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KVH Praised by Congressional Delegation for Contributions to War on Terrorism


Senator Jack Reed and Congressman Patrick Kennedy Cite KVH’s Efforts to Support U.S. and Allied Counter-terrorism Efforts with New Navigation Technology

MIDDLETOWN, RI - July 29, 2002 - U.S. Senator Jack Reed, Congressman Patrick Kennedy, and a representative of the Rhode Island Army National Guard Special Forces came to KVH Industries' Middletown, Rhode Island, headquarters today to commend the company for its support of military efforts in the war on terrorism. U.S. and Canadian forces conducting counter-terrorism operations in Afghanistan are using the TACNAV(tm) tactical navigation systems manufactured by KVH (Nasdaq: KVHI).

Addressing the KVH employees, Senator Reed declared, "Your technology, your innovation, and your ingenuity have made our fighting forces superior to any other in the field. The TACNAV system, fiber optic gyros, and digital sensors can mean the difference between success and failure, life and death. This company is going to be on the cutting edge of our military development. We're developing new forces, like the Interim Brigade Combat Team, that are lighter and faster. What we trade off in armor, we need to make up for with information, sensors, and technology. KVH will play a major part in this effort."

KVH TACNAV systems offers every vehicle and every force commander - whether in a command, support, or combat vehicle - 100% availability of position and other tactical data, even if the signals from Global Positioning System (GPS) satellites are disrupted or jammed. In addition to interfacing with the onboard GPS, TACNAV consolidates vehicle location and heading, turret angle, and far target location into a single-point interface that can be transmitted via digital Battlefield Management Systems to the force commander and the other units in the field. More than 7,000 KVH military navigation systems are currently fielded worldwide.

Congressman Kennedy stated "I am proud of the work KVH is doing for our nation's defense. The technology produced at KVH will enhance our Special Forces' tactical war fighting capabilities and allow them to more effectively navigate and maneuver in hostile environments. The electronic digital compass represents the next generation of high tech navigation equipment designed specifically to meet the challenges of the most complicated battlefields."

Last year Congressman Kennedy, working with Senator Reed, secured a $1.4 million appropriation in the Fiscal Year 2002 budget to support the U.S. Army's use of KVH's TACNAV tactical navigation system. Congressman Kennedy and Senator Reed are members of the House and Senate Appropriations Committees, respectively.

"We at KVH were honored to have two distinguished members of our congressional delegation here today, together with a member of the U.S Army Special Forces," remarked Martin Kits van Heyningen, president and chief executive officer. "Senator Reed and Congressman Kennedy are working diligently to ensure that the U.S. military has the funding it needs to be fully equipped and prepared for the challenges that lie ahead. We appreciate their support for our efforts to aid our military forces and our country in the war on terrorism. Our soldiers deserve to have the equipment they need to save their own lives as they carry out their mission to defend ours."

"It's good to have equipment from a Rhode Island company," said a representative of the Rhode Island Army National Guard Special Forces, who recently returned from operations in southwest Asia. "When we were thousands of miles away, we could look at this equipment and feel a bit closer to home."

Congressman Kennedy and Senator Reed are pressing for additional funding for the company in this year's defense appropriations bill, which has passed the full House. The Senate must still consider its own defense appropriation bill.

KVH Industries, Inc., designs and manufactures products that enable mobile communication, defense navigation, and direction sensing 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-registered company, KVH has headquarters in Middletown, Rhode Island, with a fiber optic manufacturing facility in Illinois, and a European sales, marketing, and support office in Hoersholm, Denmark.

Except for historical facts, the statements in this press release are forward-looking statements that involve risks and uncertainties. For example, statements regarding potential defense appropriations that may be directed towards KVH are forward-looking statements. Forward-looking statements are merely our current predictions of future events. The statements are inherently uncertain, and actual results realized by the company could differ materially from the statements made herein. Important factors that might cause such differences include: delays in the military procurement process, changes in military priorities and appropriations, or global economic variances. Additional factors that could affect future events are discussed in the company's 2001 Form 10-K filed with the Securities and Exchange Commission on March 20, 2002. Copies are available through the company's Investor Relations department and web site, KVH assumes no obligation to update its forward-looking statements to reflect new information and developments.

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