Lerach Coughlin Stoia & Robbins LLP Files Class Action Suit against KVH Industries, Inc.

NEW YORK--July 21, 2004--Lerach Coughlin Stoia & Robbins LLP (http://www.lcsr.com/cases/kvh/) today announced that a class action has been commenced in the United States District Court for the District of Rhode Island on behalf of purchasers of KVH Industries, Inc. ("KVH" or the "Company") publicly traded securities during the period between January 6, 2004 and July 2, 2004 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from July 21, 2004. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, Samuel H. Rudman or David A. Rosenfeld of Lerach Coughlin Stoia & Robbins LLP at 800-449-4900 or via e-mail at wsl@lcsr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lcsr.com/cases/kvh/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges KVH and certain of its officers and directors with violations of the Securities Exchange Act of 1934. KVH describes itself as a designer, manufacturer and marketer of mobile satellite communications products for the automotive/recreational vehicle/marine markets and navigation, guidance and stabilization products for defense markets.

The complaint alleges that, throughout the Class Period, defendants issued materially false and misleading statements regarding KVH's increasing financial results and the strong demand for its newly developed TracVision A5 and G8 satellite TV systems (the "TracVision systems"). As alleged in the complaint, these statements were materially false and misleading because they failed to disclose, among other things: (a) that defendants had "stuffed" the retail channels with overpriced TracVision systems; (b) that the Company's revenues were not growing by millions of dollars per quarter and the purported growth trends in the Company's revenues could not be sustained; and (c) that KVH had not realized any material cost reduction in the manufacture of its TracVision systems and would be forced to write-down its inventory of manufactured goods by millions of dollars. The complaint further alleges that defendants failed to disclose these adverse facts in order to complete a public offering of KVH common stock, raising more than $51.5 million in much needed capital.

On or about July 6, 2004, before the market opened for trading, KVH stunned the investing public by announcing that it was slashing the retail price of its TracVision systems by more than 34% and taking a multi-million dollar write down of vendor purchase commitments and on-hand inventories to reflect the true value of KVH's TracVision systems sales. In pre-opening market trading, KVH common stock declined more than 19%, to open at $9.51 per share on July 6, 2004, a 49% decline from the public offering price just 4 months prior.

Plaintiff seeks to recover damages on behalf of all purchasers of KVH publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin Stoia & Robbins LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Lerach Coughlin Stoia & Robbins LLP, a 140-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston, Philadelphia and Seattle, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin Stoia & Robbins LLP lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Stoia & Robbins LLP Web site (http://www.lcsr.com) has more information about the firm.