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KVH TACNAV Systems Selected for Use on Taiwan Amphibious Assault Vehicles

11.18.03

MIDDLETOWN, RI – November 18, 2003 – Illustrating the growing demand for tactical navigation solutions aboard military vehicles, United Defense LP has placed an order on behalf of the Republic of Taiwan to equip Taiwan’s new AAV-7 amphibious combat vehicles with the TACNAV® Light tactical navigation system from KVH Industries (Nasdaq: KVHI). This small initial order, scheduled to ship in 2004, marks the first use of KVH’s military navigation equipment in Taiwan and has the potential for follow-on purchases in the future.

“The TACNAV family of precision navigation systems has shown its value in operational theatres worldwide, most recently in Afghanistan and Operation Iraqi Freedom,” said Dan Conway, vice president of business development. “We are very pleased to have been selected to provide the tactical navigation solution for Taiwan’s new AAV-7 program. This order is the most recent sign of the growing recognition among military planners of the value offered by the TACNAV system with regard to navigational and situational awareness aboard military vehicles.”

KVH has an extensive history as the supplier for AAV-7 navigation systems. The company’s first military vehicle contract was to supply its MV103 digital compass system for use aboard all U.S. Marine Corps AAV-7s. Since that time, those original digital compasses have been upgraded to TACNAV Light units similar to those slated for use by Taiwan, and the U.S. Marine Corps AAV-7s have seen extensive operational and combat use, most recently during Operation Iraqi Freedom.

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. 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, Saudi Arabia, Malaysia, and Italy, making TACNAV the most widely fielded tactical navigation system in the industry. KVH’s latest-generation equipment is fielded on military vehicles currently serving in such operational theatres as Iraq, Kosovo, Bosnia, and Afghanistan. The M100 Ground Mobile Enhanced Navigation Systems (GMENS) is the successor to the TACNAV Light and recently received official type classification from the U.S. Army Special Operational Command (SOCOM). The German Army has also designated it as a standard product.

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 sales and shipment goals for 2004 or the functionality, characteristics, quality, and performance of KVH’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: uneven military sales cycles; unforeseen changes in competing technologies and products; and worldwide economic variances. Additional factors are discussed in the company’s most recent Form 10-Q filed with the SEC. 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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