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U.S. Marine Corps Places $1.25 Million Order for KVH TACNAV Navigation Systems


TACNAV Light Systems to be Fielded Aboard Additional U.S. Marine Corps Amphibious Assault Vehicles

MIDDLETOWN, R.I.--(BUSINESS WIRE)--Nov. 20, 2003--KVH Industries, Inc., (Nasdaq: KVHI) announced today that the U.S. Marine Corps has placed a $1.25 million order for KVH's TACNAV(R) Light navigation systems, enabling the Marine Corps to expand the use of precision navigation systems aboard its AAV-7 amphibious assault vehicles. An additional $0.5 million order for the company's tactical navigation displays was also received from the U.S. Army Tank-Automotive and Armaments Command.

"Since 1988, KVH has worked closely with the U.S. Marine Corps to ensure that its troops and vehicles like the AAV-7 have the finest navigation systems available," said Dan Conway, vice president of business development. "Our TACNAV family has proved its worth to U.S. and allied troops during the last decade, most recently in Afghanistan and Operation Iraqi Freedom. With products like the U.S. Army type-classified M100 GMENS - the successor to TACNAV Light - and our other systems, KVH is helping to ensure that U.S. Marine Corps, Army, Navy, and allied vehicles and crews have the capabilities they need to carry out their mission and come home safely."

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 U.S. Marine Corps AAV-7s. Since that time, those original digital compasses have been in the process of being upgraded to the TACNAV Light system. These TACNAV Light-equipped U.S. Marine Corps AAV-7s have seen extensive operational and combat use, most recently during Operation Iraqi Freedom. TACNAV systems are also being used on allied AAV-7 vehicles. Most recently, United Defense LP placed a small initial order for TACNAV systems on behalf of the Republic of Taiwan to equip Taiwan's new AAV-7 fleet beginning in 2004.

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. TACNAV systems have been sold for use aboard U.S. Army, Marine Corps, and Navy vehicles as well as to many allied countries, including Canada, Sweden, Britain, Germany, Spain, Australia, New Zealand, Saudi Arabia, Taiwan, and Italy. 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. Special Operational Command. The German Army has also designated the M100 GMENS 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-certified 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, the intended use of KVH's products, 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; changes in competing technologies and products; changes or cancellation of orders received, 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, KVH assumes no obligation to update its forward-looking statements to reflect new information and developments.

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