NVE Receives GMR Sensor Order from Starkey Laboratories

Oct 13, 2004, 01:00 ET from NVE Corporation

    EDEN PRAIRIE, Minn., Oct. 13 /PRNewswire-FirstCall/ -- NVE Corporation
 (Nasdaq:   NVEC) has received an initial order from Starkey Laboratories Inc.
 for custom-designed ultra-miniature spintronic sensor integrated circuits. The
 NVE devices will replace electromechanical sensors in Starkey hearing aids.
 The order has a value of more than $100,000 with shipments scheduled to begin
 in early 2005. Starkey has said that the NVE product could eventually be used
 in all of its hearing aids, which could lead to additional orders.
     The sensors use NVE's patented Giant Magnetoresistor (GMR) elements
 embedded in a conventional integrated circuit. Giant Magnetoresistors are
 nanotechnology spintronic devices that produce "giant" changes in resistance
 when subjected to magnetic fields. The GMR effect requires conduction layers
 thinner than the mean free path of conduction electrons. The critical
 conduction layers in the devices for Starkey are approximately three
 nanometers thick, less than ten atomic layers and less than one-ten thousandth
 the thickness of a piece of tissue paper.
     "The small size, high precision, and low power of the NVE devices allow us
 to reduce the size and increase the performance of our hearing aids," said
 Thomas Victorian, Starkey's vice president of engineering. "Prototype hearing
 aids incorporating these NVE sensors have performed extremely well in real-
 world field tests. The new sensor will make it easier for patients to use
 cellphones or other electronic devices and improve the quality of our
 patients' lives."
     NVE President and Chief Executive Officer Daniel A. Baker, Ph.D. added,
 "Starkey is an innovative force in their industry, and we are proud to be part
 of a major product improvement. This order is the culmination of rigorous
 testing and qualification by Starkey, and an important step in our goal of
 expanding our presence in the medical sensor market with the world's only GMR
 medical sensors."
     The medical sensor market is projected to grow to $845 million in 2008,
 from $600 million in 2003, according to The Freedonia Group, a leading
 international business research company.
     Privately-held Starkey Laboratories Inc. is the world's leading
 manufacturer of custom hearing instruments with 33 facilities in 18 countries
 and a workforce of over 4,000.
     NVE is a leader in the practical commercialization of spintronics, a
 nanotechnology which many experts believe represents the next generation of
 microelectronics. NVE licenses its MRAM intellectual property and sells
 spintronic products, including sensors and couplers to revolutionize data
 sensing and transmission.
     Statements used in this press release that relate to future plans, events,
 financial results or performance are forward-looking statements that are
 subject to certain risks and uncertainties including, among others, such
 factors as risk of order cancellations, risks related to competitive threats,
 risks associated with our reliance on several large customers, and risks
 associated with meeting stringent customer technical requirements, as well as
 the risk factors listed from time to time in our filings with the SEC,
 including our Annual Report on Form 10-KSB and other reports filed with the

SOURCE NVE Corporation