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KVH Receives $1.4 Million Order from U.S. Special Operations Command


SOCOM to Field the TACNAV Vehicle Navigation System, which was used by U.S. and British Forces During Operation Iraqi Freedom

MIDDLETOWN, R.I., May 6, 2003 /PRNewswire-FirstCall via COMTEX/ -- The U.S. Special Operations Command (SOCOM) has placed a $1.4 million order with KVH Industries (Nasdaq: KVHI) for the company's TACNAV military vehicle navigation system. This order comes shortly after a successful operational test of the TACNAV system aboard SOCOM vehicles and follows SOCOM's original order, placed in September 2002. The self-contained TACNAV system, which provides precision heading, pointing, and navigation data, was most recently used aboard many front-line combat vehicles deployed during Operation Iraqi Freedom. This new order is the latest component of a large-quantity, multi- year SOCOM program for the purchase and fielding of TACNAV systems potentially worth in excess of $10 million over the life of the program.

"We are extremely pleased that the U.S. Special Operations Command recognizes the value that TACNAV offers to American warfighters and that SOCOM has elected to continue fielding these critical systems throughout its vehicle fleet, including those of the U.S. Army Special Forces," said Martin Kits van Heyningen, KVH president and chief executive officer. "We are committed to ensuring that U.S. and allied troops have the equipment they need to carry out their missions quickly and return home safely."

KVH's TACNAV and fiber optic gyro products offer 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. Early systems were used during the Gulf War, and KVH's latest-generation equipment is already fielded on U.S., Canadian, and British vehicles currently serving in such operational theatres as Iraq, Kosovo, Bosnia, and Afghanistan.

During Operation Iraqi Freedom, Iraqi military forces attempted to use GPS jamming systems and sandstorms reduced visibility to near zero. TACNAV was designed with these situations in mind. It includes both inertial and magnetic field sensors, making it impossible to jam. Its navigation capabilities were unaffected by harsh weather, and the system proved ideal for precision vehicle navigation in combat situations.

Dan Conway, KVH's vice president of business development, commented on KVH's close collaboration with SOCOM: "We continue to work closely with SOCOM to ensure that TACNAV is ready for full integration into their entire vehicle fleet. Following an initial order in late 2002, we have been preparing for the rollout of TACNAV to the full SOCOM fleet of HMMWVs and light trucks. KVH personnel recently participated in extensive evaluations of TACNAV aboard Special Forces vehicles and we passed these stringent operational tests with flying colors. As a result of this effort, we expect that TACNAV will be formally accepted as a standard product in the U.S. Army procurement system."

The TACNAV product family has been fielded by both the U.S. Army and Marine Corps as well as by many allied countries, including Canada, Sweden, Britain, Spain, Australia, New Zealand, and Italy, making TACNAV the most widely fielded tactical navigation system in the industry.

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-registered company, KVH has headquarters in Middletown, Rhode Island, with a fiber optic manufacturing facility in Tinley Park, Illinois, and a European sales, marketing, and support office in Hoersholm, Denmark.

This press release contains certain forward-looking statements that involve risks and uncertainties. For example, the statements regarding the company's financial and product development goals for 2003 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: failure to develop and market fiber optic products; lack of reliable vendors, service providers, and outside products; uneven military sales cycles; unforeseen changes in competing technologies and products; worldwide economic variances; and poor or delayed research and development results. Additional factors are discussed in the company's 2002 Form 10-K filed with the Securities and Exchange Commission on March 26, 2003. 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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