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KVH Receives $7.1 Million Order for Fiber Optic Gyros Used in Remote Weapon Stations

The KVH DSP-3100 FOG used in Remote Weapon StationsRemote Weapon Stations Rely on KVH Fiber Optic Gyros


KVH's precision DSP-3100 FOGs to be employed for optical and targeting stabilization of vehicle-mounted remote weapons

MIDDLETOWN, RI – June 3, 2010 – KVH Industries, Inc., (Nasdaq: KVHI) announced today that it has received a new $7.1 million order from a major defense contractor for fiber optic gyros (FOGs) to employ in remote weapons stations (RWS). Remote weapon stations allow gunners to operate, aim, and fire the weapon from inside the safety of their vehicles, taking the gunners out of turret positions where they are exposed to hostile fire. KVH’s FOGs provide precise optical stabilization and weapon recoil control for RWS units while ensuring that the weapon stays on target whether the vehicle is stationary or on the move.

“KVH’s FOGs are ideally suited for RWS applications,” explained Jay Napoli, KVH’s vice president of FOG and OEM sales. “They have very wide bandwidth, and are extremely accurate and durable thanks to their all-fiber, ruggedized design. The result is a precision sensor capable of providing the hundreds of measurements per second to track and respond to the movements caused by the vehicle and the shock of the weapon firing.”

The world’s biggest customer for remote weapons stations is the U.S. Army, which has ordered more than 10,000 systems for use on many of its combat vehicles in a program called the Common Remotely Operated Weapons Station (CROWS). The CROWS is a three-axis stabilized mount equipped with a sensor suite and fire control software, allowing on-the-move target acquisition and first-burst target engagement. Capable of target engagement under day and night conditions, the CROWS sensor suite includes a daytime video camera, thermal camera, and laser rangefinder, all of which are stabilized by KVH FOGs. A number of foreign militaries have also adopted similar weapon stations for their tactical vehicles.

“We are very pleased to continue our work to make remote weapon stations available to U.S. and allied soldiers around the globe. This new order, together with our unmatched track record of timely delivery of fiber optic gyros, firmly establishes KVH as the industry’s leading source for the precision sensors required for remote weapon stations. In addition, our state-of-the-art manufacturing facility in Chicago, IL, is geared for high-volume production so that we’re able to offer our OEM customers exceptional quality at very reasonable prices,” Napoli added.

KVH supplied the fiber optic gyros to Recon Optical for the U.S. Army’s original CROWS program in 2005, and later won a contract with Kongsberg for the CROWS II program. The U.S. Army has announced a planned CROWS III program that may add an additional 19,000 RWS systems to its inventory. KVH is currently working on the development of new, smaller, lower cost designs that it believes will be particularly well suited for the CROWS III program.

The company did not disclose the customer for its latest order, although it does plan to complete the order by the end of 2010.

KVH’s fiber optic guidance and sensor systems are used in an array of commercial and defense-related stabilization, navigation, autonomous vehicle, and precision guidance applications.

About KVH Industries, Inc.

KVH Industries is a leading manufacturer of solutions that provide global high-speed Internet, television and voice services via satellite to mobile users at sea, on land, and in the air. KVH is also a premier manufacturer of high performance sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. The company is based in Middletown, RI, with facilities in Tinley Park, IL, Kokkedal, Denmark, 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; and customer preferences, requirements and expectations. The actual results could differ materially. Factors that may cause such differences include, among others, delays in customers' qualification processes for our products or other delays in shipping, 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-Q filed with the SEC. KVH does not assume any obligation to update its forward-looking statements to reflect new information or developments.

KVH is a registered trademark of KVH Industries, Inc.

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