KVH Receives 5-year Sole-source Contract from U.S. Military.

Contract from U.S. Army Tank and Automotive Command is for KVH's TACNAV Navigation Systems and is Potentially Worth $11.5 Million

MIDDLETOWN, R.I. -- KVH Industries, Inc., (Nasdaq: KVHI) announced today that it has received a sole-source contract from the U.S. Army Tank and Automotive Command (TACOM) for the purchase of KVH's TACNAV([R]) vehicle navigation systems for use on U.S. Army combat vehicles. The contract is potentially worth $11.5 million over five years.

"This new sole-source contract is a reaffirmation of the value TACNAV offers U.S. and allied warfighters through its ability to consistently support applications in a wide range of demanding military environments, including vehicle navigation, integration with digital battlefield management systems, and precision stabilization and pointing," said Dan Conway, vice president of business development for KVH Industries. "We look forward to continuing our long-standing relationship with TACOM as well as the ongoing opportunity to ensure that U.S. servicemen and women have the critical navigation and guidance capabilities necessary to enable them to carry out their missions quickly and effectively, and then come home safely."

KVH's TACNAV military vehicle navigation systems provide unjammable, precision navigation, heading, and pointing data for vehicle drivers, crews, and commanders. TACNAV can also serve as a link between each vehicle and the overall digital battlefield, 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 to many allied customers, among them Canada, Sweden, Great Britain, Germany, Spain, Australia, New Zealand, Saudi Arabia, Taiwan, Malaysia, Switzerland, and Italy.

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

Complete details regarding KVH's defense navigation and guidance products are available at http://www.tacnav.com.

Note to editors: High-resolution images of KVH's defense navigation products are available at http://press.kvh.com for download and editorial use.

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-Q 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.