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<SEC-DOCUMENT>0000724910-09-000002.txt : 20090121
<SEC-HEADER>0000724910-09-000002.hdr.sgml : 20090121
<ACCEPTANCE-DATETIME>20090121161005
ACCESSION NUMBER:		0000724910-09-000002
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090121
DATE AS OF CHANGE:		20090121

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:		09536815

	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>q3q09.htm
<DESCRIPTION>QUARTERLY REPORT FOR THE PERIOD ENDED DECEMBER 31, 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>December 31, 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" alt="NVE Logo"><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 &#8211; 4,665,333 shares outstanding as of January 16, 2009</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>
<font style="font-size: 10pt; font-family: Times New Roman;"><a href="#Part1"><b>PART
I. FINANCIAL INFORMATION</b></a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Item 1. Financial Statements</a>
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Part1">Balance
Sheets</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#QIncome">Statements
of Income for the Quarters Ended December 31, 2008 and 2007<br>
<br>
</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#YTDIncome">Statements
of Income for the Nine Months Ended December 31, 2008 and 2007</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#CashFlows">Statements
of Cash Flows</a> <br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Notes">Notes
to Financial Statements</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MDA">Item 2. Management&#8217;s Discussion
and Analysis of Financial Condition and Results of Operations</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#MarketRisk">Item 3. Quantitative and Qualitative
Disclosures About Market Risk<br>
<br>
</a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Controls">Item 4. Controls and Procedures<br>
<br>
</a><a href="#Part2"><b>PART II. OTHER INFORMATION</b></a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Risks">Item 1A. Risk Factors</a><br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#Exhibits">Item 6. Exhibits</a><br>
<br>
<a href="#Signatures"><b>SIGNATURES</b></a><br>
<br>
<br>
</font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">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&#8211;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>
</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>
        December 31, 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">
<font style="font-size: 10pt; font-family: Times New Roman;">$</font>
</td>
<td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
<font style="font-size: 10pt; font-family: Times New Roman;">2,438,109</font></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;">498,835</font></div>
</td>
<td valign="bottom">&nbsp;</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;">2,699,346</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;">2,462,098</font></div>
</td>
<td valign="bottom">&nbsp;</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;">509,271</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;">614,516</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;">9,222,175</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;">5,328,531</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;">450,546</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;">5,779,077</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;">4,356,826</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;">1,422,251</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;">29,179,003</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;">39,823,429</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;">405,815</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;">612,011</font></div>
</td>
<td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></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;">125,000</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;">1,142,826</font></div>
</td>
<td valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></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;">46,653</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;">19,100,787</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 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;">
37,363</font></div>
</td>
<td valign="bottom" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</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;">19,495,800</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;">38,680,603</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;">39,823,429</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>
  <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 December 31</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;">4,596,948</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;">4,249,809</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;">1,287,165</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;">515,716</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;">5,884,113</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;">4,765,525</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;">1,763,090</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;">1,663,045</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;">4,121,023</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;">3,102,480</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;">508,953</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;">492,771</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;">258,998</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;">347,344</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;">767,951</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;">840,115</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;">3,353,072</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;">2,262,365</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"><font style="font-size: 10pt; font-family: Times New Roman;">306,814</font></td>
<td valign="bottom"></td>
<td></td>
<td valign="bottom" width="1%"></td>
<td align="right" valign="bottom"><font style="font-size: 10pt; font-family: Times New Roman;">259,865</font></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;">800</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;">62,930</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;">3,660,686</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;">2,585,160</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;">1,192,282</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;">882,867</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;">2,468,404</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;">1,702,293</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;">0.53</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;">0.37</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;">0.52</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;">0.36</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;">4,665,333</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;">4,637,275</font></div>
</td>
<td valign="bottom"></td>
</tr>

<tr bgcolor="#ccdaef">

<td valign="bottom">

<div style="margin-left: 9pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Diluted</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;">4,783,633</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;">4,764,430</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.<br>
  <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="YTDIncome"></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>Nine
        Months Ended Dec. 31</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;">14,015,651</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;">12,830,771</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;">2,460,038</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;">1,648,657</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;">16,475,689</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;">14,479,428</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" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">4,918,140</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;">4,956,973</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">

<div><font style="font-size: 10pt; font-family: Times New Roman;">11,557,549</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;">9,522,455</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;">1,623,810</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;">1,631,936</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;">925,893</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;">1,169,018</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;">2,549,703</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;">2,800,954</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;">9,007,846</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;">6,721,501</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;">838,323</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;">731,243</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;">4,200</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;">62,930</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;">9,850,369</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;">7,515,674</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" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">3,178,968</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>
<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;">2,581,272</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;">6,671,401</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;">4,934,402</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;">1.43</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;">1.06</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;">1.40</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;">1.04</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;">4,656,758</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;">4,634,102</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;">4,774,925</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;">4,761,112</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>
  <br>
  </font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">5<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>Nine
        Months Ended Dec. 31</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;">6,671,401</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;">4,934,402</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</font></div>
</td>
<td width="1%"></td>
<td align="right" valign="bottom">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">343,711</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;">387,453</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;">81,074</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;">164,008</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;">(33,773</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 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;">(4,200</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;">(1,500</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: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Gain
        on marketable securities, net</font></div>
</td>
<td width="1%"></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></td>
<td align="right" valign="bottom" height="16">

<div><font style="font-size: 10pt; font-family: Times New Roman;">(61,430</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: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Deferred
        income taxes</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;">218,134</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;">848,999</font></div>
</td>
<td valign="bottom" bgcolor="#ccdaef"></td>
</tr>

<tr>

<td valign="bottom" colspan="8">

<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" bgcolor="#ccdaef">

<div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Accounts
        receivable</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;">526,681</font></div>
</td>
<td 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;">(177,757</font></div>
</td>
<td valign="bottom" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
</td>
</tr>

<tr>

    <td valign="bottom" height="16">
      <div style="margin-left: 36pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Inventories</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;">(5,294</font></div>
</td>
    <td valign="bottom" height="16"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></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;">(476,954</font></div>
</td>
    <td valign="bottom" height="16"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
</tr>

<tr>

<td valign="bottom" bgcolor="#ccdaef">

<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" bgcolor="#ccdaef"></td>
<td align="right" valign="bottom" height="16" bgcolor="#ccdaef">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">(84,900</font></div>
</td>
    <td bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></td>
<td height="16" bgcolor="#ccdaef"></td>
<td height="16" bgcolor="#ccdaef"></td>
<td align="right" valign="bottom" height="16" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">(505,450</font></div>
</td>
<td valign="bottom" height="16" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">)</font></div>
</td>
</tr>

<tr>

<td valign="bottom">

<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%"></td>
<td align="right" valign="bottom">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">(49,320</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;">(107,431</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 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;" 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;">(62,500</font></div>
</td>
<td style="border-bottom: thin solid black;" valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">)</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;">207,744</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
        provided by operating activities</font></div>
</td>
<td width="1%"></td>
<td align="right" valign="bottom">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">7,398,263</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;">5,178,311</font></div>
</td>
<td valign="bottom"></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;">INVESTING
        ACTIVITIES</font></div>
</td>
</tr>

<tr>

<td valign="bottom" colspan="2" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">Purchases
        of fixed assets</font></div>
</td>
<td align="right" valign="bottom" bgcolor="#ccdaef">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">(400,560</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;">(642,170</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><font style="font-size: 10pt; font-family: Times New Roman;">Proceeds
        from sale of fixed assets</font></div>
</td>
<td></td>
<td align="right" valign="bottom">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">4,200</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;">1,500</font></div>
</td>
<td valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
</td>
</tr>

<tr>

<td valign="bottom" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">Purchases
        of marketable securities</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;">(8,367,695</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;">(11,153,044</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><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;"><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;">1,437,593</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">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">7,388,884</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
        used in investing activities</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;">(7,326,462</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;">(4,404,830</font></div>
</td>
    <td valign="bottom" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">)</font></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;">FINANCING
        ACTIVITIES</font></div>
</td>
</tr>

<tr>

<td valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">Net proceeds
        from sale of common stock</font></div>
</td>
<td></td>
<td align="right" valign="bottom">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">243,917</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;">47,024</font></div>
</td>
<td valign="bottom"></td>
</tr>

<tr>

<td valign="bottom" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">Excess
        tax benefits</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;">236,524</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" width="11%" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">33,773</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">

<div><font style="font-size: 10pt; font-family: Times New Roman;">Net cash
        provided by financing activities</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;">480,441</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" width="11%">

      <div><font style="font-size: 10pt; font-family: Times New Roman;">80,797</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" 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;">Increase in cash and cash equivalents</font></div>
</td>
<td></td>
<td align="right" valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">552,242</font></div>
</td>
<td valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
</td>
<td></td>
<td></td>
<td align="right" valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">854,278</font></div>
</td>
<td valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></div>
</td>
</tr>

<tr>

<td valign="bottom" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">Cash and
        cash equivalents at beginning of period</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;">1,885,867</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;">397,423</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 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;">Cash and
        cash equivalents at end of period</font></div>
</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;">2,438,109</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;">1,251,701</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 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;">Supplemental
        disclosures of cash flow information:</font></div>
</td>
</tr>

<tr>

<td valign="bottom" colspan="8">

<div style="margin-left: 18pt;"><font style="font-size: 10pt; font-family: Times New Roman;">Cash
        paid during the period for:</font></div>
</td>
</tr>

<tr bgcolor="#ccdaef">

<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;">2,806,000</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;">2,209,313</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.<br>
  <br>
  <br>
  6<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&nbsp;31, 2008. The results of operations for the quarter ended
December 31, 2008 are not necessarily indicative of the results that may be expected
for the full fiscal year ending March&nbsp;31, 2009.<br><br>
<b>NOTE 3. NET INCOME PER SHARE</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We calculate our net income per share in accordance
with Financial Accounting Standards Board (FASB) Statement of Financial Accounting
Standards (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 60,000 for the quarter and
nine months ended December&nbsp;31, 2008 and 56,000 for the quarter and nine months
ended December&nbsp;31, 2007 were not included in the computation of diluted earnings
per share because the exercise prices of the options and warrants 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.&nbsp;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 Dec. 31</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;">4,665,333</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;">4,637,275</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;">113,670</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;">122,734</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;">4,630</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;">4,421</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;">4,783,633</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;">4,764,430</font></div>
    </td>
  </tr>
</table>
<p>
<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>Nine
      Months Ended Dec. 31</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;">4,656,758</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;">4,634,102</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;">113,537</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;">122,589</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;">4,630</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;">4,421</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;">4,774,925</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;">4,761,112</font></div>
    </td>
  </tr>
</table>
<font style="font-size: 10pt; font-family: Times New Roman;"><br>
<br>
<b>NOTE 4. MARKETABLE SECURITIES</b><br>
&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from maturities of marketable securities were
$1,437,593 in the nine months ended December&nbsp; 31, 2008, and there were no
gross gains or gross losses on the maturities of those securities. Proceeds from
maturities and sales of marketable securities were $7,388,884 in the nine months
ended December 31, 2007, with gross gains of $65,931 and gross losses of $4,501
for those maturities and sales. We use a specific-identification cost basis to
determine gains and losses.<br>
<br>
<br>
<div align="center">7<br>
</div>
</font>
<hr>
<br clear="all" style="page-break-before:always;">
<font style="font-size: 10pt; font-family: Times New Roman;"><b><a href="#TOC">Table
of Contents</a></b></font>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b>NOTE 5. COMPREHENSIVE INCOME</b> <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The components of comprehensive income are as
  follows:<br><br>
</font>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td rowspan="2"></td>
    <td colspan="7" style="border-bottom: thin solid black;" valign="bottom">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<b>Quarter
        Ended Dec. 31</b></font></div>
    </td>
  </tr>
  <tr>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2008</b></font></div>
    </td>
    <td width="2%"></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2007</b></font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Net
      income</font></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">2,468,404</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;">1,702,293</font></div>
    </td>
    <td bgcolor="#ccdaef" width="1%"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
  <tr>

    <td height="15"><font style="font-size: 10pt; font-family: Times New Roman;">Unrealized
      gain from marketable securities</font></td>
    <td style="border-bottom: thin solid black;" height="15"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" height="15">

<div><font style="font-size: 10pt; font-family: Times New Roman;">393,117</font></div>
    </td>
    <td style="border-bottom: thin solid black;" height="15">&nbsp;</td>
    <td height="15"></td>
    <td style="border-bottom: thin solid black;" height="15"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
    <td style="border-bottom: thin solid black;" align="right" valign="bottom" height="15">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">36,317</font></div>
    </td>
    <td style="border-bottom: thin solid black;" height="15"><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;">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;">2,861,521</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;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">1,738,610</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
</table>
<p>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td rowspan="2"></td>
    <td colspan="7" style="border-bottom: thin solid black;" valign="bottom">
      <div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;<b>Nine
        Months Ended Dec. 31</b></font></div>
    </td>
  </tr>
  <tr>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2008</b></font></div>
    </td>
    <td width="2%"></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center">
      <div style="margin-left: 0px; text-indent: 0px; margin-right: 0px;" align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b>2007</b></font></div>
    </td>
  </tr>
  <tr>
    <td valign="bottom" bgcolor="#ccdaef"> <font style="font-size: 10pt; font-family: Times New Roman;">Net
      income</font></td>
    <td valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">6,671,401</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;">4,934,402</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) gain 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;">(65,795</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;">77,641</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;">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;">6,605,606</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;">$</font></div>
    </td>
    <td style="border-bottom: medium double black;" align="right" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">5,012,043</font></div>
    </td>
    <td style="border-bottom: medium double black;" bgcolor="#ccdaef"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></td>
  </tr>
</table>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b><br>
  NOTE 6. INVENTORIES</b> <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories consisted of the following:<br>
  <br>
  </font>
<table cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center"><b><font style="font-size: 10pt; font-family: Times New Roman;"><b>December</b>
      31<br>
      2008</font></b></td>
    <td></td>
    <td style="border-bottom: thin solid black;" colspan="3" align="center"><b><font style="font-size: 10pt; font-family: Times New Roman;">March
      31<br>
      2008</font></b></td>
  </tr>
  <tr>
    <td align="left" valign="bottom" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">Raw materials</font></div>
    </td>
    <td align="left" valign="bottom" width="1%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">$</font></div>
    </td>
    <td align="right" valign="bottom" width="11%" bgcolor="#ccdaef">
      <div><font style="font-size: 10pt; font-family: Times New Roman;">614,230</font></div>
    </td>
    <td bgcolor="#ccdaef" width="1%"><font style="font-size: 10pt; font-family: Times New Roman;">&nbsp;</font></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;">1,282,485</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;">865,383</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;">2,762,098</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;"">2,462,098</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><br>
NOTE 7. 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 third quarter
of fiscal 2009, $5,598 for the third quarter of fiscal 2008</font><font style="font-size: 10pt; font-family: Times New Roman;">,
$81,074 for the first nine months of fiscal 2009, and $164,008 for the first nine
months of fiscal 200</font><font style="font-size: 10pt; font-family: Times New Roman;">8.
The decrease in expense under SFAS No. 123(R) for the first nine months of fiscal 2009 compared to the first nine months of fiscal 2008 was due to a decrease to 1,000 share
options granted to each non-employee director on their reelection to our Board,
compared to 2,000 shares in the prior-year period, in consideration of the addition
of cash compensation for non-employee directors. 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 8. 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 nine months ended December&nbsp;31, 2008 and
$33,773 for the nine months ended December&nbsp;31, 2007 were credited to &#147;Additional
paid-in capital.&#148;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 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 December&nbsp;31, 2008
we had no accrued interest related to uncertain tax positions. The years 2005 through 2007 remain open to examination
by the major taxing jurisdictions to which we are subject.<br>
<br>
<b>NOTE 9. 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 $</font><font style="font-size: 10pt; font-family: Times New Roman;">29,677,838
at December&nbsp;31, 2008 and $22,851,007 at March&nbsp;31, 2008.<br>
<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><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 our
  subsequently-filed Quarterly Reports 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 December&nbsp;31, 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>
  <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
  December 31, 2008 compared to quarter ended December 31, 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 Dec. 31</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;">78.1</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="4%"></td>
<td align="right" valign="bottom" width="9%">

<div><font style="font-size: 10pt; font-family: Times New Roman;">89.2</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="4%"></td>
<td align="right" valign="bottom" width="9%">

<div><font style="font-size: 10pt; font-family: Times New Roman;">8.2</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;">21.9</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;">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;">149.6</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;">23.5</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;">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;">30.0</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;">34.9</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;">6.0</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;">Gross
        profit</font></div>
</td>
<td align="right" valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">70.0</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;">65.1</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;">32.8</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;">8.6</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;">10.3</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;">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 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;">4.4</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;">7.3</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;">(25.4</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;">13.0</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;">17.6</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;">(8.6</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;">57.0</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;">47.5</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;">48.2</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;">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;">5.2</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;">6.7</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;">(4.7</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;">Income
        before taxes</font></div>
</td>
<td align="right" valign="bottom" bgcolor="#ccdaef">

<div><font style="font-size: 10pt; font-family: Times New Roman;">62.2</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;">54.2</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;">41.6</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;">20.2</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;">18.5</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;">35.0</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;">42.0</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;">35.7</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;">45.0</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>
</table>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue for the quarter ended December&nbsp;31,
2008 (the third quarter of fiscal 2009) increased 23%
to $5,884,113 compared to $4,765,525 for the
quarter ended December&nbsp;31, 2007 (the third quarter of fiscal 2008). The increase
was due to an 8% increase in product sales and a 150% increase in contract research and development revenue. The increase in product
sales was due to increased volume from the addition of new customers and increased
purchase volume by existing customers. The increase in research and development
revenue was due to new contracts. The increase in research and development
revenue may not be representative of future trends and there can be no assurance of additional or follow-on contracts for expired or completed contracts.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit margin increased to 70% of revenue
for the third quarter of fiscal 2009 compared to 65% for the third quarter of
fiscal 2008. The increase was due to higher margins on both product sales and
research and development revenue.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expense decreased 25%
for the third quarter of fiscal 2009 compared to the third quarter of fiscal 2008
due to the completion of certain research and development projects and an increase
in contract research and development obligations. 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;Interest income increased 18%
to $306,814 for the third quarter of fiscal
2009 compared to $259,865 for the third quarter of fiscal 2008. The increase was
due to an increase in interest-bearing marketable securities. Other income was
$800 for the third quarter of fiscal 2009
compared to $62,930 for the third quarter of fiscal 2008. Other income for the third quarter of fiscal 2008
consisted primarily of a $61,430 net gain on maturities and sales of marketable
securities.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provision for income taxes was $1,192,282,
or  33% of income before taxes, for the third
quarter of fiscal 2009 compared to $882,867, or 34% of income before taxes, for
the third 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 45% increase
in net income in the third quarter of fiscal 2009 compared to the prior-year quarter
was primarily due to increases in total revenue and gross profit margin, and a decrease in research and development expense.<br>
<br>
<br>
<div align="center">10</div><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>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b>Nine months
  ended December 31, 2008 compared to nine months ended December 31, 2007</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table shown below summarizes the percentage
  of revenue and period-to-period 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>
Nine Months Ended Dec. 31</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>Period-<br>to-Period<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;">85.1</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="4%"></td>
<td align="right" valign="bottom" width="9%">

<div><font style="font-size: 10pt; font-family: Times New Roman;">88.6</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="4%"></td>
<td align="right" valign="bottom" width="9%">

<div><font style="font-size: 10pt; font-family: Times New Roman;">9.2</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;">14.9</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;">11.4</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;">49.2</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;">13.8</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;">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;">29.9</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;">34.2</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;">(0.8</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;">Gross
        profit</font></div>
</td>
<td align="right" valign="bottom">

<div><font style="font-size: 10pt; font-family: Times New Roman;">70.1</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;">65.8</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;">21.4</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;">9.8</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;">11.3</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;">(0.5</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 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;">5.6</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;">8.1</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;">(20.8</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;">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;">15.4</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;">19.4</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;">(9.0</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;">54.7</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;">46.4</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;">34.0</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;">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;">5.1</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;">5.5</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;">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><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;">59.8</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;">51.9</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;">31.1</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;">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;">19.3</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;">17.8</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;">23.2</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;">40.5</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;">34.1</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;">35.2</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 nine months ended December&nbsp;31,
2008 increased 14% to $16,475,689 compared to $14,479,428 for the nine months
ended December&nbsp;31, 2007. The increase was due to a 9% increase in product
sales and a 49% increase in research and development revenue. The increase in
product sales was due to increased volume from the addition of new customers and
increased purchase volume by existing customers. The increase in research and
development revenue was due to new contracts.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit margin increased to 70% of revenue
for the first nine months of fiscal 2009 compared to 66% for the first nine months
of fiscal 2008. The increase was due to higher margins on both product sales and
research and development revenue.<br>
&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development expense decreased 21% for
the first nine months of fiscal 2009 compared to the first nine months of fiscal
2008 due to the completion of certain research and development projects and an
increase in contract research and development obligations.<br>
&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other income increased 6% to $842,523
for the first nine months of fiscal 2009 compared to $794,173 for the nine months
ended December 31, 2007. The increase was primarily due to an increase in interest-bearing
marketable securities. Other income for the nine months ended December 31, 2007
consisted primarily of a $61,430 net gain on maturities and sales of marketable
securities.<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provision for income taxes was $3,178,968 or
32% of income before taxes for the first nine months of fiscal 2009 compared to
$2,581,272 or 34% of income before taxes for the first nine months 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 35% increase in net income in the first nine
months of fiscal 2009 compared to the prior-year period was primarily due to increases
in total revenue and gross profit margin, and a decrease in research and development
expense.<br>
<br>
<br>
<br>
</font>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;">11<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 face="Times New Roman, Times, serif" size="2"><b>Seasonality</b> <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product sales for the third quarter of fiscal
  2009 were less than the immediately preceding quarter,
  which is the same pattern as each of the three previous fiscal years. This pattern
  may be due in part to distributor ordering patterns or customer vacations and
  shutdowns late in calendar years. We do not know if this pattern will continue, and we do not know if product sales will increase in the fourth quarter of fiscal
  2009 compared to the third quarter of fiscal 2009 as they have in the three previous fiscal years.<br>
<br>
<b>Liquidity and capital resources</b><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2008 we had $32,115,947 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 nine months of fiscal 2009 was primarily
  due to $7,398,263 in net cash provided by operating activities. <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable decreased $526,681
  in the first nine months of fiscal 2009 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 were $400,560 for the
  first nine months of fiscal 2009 compared to $642,170 for the first nine months
  of fiscal 2008. Purchases during both periods were primarily for capital equipment
  to increase our production capacity and were financed 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>
  <b><a name="MarketRisk"></a>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,
  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,
  net of estimated tax. Marketable securities as of December&nbsp;31, 2008 had
  remaining maturities between 11&nbsp;weeks and 52&nbsp;months. Our short-term
  and long-term marketable securities had a fair market value of $29,677,838 at
  December&nbsp;31, 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 of 1934 (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 our 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 December&nbsp;31, 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>
  <br>
  </font>
<p align="center"><font style="font-size: 10pt; font-family: Times New Roman;">12<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>
<div align="center"><font style="font-size: 10pt; font-family: Times New Roman;"><b><a name="Part2"></a>PART II&#8211;OTHER INFORMATION</b></font></div>
<p><font style="font-size: 10pt; font-family: Times New Roman;"><b><a name="Risks"></a>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 as updated in our Quarterly Report on Form 10-Q for the quarter ended June&nbsp;30, 2008 and  as follows.<br>
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following risk factor is added:<br>
<br>
<i><b>Our marketable securities are subject to risks which may  affect the liquidity of these investments or cause losses.</b></i><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At December&nbsp;31, 2008, we held $29,677,838 in short-term and long-term marketable securities, which included government agency obligations, municipal obligations, and corporate obligations. The ongoing credit crisis has significantly affected issuer credit rating, insurer financial condition and credit rating, liquidity, market, and interest rates for these and other types of obligations. The financial market risks associated with our marketable securities may have an adverse effect on our financial condition, results of operations, or cash flows.<br>
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The risk factor titled &#147;We face an uncertain economic environment in our industry that could adversely
affect our business and operations&#148; is replaced in its entirety by the following risk factor:<br>
<br>
<b><i>We face an uncertain economic environment in the industries we serve, which could adversely
affect our business.<br>
</i></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant portion of our product sales are  into industries affected by the recent worldwide  economic downturn. This downturn has resulted in a significant decrease in the semiconductor market, which is the primary
market for our products. Industries we serve that have been affected by the economic downturn include industrial control, factory automation, scientific instruments, and certain medical  industries. We cannot predict the timing, strength, or duration of any economic slowdown or subsequent  recovery, worldwide or in the  industries we serve. A material adverse
impact on our business and revenue is likely if the economy or industries we serve do not improve from their present levels.<br>
<br>
<br>
<br>
<div align="center">13</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></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>January
        21, 2009</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>January 21, 2009</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:
    January 21, 2009</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:
    January 21, 2009</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 December 31, 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:
    January 21, 2009</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>

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