KVH Receives $1.9 Million Order for TACNAV Military Navigation Technology

KVH Industries, Inc., (Nasdaq: KVHI) announced today
that it has received a new order worth approximately $1.9 million from
a defense prime contractor for elements of its TACNAV(R) military
vehicle navigation system. The TACNAV components included within the
order will be used to upgrade KVH's TACNAV navigation systems already
in the field, allowing the navigation system to connect with the U.S.
Army's FBCB2 digital battlefield system. The company expects to
recognize all of the revenue from this contract in 2005.
   "Our defense navigation business remains a significant strategic
area for KVH both through new sales and, in the case of this recent
order, ongoing component sales to support expanded operational
capabilities and ongoing fielding requirements with our existing
customers," said Dan Conway, vice president of business development
for KVH Industries. "TACNAV has consistently proven its ability to
support applications in demanding military environments, including
vehicle navigation, integration with digital battlefield management
systems, and precision stabilization and pointing."
   Due to contractual restrictions, additional details regarding the
customer cannot be disclosed.
   KVH's TACNAV military vehicle navigation systems employ KVH's
digital compass and fiber optic gyro (FOG) technology as well as
proprietary software algorithms to provide uninterrupted navigation,
heading, and pointing data for vehicle drivers, commanders, and crews.
While TACNAV complements GPS, its self-contained sensors operate
independently of GPS. As a result, TACNAV continues to provide
mission-critical data for troops in the vehicle as well as to the
digital battlefield system, even if GPS is blocked, jammed, or is
otherwise unavailable. 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.
   KVH TACNAV navigation systems are currently in use on U.S. and
allied vehicles participating in ongoing operations in Iraq. TACNAV
systems have been sold for use aboard U.S. Army, Marine Corps, and
Navy vehicles as well as to many allied customers, including Canada,
Sweden, Great Britain, Germany, Spain, Australia, New Zealand, Saudi
Arabia, Taiwan, Malaysia, Switzerland, and Italy.
   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 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 press release may contain certain forward-looking statements
that involve risks and uncertainties. For example, the statements
regarding the company's financial goals for 2005 are forward-looking
statements. The actual results realized by the company could differ
materially from the statements made herein. Factors that might cause
such differences include, but are not limited to: lack of reliable
vendors, service providers, and outside products; uneven military
sales cycles and changes in procurement priorities; the ability of the
government and its contractors to cancel orders at their convenience;
unforeseen changes in competing technologies and products; and
worldwide economic variances. Additional factors are discussed in the
company's most recent Form 10-K, filed with the SEC on March 16, 2005.
Copies are available through the company's Investor Relations
department and web site, www.kvh.com. KVH assumes no obligation to
update its forward-looking statements to reflect new information and
developments.