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KVH TACNAV Light Officially Designated the M100 by U.S. Army SOCOM

09.04.03

Completing Milestone C, the M100 is Now Approved for Full-rate Production and Fielding by U.S. Army Special Operations Command

MIDDLETOWN, R.I.--(BUSINESS WIRE)--Sept. 4, 2003--KVH Industries (Nasdaq: KVHI) announced today that the U.S. Army Special Operations Command (SOCOM) has formally certified that KVH's TACNAV Light vehicle navigation system has achieved Milestone C, authorizing the system for full rate production and fielding aboard U.S. Army SOCOM vehicles. As part of the Milestone C decision, U.S. Army SOCOM has also approved TACNAV Light as a standard Army system, giving it the designation "M100 Ground Mobility Enhanced Navigation System" (M100 GMENS). These two announcements pave the way for the M100 to be fielded by any U.S. Army vehicle program.

"Our entire TACNAV family has proved its worth to U.S. and allied troops during the last decade, most recently in Afghanistan and Operation Iraqi Freedom," said Martin Kits van Heyningen, KVH's president and chief executive officer. "Achieving Milestone C and attaining the M100 GMENS designation is a tremendous milestone for KVH that will have benefits for both the vehicle crews that will use this technology in the field as well as for KVH. This event has the potential to increase our tactical navigation sales opportunities dramatically in the future."

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.

During Operation Iraqi Freedom, Iraqi military forces attempted to use GPS jamming systems and sandstorms reduced visibility to near zero. TACNAV was designed with situations like these 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. The system also aids rapid and precise navigation in urban areas.

Dan Conway, KVH's vice president of business development, commented on the importance of attaining the M100 designation: "Attaining this type classification is invaluable to our efforts to equip U.S. and allied forces with the precision vehicle navigation necessary on the modern field of combat. As with other products that have been awarded this type classification - the M16 rifle and the M1A1 tank, for example - the M100 GMENS is now a standard Army product that has completed all formal testing, has logistics and training support in place, and is available to any vehicle program with the need and the budget. Just as importantly, allied militaries routinely use U.S. Army type classified systems and products, opening the door for expanded international sales."

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 sales potential for the company's products 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; 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, www.kvh.com. KVH assumes no obligation to update its forward-looking statements to reflect new information and developments.

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