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KVH mini-VSAT Broadband Network has the largest market share ‒ Euroconsult Report

04.03.12

New “Maritime Telecom Solutions by Satellite” report concludes KVH is now the maritime VSAT market share leader with more users than any other network

MIDDLETOWN, RI – April 3, 2012 –Launched in late 2007, the mini-VSAT Broadbandsm service from KVH Industries, Inc. (Nasdaq: KVHI) has quickly grown to become the world’s leading maritime VSAT network, according to a new industry research report from Euroconsult, the leading international research and analysis firm specializing in the satellite and space sectors. In “Maritime Telecom Solutions by Satellite, Global Market Analysis & Forecasts,” Euroconsult estimates at the end of 2011, KVH’s mini-VSAT Broadband service accounted for 16% of an estimated market of just under 9,000 activated maritime VSAT terminals. KVH’s market share was reported to be 20% higher than the next closest competitor.

To date, more than 2,000 KVH TracPhone® systems have been shipped for the mini-VSAT Broadband service, which KVH believes is far more than any other maritime VSAT solution. KVH reported in its 2011 year-end investor conference call that its maritime VSAT revenues grew by more than 60% in 2011. Euroconsult estimates the overall maritime VSAT market has grown at a rate of 15% per year since 2008, and that by the end of 2021 maritime VSAT services will account for 55% of a $1.7 billion maritime communications market.

“Our strategy from the launch of the mini-VSAT Broadband service four and a half years ago has been to create a single global satellite communications network that delivers very fast, very high quality, reasonably priced broadband service to all types of vessels, using onboard terminals that were small and easy to install,” commented Martin Kits van Heyningen, KVH’s CEO. “Our initial market research clearly showed that customers using maritime L-band services felt the costs were prohibitively expensive for their networking requirements, and that the older maritime VSAT technology wasn’t ideal due to the expense of installing large antennas. We’ve leveraged a new generation of spread spectrum technology to bring our customers the best of all worlds – fast, high quality, global multimegabit service delivered to small, affordable onboard terminals. It’s exciting both to have accelerating sales and to be acknowledged as being in the leadership position in the growing maritime VSAT market.”

KVH’s mini-VSAT Broadband network was designed from the ground up to be a new generation maritime satellite communications solution. Unlike older maritime VSAT services using time division multiple access (TDMA) technology, which was originally designed for stationary land use, the KVH service relies on state-of-the-art ArcLight® spread spectrum technology provided by KVH’s partner ViaSat (Nasdaq: VSAT), which was developed specifically for mobile use. The spread spectrum technology enables KVH to use antennas for its mini-VSAT Broadband service that are 85% smaller than TDMA VSAT antennas, while providing similar speed and coverage, thereby reducing the capital equipment and installation costs for maritime customers. The service is very fast, providing Internet downloads as fast as 4 Mbps, and has significantly lower latency (time delays) in data transmissions, making it ideal for new cloud-based applications being adopted by leading ship management companies.

To build its global network, KVH has taken advantage of new commercial satellite coverage over the oceans to create a seamless web of multi-megabit service. Fourteen Ku-band satellite transponders are already online, creating one of the widest Ku-band networks in the industry. The company’s TracPhone V3, with a 37 cm antenna, and its enterprise-grade TracPhone V7, which uses a 60 cm antenna, provide service throughout the Ku-band portion of the network. Earlier this year KVH announced that three global C-band transponders will be added, providing an overlay on the Ku-band service that together will cover 95% of the earth, including all of the world’s major shipping lanes, fishing regions, and offshore oil fields. The company’s new TracPhone V11 dual mode system will be able to seamlessly switch between C and Ku-band service.

KVH is the only maritime VSAT provider to manufacture its own fully integrated onboard terminal, own and operate a global VSAT network, and provide worldwide 24/7/365 after-sale support. In 2010, the company acquired the Norwegian maritime network management company Virtek, and has incorporated their CommBox™ ship/shore network manager into the end-to-end TracPhone solution for the mini-VSAT Broadband service. KVH’s mini-VSAT Broadband service delivered more than 100 terabytes of data in 2011 and more than two million voice calls, and had a network uptime of 99.5%, which is among the best in the industry.

Full details of the KVH mini-VSAT Broadband service and the TracPhone V-series product line are available on the company’s website, www.minivsat.com.

About KVH Industries, Inc.

KVH Industries, Inc., is the leading provider of in-motion satellite television 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. The company is based in Middletown, RI, with facilities in Illinois, Denmark, Norway, and Singapore.

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-K filed with the SEC. KVH does not assume any obligation to update its forward-looking statements to reflect new information or developments.

KVH, TracPhone, and CommBox are trademarks of KVH Industries, Inc. “mini-VSAT Broadband” is a service mark of KVH Industries, Inc. All other trademarks are the property of their respective companies.

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