KVHI KVH Industries Inc

Wolf Haldenstein Adler Freeman and Herz LLP Commences Class Action Lawsuit on Behalf of KVH Industries, Inc. Shareholders NEW YORK, Aug. 16 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the District of Rhode Island, on behalf of all persons who purchased or otherwise acquired the securities of KVH Industries, Inc. ("KVH" or the "Company") (NASDAQ:KVHI) between October 1, 2003 and July 2, 2004, inclusive, (the "Class Period") against defendants KHV and certain officers and directors of the Company. The case name is Horner v. KVH Industries, Inc., et al. A copy of the complaint filed in this action is available from the Court, or can be viewed on the Wolf Haldenstein Adler Freeman & Herz LLP website at http://www.whafh.com/cases/kvh.htm . The complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities. The complaint further alleges that the statements defendants made during the Class Period were materially false and misleading when made because they failed to disclose or indicate the following: (a) the Company had artificially inflated its third and fourth quarter earnings by stuffing distribution and inventory channels with overpriced TracVision A5 systems. Consequently, the Company was forced to reduce the TracVision A5's retail price and, effectively, refund millions of dollars in purported sales revenues to its retail dealers in the form of "vendor purchase commitment charges" in order to promote sell-through of TracVision retail channel inventory; (b) the Company had not achieved any material cost reduction in the manufacturing of the TracVision A5 and would be forced to write-down its inventory of manufactured goods by millions of dollars; (c) KVH's retail marketing and sales programs purportedly aimed at the sell-through market for the TracVision A5 were ineffective because the A5 was overpriced, causing the company to incur extra expenses and increased losses as inventories of unsold TracVision systems continued to grow through the Class Period which would have to be written down; (d) at the suggested retail price of $3,495, the TracVision A5 was priced too high for its intended market and, therefore, there was no reasonable basis for defendants' projected annual sales of 9,000 to 10,000 units; (e) TracVision production and other related costs were so high that any price reduction would reduce margins to the extent that the product could not be sold profitably; (f) the cost reduction program was flawed and defendants were not able to control production and marketing costs; (g) as a result of the above, the defendants' opinions, projections, and forecasts concerning the Company and its ability to successfully market the TracVision A5 lacked any reasonable basis when made. If you purchased or otherwise acquired KVH securities during the Class Period, you may request that the Court appoint you as lead plaintiff by September 20, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff". Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wolf Haldenstein, or other counsel of your choice, to serve as your counsel in this action. Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 60 attorneys in various practice areas; and offices in Chicago, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation. If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., Gregory M. Nespole, Esq., Christopher S. Hinton, Esq., George Peters or Derek Behnke), via e-mail at or visit our website at http://www.whafh.com/ . All e-mail correspondence should make reference to KVH. DATASOURCE: Wolf Haldenstein Adler Freeman & Herz LLP CONTACT: Fred Taylor Isquith, Esq., or Gregory M. Nespole, Esq., or George Peters, or Derek Behnke, all of Wolf Haldenstein Adler Freeman & Herz LLP, 1-800-575-0735, Web site: http://www.whafh.com/ http://www.whafh.com/cases/kvh.htm

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