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Move Over Satellite Radio, Satellite TV is Coming to the American Car!


Revolutionary TracVision® A5 Antenna Makes Live Satellite TV a Reality in Automobiles Driving Throughout the United States

MIDDLETOWN, RI – May 14, 2003 – While new satellite radio services launched over the past year claim to be the most advanced automobile entertainment available, KVH Industries (Nasdaq: KVHI) has taken automotive multimedia to new heights with the invention of the TracVision A5, a revolutionary ultra-low profile antenna that will bring live satellite television to in-vehicle video screens across the country. This remarkable new phased-array antenna is being introduced just as mobile video systems have become the hottest selling automotive electronic accessory on the market today. For the first time, the excitement and variety of premium, static-free, digital satellite TV programming will be available in automobiles. And KVH believes that just as television became America’s primary form of entertainment and news delivery in the home, it has the potential to do the same in passenger vehicles thanks to TracVision A5 and the power of satellite TV to reach cars traveling throughout the United States.

“People love to watch TV and not just at home. The exploding popularity of rear-seat video entertainment systems confirms that,” explains Jim Dodez, KVH’s vice president of marketing. “Satellite radio, for all its variety, is still just audio entertainment. While roughly 600,000 people have subscribed to the various satellite radio services, published industry data estimates that 1 million in-car video systems were sold in 2002 alone! And that number is expected to be even larger in 2003. Passengers in these vehicles are going to want something to watch. Satellite TV, with more than 300 channels of video, 35 to 50 channels of commercial-free music, and nationwide coverage is the perfect solution. KVH’s ultra-low profile TracVision A5 satellite TV antenna makes it possible.”

Vehicles equipped with TracVision A5 will be able to receive the same premium satellite TV service that is already enjoyed by more than 18 million households throughout the United States. The fully automatic antenna mounts to the roof rack of a passenger car, mini-van, or SUV, tracking the TV satellites and relaying the latest movies, breaking news, sports, business report, or children’s entertainment directly to the passenger video screens. Designed to be a component within the vehicle’s entertainment system, a single TracVision A5 antenna can support multiple video screens and receivers, allowing each passenger to watch their favorite programming whether it’s from the satellite, an onboard DVD player, Digital Video Recorder (DVR), or console game.

The result of more than two years of research and development, the 5-inch high TracVision A5 uses KVH’s revolutionary new phased-array technology to create an antenna with a rugged, flat design suitable for the family SUV, mini-van, or car at an affordable price. TracVision A5 is being introduced just as the backseat video entertainment market is taking off. Virtually every 2002 model SUV and mini-van offered rear-seat entertainment systems as options and the uptake has been tremendous, with 96% of Nissan Quests, 31% of Ford Expeditions, and 30% of Ford Windstars shipping with video systems, according to J.D. Power and Associates. According to the Wall Street Journal, eight 2003 vehicle models in the U.S. come with DVD players as standard onboard equipment, and DVD players are available as options in 70 other models (Wall Street Journal, 1/16/2003). Already, almost 50% of full-size SUV owners report that they plan to buy video systems in their next vehicle.

The opportunity to add live satellite TV on these screens using TracVision A5 has taken the industry by storm, creating tremendous interest among consumers, dealers, industry members, and the media. With a nationwide dealer network in place, orders being placed, and the first antenna shipment targeted for the end of June, KVH is ready to change how families and businesspeople stay connected and entertained while traveling.

“We’re seeing a tremendous amount of interest in TracVision A5 and live satellite TV in the car,” Dodez continued. “Families with small children, emergency and law enforcement agencies, and business travelers all recognize that live TV broadcasts can offer a level of versatility, information, and entertainment that radio just can’t match.”

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.

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