KVH Industries, Inc. (KVHI)

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KVH Receives $2.25 Million Order for TACNAV Military Navigation Systems
Tuesday December 28, 7:30 am ET


MIDDLETOWN, R.I.--(BUSINESS WIRE)--Dec. 28, 2004--KVH Industries, Inc., (Nasdaq: KVHI - News) announced today that it has received an order valued at roughly $2.25 million for its TACNAV® vehicle navigation systems and related program management services. The order, placed by a major defense prime contractor on behalf of a foreign customer, has a potential total value of $2.85 million if optional engineering support orders are placed. The majority of the contract revenue is expected to be recognized during the first half of 2005.
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"International military sales have long been a key element in our overall defense business," explained Dan Conway, KVH's vice president of business development. "Both our new and long-standing foreign military customers recognize the benefits offered by KVH's TACNAV systems, including unjammable navigation and pointing capabilities, connections to digital battlefield systems, and a supplement to and backup for the Global Positioning System (GPS). This new order contributes to our defense backlog, a foundation that we anticipate will allow our military products to make a steadier contribution to our overall revenue growth and profits in the future."

Due to contractual restrictions, additional details regarding the prime contractor and foreign customer cannot be disclosed.

KVH's TACNAV military vehicle navigation systems employ KVH's digital compass and fiber optic gyro (FOG) technology as well as proprietary software algorithms to provide uninterrupted navigation, heading, and pointing data for vehicle drivers, crews, and commanders. While TACNAV complements GPS, its self-contained sensors operate independently of GPS. As a result, TACNAV continues to provide mission-critical data for troops in the vehicle as well as to the digital battlefield system, even if GPS is blocked, jammed, or is otherwise unavailable. TACNAV can also serve as a link between each vehicle and the overall digital battlefield, making each unit a node in a secure military network that consolidates a wide range of tactical data to provide detailed information to individual units and military commanders.

KVH TACNAV navigation systems are currently in use on U.S. and allied vehicles participating in ongoing operations in Iraq. TACNAV systems have been sold for use aboard U.S. Army, Marine Corps, and Navy vehicles as well as to many allied countries, including Canada, Sweden, Britain, Germany, Spain, Australia, New Zealand, Saudi Arabia, Taiwan, Malaysia, and Italy.

Complete details regarding KVH's defense navigation and guidance products are available at http://www.tacnav.com.

Note to editors: high-resolution images of KVH defense navigation and guidance systems are available for download and editorial use at http://www.kvh.com/mediasupport.