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KVH Receives $6 Million Contract for Military Navigation Systems from European Customer


MIDDLETOWN, R.I.--(BUSINESS WIRE)--April 17, 2007--KVH Industries, Inc., (Nasdaq: KVHI) announced today that it has received a new contract from a European defense contractor for the purchase of KVH's TACNAV(R) II fiber optic gyro (FOG)-based vehicle navigation systems and displays for use on new infantry fighting vehicles. If all options are exercised, the contract will have a total value of more than $6 million with shipments starting in 2007 and extending through 2014.

Commenting on the new contract, Dan Conway, KVH's vice president of business development, said, "Thanks to its integrated KVH fiber optic gyros, our TACNAV II system offers vehicle crews and combat commanders a powerful tool for unjammable navigation as well as full integration with the increasingly robust digital battlefield. This is a field-proven system and one our customers have confidence in, as illustrated by this new contract, which will run in parallel with another long-term TACNAV II contract received from the same European contractor in 2001."

KVH's TACNAV II is a FOG-based tactical navigation system for vehicles that combines GPS position data with inputs from its fiber optic gyro, optional digital compass, and the vehicle's odometer to provide unjammable, precision navigation, heading, and pointing data for vehicle drivers, crews, and commanders. TACNAV II also offers a link between each vehicle and the customer's Battle Management System (BMS), making each unit a node in a secure military network that consolidates a wide range of tactical data to provide detailed information to individual units and military commanders.

TACNAV systems are currently in use on U.S. and allied vehicles participating in ongoing operations in Iraq and elsewhere. Military forces fielding TACNAV include the U.S. Army, Marine Corps, and Navy as well as many allied customers, among them Canada, France, Sweden, Great Britain, Germany, Spain, Australia, New Zealand, Saudi Arabia, Taiwan, Malaysia, Switzerland, and Italy.

Due to contractual restrictions, additional details regarding the customers and vehicle platforms cannot be disclosed at this time.

Visit for complete details regarding KVH's defense navigation and guidance products.

About KVH Industries, Inc.

KVH Industries, Inc., is a premier manufacturer of systems to provide access to live mobile media ranging from satellite TV to telephone and high-speed Internet for vehicles and vessels as well as a leading source of navigation, pointing, and guidance solutions for maritime, defense, and commercial applications. The company's products are based on its proprietary mobile satellite antenna and fiber optic technologies. An ISO 9001-certified company, KVH is based in Middletown, Rhode Island.

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; and customer preferences, requirements and expectations. The actual results could differ materially. Factors that may cause such differences include, among others, uneven military sales cycles, changes in military fielding and equipment requirements, and changes in international situations, as well as 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 and TACNAV are registered trademarks of KVH Industries, Inc. All other trademarks are the property of their respective companies.

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