Release Details

MIDDLETOWN, R.I.--(BUSINESS WIRE)--April 20, 2000--KVH Industries, Inc. (NASDAQ:KVHI) today announced that it ended the company's first quarter of 2000 with yet another dramatic growth in communications sales. In addition to increasing 71 percent over the 1999 first quarter, combined revenues from the company's satellite television and telephony sales in 2000 were up more than 44 percent over the preceding 1999 fourth quarter.

"We continue to see sales of our TracVision(R) land and marine systems exceeding our expectations as new products are introduced," said Martin Kits van Heyningen, president and CEO. "Our land vehicle product line expanded during the quarter when we added a system for stationary use to the highly popular mobile system introduced last year. Our marine product line also advanced during the quarter, leapfrogging our competitors with two new systems that automatically deliver signals from both Digital Video Broadcasting and Digital Satellite System satellites. Consumer response to our products is providing clear evidence that the demand for mobile communications is increasing exponentially."

Total revenues for the first quarter were $5.7 million compared to $6.0 million in the 1999 period. The decline in overall revenues was due primarily to a $1.7 million decline in military orders, which resulted in lower overall navigation sales than expected. Cost of sales was flat at $3.8 million in both the 2000 and 1999 first quarters. Gross profits declined during the quarter to $1.9 million from $2.2 million and gross margin as a percentage of net sales decreased to 33 percent from 37 percent in 1999. Total operating expenses increased to $3.0 million from $2.6 million and the operating loss increased to $1.1 million from a $0.4 million loss in 1999. The net loss for the 2000 quarter was $0.9 million or $.12 a share compared to a net loss of $0.2 million or $.02 per share in 1999.

"We are beginning to see signs of recovery in our military and fiber optic sales," said Kits van Heyningen. "In the first quarter, we received a $1.4 million repeat order for our TACNAV(TM) TLS systems, and yesterday we announced that two major defense companies have ordered $1.2 million in fiber optic gyros. We anticipate that momentum in both these markets will increase as the military begins spending to upgrade its forces and as we increase the visibility of our fiber optic products in multiple OEM markets."

According to Richard Forsyth, chief financial officer, "We improved direct costs as a percentage of net sales during the quarter by four percent for communications systems and two percent for navigation products. Our increase in operations expense during the quarter is attributable in part to research and development efforts that we are supporting primarily with company funds. In addition, the number of new products we introduced during the first quarter required greater sales and marketing expenditures. The decrease in gross profit is related to increased manufacturing overheads and the shift in our product revenue mix, where communication sales are dominating higher-margin military sales."

KVH is webcasting its first quarter 2000 conference call live at 11:30 a.m. Eastern time today through the company's web site at http://www.kvh.com/company. The audio also will be archived at the company web site within three hours after the call is completed.

KVH Industries utilizes its proprietary fiber optic, autocalibration and sensor technologies to produce navigation and mobile satellite communications systems for commercial, military and marine applications. The company has headquarters in Middletown, RI, (USA) with offices in Illinois, Florida and Denmark.

This press release may contain certain forward-looking statements that involve risks and uncertainties. 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: failure to develop and market fiber optic products; lack of reliable vendors, service providers and outside products; continued poor military sales cycles; unforeseen changes in competing technologies and products; worldwide economic variances; and poor or delayed research and development results. Additional factors are discussed in the company's Annual Report on Form 10K filed with the Securities and Exchange Commission on March 27, 2000. Copies are available through the company's Investor Relations Department or web site. -0-

                  KVH Industries, Inc. and Subsidiary
                 Consolidated Statements of Operations
                              (Unaudited)

                                        Three months ending
                                              March 31,
                                         2000           1999

Net sales                            $5,696,515      5,973,170
Cost of sales                         3,818,276      3,769,758
 Gross profit                         1,878,239      2,203,412
Operating expenses:
Research and development              1,074,442        869,541
Sales and marketing                   1,418,388      1,152,731
Administration                          527,734        569,183
 Total operating expense              3,020,564      2,591,455
  Loss from operations               (1,142,325)      (388,043)
Other expense (income)                  207,541        (15,616)
  Loss before income taxes           (1,349,866)      (372,427)
Income tax benefit                      483,619        226,810
   Net loss                           $(866,247)      (145,617)
Per share information:
Loss per share - basic                   $(0.12)         (0.02)
Weighted average number of shares
 outstanding, basic                   7,435,915      7,205,928

                  KVH Industries, Inc. and Subsidiary
                      Consolidated Balance Sheets

                                        March 31, 2000   Dec. 31, 1999
                                          Unaudited)       (Audited)

Assets:
 Current assets:
  Cash and cash equivalents               $1,524,315       2,047,838
  Accounts receivable, net                 4,066,031       3,362,390
  Costs and estimated earnings
   in excess of billings on
   uncompleted contracts                     472,665         444,492
  Inventories                              3,257,743       3,672,269
  Prepaid expenses and other deposits        386,978         292,793
  Deferred income taxes                      376,628         376,628
   Total current assets                   10,084,360      10,196,410
  Property and equipment, net              7,063,955       7,227,778
  Other assets, less
   accumulated amortization                  805,945         839,113
  Deferred income taxes                    2,055,101       1,571,409
   Total assets                          $20,009,361      19,834,710
Liabilities and stockholders' equity:
 Current liabilities:
  Current portion long term debt             $77,378          75,643
  Accounts payable                         1,800,423       1,599,770
  Accrued expenses                         1,152,963         792,086
   Total current liabilities               3,030,764       2,467,499
  Long term debt                           2,851,769       2,865,232
   Total liabilities                       5,882,533       5,332,731
 Stockholders' equity:
  Common stock                                75,981          72,969
  Additional paid-in capital              16,055,964      15,567,880
  Accumulated deficit                     (2,005,117      (1,138,870
   Total stockholders' equity             14,126,828      14,501,979
    Total liabilities and
     stockholders' equity                $20,009,361      19,834,710
*T


    CONTACT: KVH Industries, Inc.
             Richard Forsyth, Chief Financial Officer
             or
             Alice Andrews, Director, Corporate Communications
             401/847-3327