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Vadero Ship Management Using KVH TracPhone V7 to Cut Communications Costs

09.23.08

TracPhone V7 and mini-VSAT Broadband offer flexible, affordable business communications at sea and enables future crew communications

SMM, Hamburg – September 23, 2008 – Businesses around the globe are working to balance cost with performance in many areas, including communications, and shipping companies are no different. However, conducting business aboard a fleet of tankers, often thousands of miles away from each other and from offices on shore, brings its own challenges. That’s why Vadero Ship Management, Inc., based in Sweden, turned to KVH Industries, Inc., (Nasdaq: KVHI) and its TracPhone® V7 with mini-VSAT Broadbandsm service to reduce business communications costs and offer their crews faster, more affordable data connections.

The initial TracPhone V7 installation took place on the M/T Primula, which was already equipped with a diverse communications suite, including Inmarsat C, mini-M, and GSM cellular systems. However, Vadero was looking for a complementary system that offered significantly faster data speeds, lower data costs, and versatile telephone service in all areas of the ship while providing reliable service for business communications between the crew and offices on shore.

In addition to meeting these requirements, Vadero also required a small system that would be simple to install, with minimum impact on the ship’s operations. The TracPhone V7 fit the bill, offering significant savings in installation costs. “The installation was performed by the vessel’s chief engineer and electrician,” says Eddie Kristensson, personnel/purchase manager for Vadero. “Since the antenna is so small, we were able to install and commission it during the vessel’s normal operation. We had it delivered and activated onboard in less than 48 hours.”

The company also uses the TracPhone V7 as part of a telephone system that allows the Master to make and receive calls from colleagues on shore at all times, regardless of where he is working. “It does not matter if he is on the bridge, in the mess room, or even in the engine control room,” says Kristensson. “This gives us a very flexible system that can also be used by the chief engineer to obtain technical assistance via telephone from the control room, where no GSM phone will ever work.”

In light of the system’s success, Vadero is now considering installing TracPhone V7 systems on new vessels, as well as opening them up to crew telephone and Internet use, an attractive benefit for crew recruitment and retention.

The TracPhone V7, a rugged, 60 cm (24") antenna, delivers mini-VSAT Broadband service with data rates as fast as 2 Mbps shore-to-ship and 512 Kbps ship-to-shore. A fraction of the size of standard 1-meter VSAT systems, the TracPhone V7 (and its fully integrated below-decks modem and control unit) offers easy connections to shipboard networks, fully stabilised tracking, and a significant reduction in hardware and installation costs, without compromising performance.

“Our TracPhone V7 is the perfect solution to the challenges Vadero faced for communications aboard the Primula, and we couldn’t be happier with the support given to the customer by our Swedish distributor Cordland AB and the speedy installation and final results achieved,” says Svend Lykke Larsen, KVH Europe’s director of sales. “Reliable broadband connections are crucial in the maritime industry, for business efficiency as well as crew morale. KVH is able to offer a comprehensive commercial solution for broadband Internet, telecommunications, and digital satellite television services, linking vessels and crews to the world around them.”

For more information about Vadero’s TracPhone V7 installation, download KVH’s new case study, “Vadero Cuts Costs, Enables Future Crew Communications with TracPhone V7 and mini-VSAT Broadband” from http://www.kvh.com/whitepapers or visit http://www.minivsat.com.

About KVH Industries

Middletown, RI-based KVH Industries, Inc., and its wholly owned subsidiary, KVH Europe A/S, are leading providers of in-motion satellite TV and communications systems, having designed, manufactured, and sold more than 150,000 mobile satellite antennas for applications on vessels, vehicles, and aircraft. KVH’s mission is to connect mobile customers around the globe with the same digital television entertainment, communications, and Internet services that they enjoy in their homes and offices.

This release may contain certain forward-looking statements that involve risks and uncertainties. Forward-looking statements include, 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 materially. Factors that may cause such differences include, among others, those discussed in KVH’s most recent Form 10-Q filed with the SEC. KVH assumes no obligation to update its forward-looking statements to reflect new information or developments.

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