KVH Industries, Inc. (KVHI)

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KVH Receives $1.9 Million Order for TACNAV Military Navigation Technology

Thursday May 5, 7:30 am ET

MIDDLETOWN, R.I.--(BUSINESS WIRE)--May 5, 2005--KVH Industries, Inc., (Nasdaq: KVHI - News) announced today that it has received a new order worth approximately $1.9 million from a defense prime contractor for elements of its TACNAV® military vehicle navigation system. The TACNAV components included within the order will be used to upgrade KVH's TACNAV navigation systems already in the field, allowing the navigation system to connect with the U.S. Army's FBCB2 digital battlefield system. The company expects to recognize all of the revenue from this contract in 2005.

"Our defense navigation business remains a significant strategic area for KVH both through new sales and, in the case of this recent order, ongoing component sales to support expanded operational capabilities and ongoing fielding requirements with our existing customers," said Dan Conway, vice president of business development for KVH Industries. "TACNAV has consistently proven its ability to support applications in demanding military environments, including vehicle navigation, integration with digital battlefield management systems, and precision stabilization and pointing."

Due to contractual restrictions, additional details regarding the 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, commanders, and crews. 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 customers, including Canada, Sweden, Great Britain, Germany, Spain, Australia, New Zealand, Saudi Arabia, Taiwan, Malaysia, Switzerland, 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's defense navigation products are available for download and editorial use at http://www.kvh.com/mediasupport.

KVH Industries, Inc., designs and manufactures products that enable mobile communication, navigation, and precision pointing through the use of its proprietary mobile satellite antenna and fiber optic technologies. The company is developing next-generation systems with greater precision, durability, and versatility for communications, navigation, and industrial applications. An ISO 9001-certified company, KVH has headquarters in Middletown, Rhode Island, with a fiber optic and military navigation product manufacturing facility in Tinley Park, Illinois, and a European sales, marketing, and support office in Kokkedal, Denmark.

This press release may contain certain forward-looking statements that involve risks and uncertainties. For example, the statements regarding the company's financial goals for 2005 are forward-looking statements. The actual results realized by the company could differ materially from the statements made herein. Factors that might cause such differences include, but are not limited to: lack of reliable vendors, service providers, and outside products; uneven military sales cycles and changes in procurement priorities; the ability of the government and its contractors to cancel orders at their convenience; unforeseen changes in competing technologies and products; and worldwide economic variances. Additional factors are discussed in the company's most recent Form 10-K, filed with the SEC on March 16, 2005. Copies are available through the company's Investor Relations department and web site, www.kvh.com. KVH assumes no obligation to update its forward-looking statements to reflect new information and developments.



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