward-looking statements may be identified by the use of
  the terminology such as may, will, expect, anticipate, intend, believe, estimate,
  should, or continue, or the negatives of these terms or other variations on
  these words or comparable terminology. To the extent that this Report contains
  forward-looking statements regarding the financial condition, operating results,
  business prospects or any other aspect of NVE, you should be aware that our
  actual financial condition, operating results and business performance may differ
  materially from that projected or estimated by us in the forward-looking statements.
  We have attempted to identify, in context, some of the factors that we currently
  believe may cause actual future experience and results to differ from their
  current expectations. These differences may be caused by a variety of factors,
  including but not limited to adverse economic conditions, competition including
  entry of new competitors, progress in research and development activities by
  us and others, variations in costs that are beyond our control, adverse legal
  proceedings, lower sales, failure of suppliers to meet our requirements, failure
  to obtain new customers, inability to carry out marketing and sales plans, inability
  to meet customer technical requirements, inability to consummate license agreements,
  ineligibility for SBIR awards, loss of key executives, and other specific risks
  that may be alluded to in this Report or in the documents incorporated by reference
  in this Report. Further information regarding our risks and uncertainties are
  contained in Part I, Item 1A &#147;Risk Factors&#148; of our Annual Report on
  Form&nbsp;10-K for the year ended March&nbsp;31,&nbsp;2008 as updated in Part
  II, Item 1A &#147;Risk Factors&#148;of this Quarterly Report on Form 10-Q.<br>
  <br>
  <b>General</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NVE Corporation, referred to as NVE, we, us, or
  our, develops and sells devices that use spintronics, a nanotechnology that
  relies on electron spin rather than electron charge to acquire, store and transmit
  information. We manufacture high-performance spintronic products including sensors
  and couplers that are used to acquire and transmit data. We have also licensed
  our spintronic magnetoresistive random access memory technology, commonly known
  as MRAM.<br>
  <br>
  <b>Critical Accounting Policies</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A description of our critical accounting policies
  is provided in Management&#146;s Discussion and Analysis of Financial Condition
  and Results of Operations in our Annual Report on Form 10-K for the year ended
  March&nbsp;31, 2008. At June&nbsp;30, 2008 our critical accounting policies
  and estimates continued to include research and development contract percentage
  of completion estimation, product warranty estimation, inventory valuation,
  allowance for doubtful accounts estimation, and deferred tax assets estimation.<br>
  <br>
  </font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">
  9<br></font>
</div>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table of
Contents</a></b></font><p><font style="font-size: 10pt; font-family: Times New Roman;"><b>Quarter ended June
  30, 2008 compared to quarter ended June 30, 2007</b><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  table shown below summarizes the percentage of revenue and quarter-to-quarter
  changes for various items:</font><br>
  <br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td align="left" valign="bottom" rowspan="2"></td>
    <td style="border-bottom: thin solid black;" align="center" valign="bottom" colspan="5"><font style="font-size: 10pt; font-family: Times New Roman;"><b>Percentage
      of Revenue<br>
      Quarter Ended June 30</b></font></td>
    <td align="left" valign="bottom" rowspan="2"></td>
    <td style="border-bottom: thin solid black;" align="center" valign="bottom" colspan="2" rowspan="2"><font style="font-size: 10pt; font-family: Times New Roman;"><b>Quarter-<br>
      to-Quarter<br>
      Change</b></font></td>
  </tr>
  <tr>
    <td style="border-bottom: thin solid black;" align="center" valign="bottom" colspan="2"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2008</b></font></td>
    <td align="left" valign="bottom"></td>
    <td style="border-bottom: thin solid black;"align="center" valign="bottom" colspan="2"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2007</b></font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef" colspan="9"><font style="font-size: 10pt; font-family: Times New Roman;">Revenue</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div style="margin-left: 9pt;" align="left"><font style="font-size: 10pt; font-family: Times New Roman;">Product
        sales</font></div>
    </td>
    <td align="right" valign="bottom" width="9%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">93.5</font></div>
    </td>
    <td align="left" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td align="left" valign="bottom" width="2%"></td>
    <td align="right" valign="bottom" width="9%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">90.7</font></div>
    </td>
    <td align="left" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td align="left" valign="bottom" width="2%"></td>
    <td align="right" valign="bottom" width="9%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">6.5</font></div>
    </td>
    <td align="left" valign="bottom" width="1%">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;" align="left"><font style="font-size: 10pt; font-family: Times New Roman;">Contract&nbsp;research&nbsp;and&nbsp;development</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">6.5</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">9.3</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(28.1</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">)%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Total
        revenue</font></div>
    </td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">100.0</font></div>
    </td>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">100.0</font></div>
    </td>
    <td align="left" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">3.3</font></div>
    </td>
    <td align="left" valign="bottom">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Cost of
        sales</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">28.9</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">30.6</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(2.5</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">)%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Gross
        profit</font></div>
    </td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">71.1</font></div>
    </td>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">69.4</font></div>
    </td>
    <td align="left" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5.8</font></div>
    </td>
    <td align="left" valign="bottom">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef" colspan="9"><font style="font-size: 10pt; font-family: Times New Roman;">Expenses</font></td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div style="margin-left: 9pt;" align="left"><font style="font-size: 10pt; font-family: Times New Roman;">Selling,
        general, and administrative</font></div>
    </td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">10.9</font></div>
    </td>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">12.0</font></div>
    </td>
    <td valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(6.1</font></div>
    </td>
    <td align="left" valign="bottom">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">)%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 9pt;" align="left"><font style="font-size: 10pt; font-family: Times New Roman;">Research&nbsp;and&nbsp;development</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">8.0</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">10.8</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(24.0</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">)%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Total
        expenses</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">18.9</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">22.8</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">(14.5</font></div>
    </td>
    <td align="left" valign="bottom">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">)%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Income
        from operations</font></div>
    </td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">52.2</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td align="left" valign="bottom" width="2%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">46.6</font></div>
    </td>
    <td align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">15.8</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Net interest
        and other income</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5.3</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">4.8</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">14.8</font></div>
    </td>
    <td align="left" valign="bottom">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Income
        before taxes</font></div>
    </td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">57.5</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td align="left" valign="bottom" width="2%" bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">51.4</font></div>
    </td>
    <td align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">15.7</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Provision for income taxes</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">18.4</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">17.7</font></div>
    </td>
    <td style="border-bottom: thin solid black;" align="left" valign="bottom" width="1%">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td></td>
    <td align="right" valign="bottom">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">7.7</font></div>
    </td>
    <td align="left" valign="bottom">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Net income</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">39.1</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td align="left" valign="bottom" width="2%" bgcolor="#ccdaef"></td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">33.7</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
    <td bgcolor="#ccdaef"></td>
    <td align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">19.9</font></div>
    </td>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="right"><font style="font-size: 10pt; font-family: Times New Roman;">%</font></div>
    </td>
  </tr>
</table>
<font style="font-size: 10pt; font-family: Times New Roman;"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue for the quarter ended June 30, 2008
(the first quarter of fiscal 2009) increased 3% to $4,863,786 compared to $4,709,283
for the quarter ended June&nbsp;30, 2007 (the first quarter of fiscal 2008). The increase
was due to a 7% increase in product sales partially offset by a 28% decrease in
research and development revenue. The increase in product sales was due to the
addition of new customers and increased purchases by existing customers. The decrease
in research and development revenue was due to a decrease in U.S. Government contract
awards to us.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit margin increased to 71% of revenue
for the first quarter of fiscal 2009 compared to 69% for the first quarter of
fiscal 2008. The increase was primarily due to a more favorable revenue mix consisting
of a higher percentage of product sales and increased gross margins on product
sales.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and administrative expense for
the first quarter of fiscal 2009 decreased 6% to $529,484 compared to $563,743
for the first quarter of fiscal 2008. The decrease was primarily due to decreased
audit and legal expenses.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expense decreased 24% for
the first quarter of fiscal 2009 compared to the first quarter of fiscal 2008
due to the completion of certain research and development projects. This decrease
may not be representative of future expense trends. Our research and development
expense can fluctuate significantly depending on staffing, project requirements,
and contract research and development obligations.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest and other income increased 15% to $257,835
for the first quarter of fiscal 2009 compared to $224,521 for the first quarter
of fiscal 2008. The increase was due to an increase in interest-bearing marketable
securities.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provision for income taxes was $896,057 or 32%
of income before taxes for the first quarter of fiscal 2009 compared to $832,121
or 34% of income before taxes for the first quarter of fiscal 2008. The decrease
in the effective tax rate may not be representative of future trends because the
effective tax rate can fluctuate from quarter to quarter due to a number of factors,
some of which are outside our control.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 20% increase in net income in the first quarter
of fiscal 2009 compared to the prior-year quarter was primarily due to increases
in product sales and interest income, and a decrease in research and development
expense.<br>
<br>
</font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">10<br>
  </font></div>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b>Liquidity and
  capital resources</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June 30,&nbsp;2008 we had $28,156,517 in cash
  plus short-term and long-term marketable securities compared to $24,736,874
  at March&nbsp;31,&nbsp;2008. Our entire portfolio of short-term and long-term
  marketable securities is classified as available for sale. The increase in cash
  plus marketable securities in the first quarter of fiscal 2009 was primarily
  due to $3,519,925 in net cash provided by operating activities.
  <br><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
  receivable decreased $1,174,726 due to collection of receivables related to
  revenue late in the fiscal year ended March&nbsp;31,&nbsp;2008.<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of fixed assets decreased to $40,784
  for the first quarter of fiscal 2009 from $225,278 for the first quarter of
  fiscal 2008. The purchases during the first quarter of fiscal 2008 were primarily
  for capital equipment to increase our production capacity. We financed the purchases
  with cash provided by operating activities.<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We currently believe our working capital is adequate for our needs at least for
  the next 12 months.<br>
  <br>
  </font>
<p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">11<br>
</font>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font><a name="MarketRisk"></a>
<p> <font style="font-size: 10pt; font-family: Times New Roman;"><b>Item 3. Quantitative
  and Qualitative Disclosures About Market Risk.</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The primary objective of our investment activities
  is to preserve principal while at the same time maximizing after-tax yields
  without significantly increasing risk. To achieve this objective, we maintain
  our portfolio of cash equivalents and marketable securities in a variety of
  securities including government agency obligations, municipal obligations, and
  corporate obligations, and money market funds. Short-term and long-term marketable
  securities are generally classified as available-for-sale and consequently are
  recorded on the balance sheet at fair value with unrealized gains or losses
  reported as a separate component of accumulated other comprehensive income (loss),
  net of estimated tax. Marketable securities as of June&nbsp;30, 2008 had remaining
  maturities between three weeks and 57 months. Our short-term and long-term marketable
  securities had a fair market value of $26,318,126 at June&nbsp;30, 2008, representing
  approximately 75% of our total assets. We have not used derivative financial
  instruments in our investment portfolio.<br>
  <br>
  <a name="Controls"></a><b>Item 4. Controls and Procedures.</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management, with the participation of the Chief
  Executive Officer and Chief Financial Officer, has performed an evaluation of
  our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
  of the Securities Exchange Act) as of the end of the period covered by this
  report. This evaluation included consideration of the controls, processes and
  procedures that are designed to ensure that information required to be disclosed
  by us in the reports we file under the Exchange Act is recorded, processed,
  summarized and reported within the time periods specified in the SEC&#146;s
  rules and forms and that such information is accumulated and communicated to
  our management, including or Chief Executive Officer and Chief Financial Officer,
  as appropriate to allow timely decisions regarding required disclosure. Based
  on such evaluation, our Chief Executive Officer and Chief Financial Officer
  concluded that, as of the end of the period covered by this report, our disclosure
  controls and procedures were effective.<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the quarter ended June 30, 2008, there
  was no change in our internal control over financial reporting that materially
  affected, or is reasonably likely to materially affect, our internal control
  over financial reporting.<br>
<br>
</font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">12<br>
  </font></div>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table of Contents</a></b></font><a name="Part2"></a>
<p>
<font style="font-size: 10pt; font-family: Times New Roman;">
<div align="center"><b>PART II--OTHER INFORMATION</b></div>
</font>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><a name="Legal"></a><b>Item
  1. Legal Proceedings.</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February&nbsp;10, 2006 a lawsuit was filed
  against NVE and certain of its current and former executive officers and directors
  in the U.S. District Court for the District of Minnesota by an individual shareholder
  seeking to represent a class of purchasers of our common stock during the period
  from May&nbsp;22, 2003 through February&nbsp;11, 2005. On March&nbsp;6 and March&nbsp;7,
  2006, two additional lawsuits were filed in the same court by two additional
  NVE shareholders, with the same proposed class period, purporting to represent
  the same class. These lawsuits were subsequently consolidated into a single
  case and a consolidated complaint was filed. The consolidated complaint generally
  alleged that the defendants violated the Securities Exchange Act of 1934 by
  issuing material misrepresentations concerning NVE&#146;s projected revenues
  and product technology, which artificially inflated the market price of our
  common stock. Two related actions brought by individual shareholders who seek
  to represent NVE derivatively were filed in Hennepin County District Court.
  On July&nbsp;3, 2007 the U.S. District Court granted our motion to dismiss
  the consolidated lawsuits filed in U.S. District Court, with prejudice, after
  finding that the consolidated complaint failed to adequately plead the plaintiffs&#146;
  claims. On May&nbsp;30, 2008, the U.S. Court of Appeals for the Eighth Circuit affirmed
  the U.S. District Court&#146;s dismissal.<br>
  <br>
  <a name="Risks"></a><b>Item 1A. Risk Factors.</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no material changes from the risk
  factors disclosed in our Annual Report on Form 10-K for the fiscal year ended
  March&nbsp;31, 2008, except that the risk factor titled &#147;We are presently
  involved in class action litigation&#148; is hereby deleted. The risk factor
  is deleted because the U.S. Court of Appeals for the Eighth Circuit affirmed
  the U.S. District Court&#146;s dismissal of the consolidated lawsuits, and we
  do not expect litigation, if any, regarding related actions filed in Hennepin
  County District Court will have a material adverse impact on our future results
  of operation and financial condition.<br>
  <br>
  </font>
<p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">13<br></font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font><a name="Exhibits"></a>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b>Item 6. Exhibits.</b></font><br>
  <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>Exhibit
        #</u></b></font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
    <td width="88%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>Description</u></b></font></div>
    </td>
  </tr>
  <tr>
    <td colspan="3"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">31.1</font></div>
    </td>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
    </td>
    <td>
      <div align="left"><font style="font-size: 10pt; font-family: Times New Roman;"> Certification
        by Daniel A. Baker pursuant to Rule 13a-14(a)/15d-14(a). </font></div>
    </td>
  </tr>
  <tr>
    <td colspan="3"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">31.2</font></div>
    </td>
    <td> <font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font> </td>
    <td valign="top">
      <div align="left"><font style="font-size: 10pt; font-family: Times New Roman;"> Certification
        by Curt A. Reynders pursuant to Rule 13a-14(a)/15d-14(a).</font></div>
    </td>
  </tr>
  <tr>
    <td colspan="3"> <font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font>
    </td>
  </tr>
  <tr>
    <td valign="top">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">32</font></div>
    </td>
    <td> </td>
    <td valign="top">
      <div align="left"><font style="font-size: 10pt; font-family: Times New Roman;">Certification
        by Daniel A. Baker and Curt A. Reynders pursuant to 18 U.S.C. Section
        1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
        2002.</font></div>
    </td>
  </tr>
</table>
<p>&nbsp;
<p>&nbsp;
<p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">14<br></font>
<hr><br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font><a name="Signatures"></a>
<p><font style="font-size: 10pt; font-family: Times New Roman;">
<div align="center"><b>SIGNATURES</b></div>
</font>
<p><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.<br><br></font>
<table border="0" cellspacing="0" cellpadding="0" width="100%">
  <tr>
    <td width="25%"></td>
    <td><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>NVE CORPORATION</u></b></font></td>
  </tr>
  <tr>
    <td width="25%"> <font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font>
    </td>
    <td> <font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</font></td>
  </tr>
  <tr>
    <td width="25%"> <font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font>
    </td>
    <td></td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>July
        23, 2008</u></b></font></div>
    </td>
    <td> <font style="font-size: 10pt; font-family: Times New Roman;"><u>/s/ DANIEL A.
      BAKER&nbsp;</u></font></td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">Date</font></div>
    </td>
    <td> <font style="font-size: 10pt; font-family: Times New Roman;"> Daniel A. Baker</font>
    </td>
  </tr>
  <tr>
    <td width="25%"> </td>
    <td><font style="font-size: 10pt; font-family: Times New Roman;">President and Chief
      Executive Officer</font></td>
  </tr>
  <tr>
    <td width="25%"> <font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font>
    </td>
    <td></td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><u>July
        23, 2008</u></b></font></div>
    </td>
    <td>
      <div align="left"><font style="font-size: 10pt; font-family: Times New Roman;"><u>/s/
        CURT A. REYNDERS&nbsp;</u></font></div>
    </td>
  </tr>
  <tr>
    <td width="25%">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">Date</font></div>
    </td>
    <td> <font style="font-size: 10pt; font-family: Times New Roman;">Curt A. Reynders</font></td>
  </tr>
  <tr>
    <td> </td>
    <td><font style="font-size: 10pt; font-family: Times New Roman;">Chief Financial Officer</font></td>
  </tr>
</table>
<p>&nbsp;
<p>&nbsp;
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">15<br>
  </font></div>
<hr>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>ex31-dab.htm
<DESCRIPTION>CERTIFICATION BY DANIEL A. BAKER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>
<html><div style="font-family:Times New Roman;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
    31.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CERTIFICATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I,
    Daniel A. Baker, certify that:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>The registrant&#146;s other certifying officer(s) and I are responsible
    for establishing and maintaining disclosure controls and procedures (as defined
    in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
    reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
    registrant and have:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>Designed such disclosure controls and procedures, or caused such disclosure
    controls and procedures to be designed under our supervision, to ensure that
    material information relating to the registrant, including its consolidated
    subsidiaries, is made known to us by others within those entities, particularly
    during the period in which this report is being prepared;</p>
  <br>
  <p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font><font size="2" face="Times New Roman" style="font-size:10.0pt;">Designed
    such internal control over financial reporting, or caused such internal control
    over financial reporting to be designed under our supervision, to provide
    reasonable assurance regarding the reliability of financial reporting and
    the preparation of financial statements for external purposes in accordance
    with generally accepted accounting principles;&nbsp;</font></p>
  <br>
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>Evaluated the effectiveness of the registrant&#146;s disclosure controls
    and procedures and presented in this report our conclusions about the effectiveness
    of the disclosure controls and procedures, as of the end of the period covered
    by this report based on such evaluation; and</p>
  <br>
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>Disclosed in this report any change in the registrant&#146;s internal
    control over financial reporting that occurred during the registrant&#146;s
    most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in
    the case of an annual report) that has materially affected, or is reasonably
    likely to materially affect, the registrant&#146;s internal control over financial
    reporting; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The registrant&#146;s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing
the equivalent functions):</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial
information; and</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any fraud, whether or not material,
that involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
    July 23, 2008</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td valign="top" style="padding:0in 0in 0in 0in;width:50%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
          DANIEL A. BAKER</font></p>
  </td>
  <td valign="top" style="padding:0in 0in 0in 0in;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Daniel
          A. Baker</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President
          and Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="2" width="100%" noshade color="gray" align="left"></div>

</div>
</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>ex31-car.htm
<DESCRIPTION>CERTIFICATION BY CURT A. REYNDERS PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>
<html><div style="font-family:Times New Roman;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
    31.2</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CERTIFICATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I, Curt A. Reynders, certify that:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>I have reviewed this Quarterly Report on Form 10-Q of NVE Corporation;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this report;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>The registrant&#146;s other certifying officer(s) and I are responsible
    for establishing and maintaining disclosure controls and procedures (as defined
    in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
    reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
    registrant and have:</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>Designed such disclosure controls and procedures, or caused such disclosure
    controls and procedures to be designed under our supervision, to ensure that
    material information relating to the registrant, including its consolidated
    subsidiaries, is made known to us by others within those entities, particularly
    during the period in which this report is being prepared;</p>
  <br>
  <p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font><font size="2" face="Times New Roman" style="font-size:10.0pt;">Designed
    such internal control over financial reporting, or caused such internal control
    over financial reporting to be designed under our supervision, to provide
    reasonable assurance regarding the reliability of financial reporting and
    the preparation of financial statements for external purposes in accordance
    with generally accepted accounting principles;&nbsp;</font></p>
  <br>
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>Evaluated the effectiveness of the registrant&#146;s disclosure controls
    and procedures and presented in this report our conclusions about the effectiveness
    of the disclosure controls and procedures, as of the end of the period covered
    by this report based on such evaluation; and</p>
  <br>
  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>Disclosed in this report any change in the registrant&#146;s internal
    control over financial reporting that occurred during the registrant&#146;s
    most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in
    the case of an annual report) that has materially affected, or is reasonably
    likely to materially affect, the registrant&#146;s internal control over financial
    reporting; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The registrant&#146;s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant&#146;s auditors and the
audit committee of the registrant&#146;s board of directors (or persons performing
the equivalent functions):</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial
information; and</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any fraud, whether or not material,
that involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
    July 23, 2008</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td valign="top" style="padding:0in 0in 0in 0in;width:50%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ CURT A.
  REYNDERS</font></p>
  </td>
  <td valign="top" style="padding:0in 0in 0in 0in;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt A. Reynders</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in 0in 0in 0in;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="45%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:45.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial
  Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="2" width="100%" noshade color="gray" align="left"></div>

</div>
</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>ex32.htm
<DESCRIPTION>CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
<TEXT>
<html>
<div style="font-family:Times New Roman;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
    32</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CERTIFICATION PURSUANT TO SECTION 906</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C.
SECTION 1350)</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned certify pursuant to
18 U.S.C. Section 1350, that to the undersigned&#146;s knowledge:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </font>The accompanying Quarterly Report of NVE Corporation (the &#147;Company&#148;)
    on Form 10-Q for the quarter ended June 30, 2008, fully complies with the
    requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
    and</p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The information contained in the
Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
    July 23, 2008</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
      <td valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
          DANIEL A. BAKER</font></p>
  </td>
      <td valign="top" style="padding:0in 0in 0in 0in;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
      <td colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Daniel A. Baker</font></p>
  </td>
 </tr>
 <tr>
      <td colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and
  Chief Executive Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
      <td valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:25%;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
          CURT A. REYNDERS</font></p>
  </td>
      <td wvalign="top" style="padding:0in 0in 0in 0in;">
        <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Curt A. Reynders</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Financial
  Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A signed original of this written
statement required by Section 906 has been provided to the Company and will be
retained by the Company and furnished to the Securities and Exchange Commission
or its staff upon request.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="2" width="100%" noshade color="gray" align="left"></div>
</div>
</body>
</html>
</TEXT>
</DOCUMENT>
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<TYPE>GRAPHIC
<SEQUENCE>5
<FILENAME>nve-logo.gif
<DESCRIPTION>NVE CORPORATION LOGO
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