KVH Receives $1.2 Million in Orders for Fiber Optic Gyro Systems.

MIDDLETOWN, R.I. -- KVH Industries, Inc., (Nasdaq: KVHI) announced today that it has received $1.2 million in new orders for its high-performance fiber optic gyro (FOG) systems. The FOGs included within these orders will be used to provide support for a range of defense-related applications, including stabilization and pointing of remote gun turrets and precision navigation and guidance. These orders are largely scheduled for shipment in 2005.

"The steady growth in orders and backlog for our fiber optic product line clearly illustrates the success we are achieving as we strengthen our foothold in the military and commercial marketplaces," commented Dan Conway, vice president of business development. "Our fiber optic solutions offer a compelling combination of affordability, precision, accuracy, and durability, each of which is critical for success in new applications as well as for use as form, fit, and function replacements for existing mechanical or higher-cost fiber optic gyros."

KVH FOG products, such as the DSP-3000 FOG and TG-6000 inertial measurement unit (IMU), are used in diverse commercial and defense-related applications. Military applications include IMUs for torpedoes, precision tactical navigation systems for military vehicles, and image stabilization and synchronization for shoulder- or tripod-mounted weapon simulators. Platforms that depend on KVH FOGs include the U.S. Army Ground Prophet next-generation signal intelligence vehicle; the Javelin, Stinger, and ITAS weapons training simulators; stabilization systems for naval radar and missile defense systems, among others. KVH FOGs have also been used in such commercial applications as train location control and track geometry measurement systems, industrial robotics, stabilization of TV cameras, and KVH's own premier TracVision G8 mobile satellite TV antenna.

KVH digital signal processing (DSP) FOGs employ an all-fiber design that ensures high reliability, superior performance, and exceptional vibration, shock, and acceleration performance and survivability. They deliver precision stabilization and tracking capabilities for turret, antenna, and optical stabilization systems. With no moving parts to maintain or replace, KVH's DSP FOGs last longer than mechanical gyros, perform better, and can yield a significantly lower lifetime cost. KVH's DSP electronics improve performance in such critical areas as scale factor and bias versus temperature, scale factor linearity, turn-on to turn-on repeatability, and maximum input rate. The breakthrough DSP design (covered by multiple patents, including U.S. Patent #6,429,939, "DSP Signal Processing for Open Loop Fiber Optic Sensors") overcomes the limitations of analog signal processing, virtually eliminating temperature-sensitive drift and rotation errors.

Complete details regarding KVH's family of fiber optic products are available at http://www.fiberopticgyro.com.

Note to Editors: High-resolution images of the DSP-3000 and other KVH fiber optic gyro products are available for download and editorial use at http://www.kvh.com/mediasupport.

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; competitive position and capabilities, 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.