KVH Receives $1 Million to Integrate TACNAV with U.S. Army Digital Battlefield Program.

MIDDLETOWN, R.I. -- Engineering Contract to Expand Capabilities and Facilitate Use of TACNAV M100 GMENS Aboard Wider Group of Military Vehicles

KVH Industries, Inc. (Nasdaq: KVHI) today announced that it has been awarded $1 million in engineering funding by the U.S. Army Special Operations Command (SOCOM) to expand the ability of KVH's TACNAV M100 GMENS navigation system to connect with the U.S. Army's FBCB2 digital battlefield system. Doing so will enable vehicles equipped with the TACNAV M100 GMENS, or Ground Mobility Enhanced Navigation System, to provide real-time, unjammable navigation and position data through the secure digital battlefield system to other friendly units, field commanders, and U.S. military command and control centers.

"We are seeing a growing desire within the U.S. military for its vehicles to connect to the FBCB2 digital battlefield and provide real-time position data that will improve both the overall situational awareness among troops and commanders as well as interoperability between U.S. and allied troops," remarked Dan Conway, KVH's vice president for business development. "Our TACNAV M100 GMENS is an ideal and affordable means of making this critical information available for a broad range of military vehicles."

KVH previously demonstrated its ability to integrate its TACNAV TLS system with the FBCB2 system aboard the U.S. Army's Bradley Fighting Vehicle. This new engineering contract is focused on enhancing TACNAV's integration capabilities and extending them to the TACNAV M100 GMENS system.

"A TACNAV M100 GMENS system with a robust, reliable interface to digital battlefield systems like FBCB2 will offer military planners and program managers a low-cost, extremely reliable solution to both the demand for always-available vehicle navigation and position data and the need for that information to be disseminated throughout the fighting force," concluded Conway. "This expansion of our system capabilities could potentially facilitate the fielding of the TACNAV M100 GMENS beyond the U.S. SOCOM vehicle fleet and across a wider population of U.S. Army and allied vehicles."

The TACNAV M100 GMENS, already in full production for U.S. SOCOM, was most recently used during Operation Iraqi Freedom. While the TACNAV M100 GMENS complements the Global Positioning System (GPS), it operates independently of GPS thanks to the use of KVH's digital compass technology and proprietary software algorithms. As a result, the TACNAV M100 GMENS continues to provide navigation, position, and heading data to the digital battlefield system, even if GPS is blocked, jammed, or is otherwise unavailable. 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, Malaysia, and Italy.

Complete details regarding KVH's TACNAV product line are available at http://www.kvh.com. High-resolution images of the TACNAV M100 GMENS and its applications are available at http://www.kvh.com/press.

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 and military navigation product manufacturing facility in Tinley Park, Illinois, and a European sales, marketing, and support office in Kokkedal, Denmark.

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. 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.