KVHI KVH Industries Inc

KVH Moving Ahead to Support Automotive OEM Factory Integration with Patented Hybrid Phased-array Technology and In-roof Installation Design KVH Industries, Inc., (Nasdaq: KVHI) brought live satellite TV programming one step closer to being a factory-installed reality today when it unveiled an embedded automotive TracVision(R) system today at the Specialty Equipment Market Association (SEMA) trade show in Las Vegas, Nevada. Using the same patented hybrid phased-array antenna technology found in the aftermarket TracVision A5, the new embedded automotive TracVision system provides in-motion reception of the DIRECTV(R) TOTAL CHOICE(R) MOBILE satellite TV programming package on open roads throughout the United States. To achieve its ultra-low profile, the embedded TracVision is installed within the vehicle's headliner and its sleek cover remains hidden below the level of the roof rack, making it the lowest profile automotive satellite TV system available. The system is intended to support volume OEM and special program vehicle applications exclusively and will not be available for aftermarket purchase. "The embedded TracVision system is the latest step in our efforts to expand our award-winning and consumer-proven TracVision family beyond the automotive aftermarket and into the support of OEM applications in the near-term," declared Martin Kits van Heyningen, KVH's president and chief executive officer. "We've received very positive feedback from automakers following demonstrations of the limo-based prototype we unveiled in cooperation with Cadillac in March 2005 as well as initial evaluations of a number of automotive beta units that we provided to OEMs for initial evaluations. Based on our progress and the feedback to date, we are now ready to move ahead and begin supporting factory integration of mobile satellite TV systems." Making the embedded automotive TracVision system ready for factory installation will take time and close cooperation between KVH and its OEM customers, explained Robert Riedford, KVH's director of business development for satellite products. "Due to the wide range of vehicle roof designs, environmental requirements, and performance standards, there is no such thing as a generic, 'one-size-fits-all' in-roof satellite TV solution. We intend to work with OEM customers to define the unique specifications and requirements necessary to tailor the embedded TracVision to their specific vehicle applications." The embedded automotive TracVision is based on the same low-profile antenna technology used in the award-winning TracVision A5, which has been available in the aftermarket for more than two years at more than 800 retail locations around the United States. Earlier this year, Cadillac announced that it had approved the TracVision A5 as an aftermarket accessory to be sold through its dealers nationwide, and Avis Rent a Car is offering the TracVision A5 and DIRECTV service on Hummer H3s based in Phoenix, Arizona. Passenger entertainment is now among the most popular automotive accessories on the market today, with more than one-third of 2004 model year SUVs and minivans sold in the U.S. equipped with in-vehicle video screens, according to J.D. Power and Associates. Industry analyst Frost & Sullivan projects that by 2011, more than 3 million vehicles will be equipped with mobile satellite TV systems. For complete details regarding KVH's TracVision line of mobile satellite TV systems, visit http://www.tracvision.com. NOTE TO EDITORS: High-resolution, press-ready images of the embedded automotive TracVision and other TracVision systems are available for download and editorial use at http://www.kvh.com/mediasupport. KVH Industries, Inc., is the leading provider of in-motion satellite systems, having designed, manufactured, and sold more than 75,000 mobile satellite antennas for applications on boats, RVs, trucks, buses and automobiles. Winner of the prestigious General Motors Innovative Design Award, CES Innovation Award, and a finalist for the Automotive News PACE Award, KVH's mission is to connect mobile customers with the same digital television entertainment, communications, and Internet services that they enjoy in their home and offices. 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, our dependence on the availability of third-party satellites, which face significant operational risks and could fail earlier than their expected useful lives, for our mobile satellite communication services; the inability to properly customize embedded TracVision to suit the installation, performance, and cost requirements for OEM vehicle programs; widespread consumer demand for satellite TV service in cars fails to develop; as well as 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.