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KVH Extends and Expands Free Airtime Offer for Inmarsat A Users Upgrading to Fleet F77

04.19.04

Limited Time Offer Helps to Ease Transition to New Satcom System as Inmarsat Prepares to Eliminate Global Inmarsat A Service

MIDDLETOWN, RI – April 19, 2004 – After decades of reliable, global operation, the Inmarsat A satellite communications service will be phased out by 2007. To ensure that Inmarsat A customers can stay connected, KVH Industries (Nasdaq: KVHI) is making it easier and even more affordable to transition to the new, more efficient, and powerful Inmarsat Fleet F77 service by offering $3,000 in free Fleet airtime to Inmarsat A users who activate their Fleet F77 service through KVH. This promotion, which began on April 1, 2003, has been extended and will run through December 31, 2004, or until the available upgrade packages are claimed. To qualify for the $3,000 in free airtime, current Inmarsat A owners must activate their new Inmarsat Fleet F77 service through KVH Industries before December 31, 2004. Customers taking advantage of this trade-in promotion will equip their vessel with the most versatile and modern satellite communications service available today. Inmarsat’s Fleet F77 service is fully compatible with the KVH Tracphone® F77.

“Inmarsat A was launched 20 years ago and has been a reliable service in the world of maritime satellite communications,” remarked Ian Palmer, KVH vice president of satellite sales. “However, the time has come to phase out this service and replace it with more advanced digital technology. The Fleet service, with its modern, high-speed digital data connections and low-cost voice service, offers mariners a more powerful and versatile tool for shipboard communications worldwide. This upgrade promotion will reduce ship owners’ and fleet managers’ transition costs as they begin the necessary shift from Inmarsat A to Fleet. Tracphone F77 will also be fully compatible with Inmarsat’s next-generation satellites, ensuring that this investment will continue to pay dividends for many years in the future.”

Tracphone F77 and the Fleet service offer five communications options to suit a variety of requirements:
• pay-by-the-bit Mobile Packet Data Service (MPDS);
• pay-per-minute mobile Integrated Services Digital Network (ISDN);
• affordable, low-cost voice service;
• high-speed, optimum quality voice service; and
• 3.1 kHz audio.

Designed for data transmissions, MPDS is perfect for receiving e-mail, logging onto and working within a company intranet, or browsing the web. And with its pay-by-the-bit pricing, users are charged only for the amount of the data sent and received, not by connection time. As a result, vessels can remain connected via e-mail or the Internet 24 hours a day, 7 days a week at no additional cost. The high-capacity mobile ISDN channel provides a constant data stream at speeds as fast as 64 Kbps, making generation-4 fax service, video conferencing, and transmitting large files and images, fast and easy. With KVH’s Velocity™ Acceleration data compression software, data rates can reach 256-320 Kbps. The system’s transceiver serves as the hub for all online communication via the ship’s telephone networks and fax machines and can link all shipboard computers to onshore web-based systems, including e-mail and Internet services.

Complete promotional details, trade-in terms and conditions, and the Fleet F77 $3,000 Free Airtime Promotion Activation Form are available at www.kvh.com/trac_offer.

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

This release may contain certain forward-looking statements that involve risks and uncertainties. Forward-looking statements address, for example, the functionality, characteristics, quality and performance of KVH's products and technology; anticipated innovation and product development; and customer preferences, requirements and expectations. The actual results could differ. Factors that may cause such differences include, among others, those discussed in KVH's most recent Form 10-K filed with the SEC. KVH assumes no obligation to update its forward-looking statements to reflect new information or developments.

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