KVH Raises $4M in Stock Sale

MIDDLETOWN, R.I. -- KVH Industries (Nasdaq:KVHI) announced today the successful completion of its private equity financing with the sale of 615,384 common shares priced at $6.50 per share to an institutional investor on Friday, May 25, 2001. This sale, valued at $4 million, had been previously approved by KVH's Board of Directors and shareholders at the company's annual meeting and brings the total equity raised by the company since December 2000 to $19.5 million. Needham & Company acted as placement agent for the financing. Proceeds of the placement will be used to finance the company's Photonic Fiber and Mobile Broadband R&D projects. KVH intends to register the shares by filing a Form S-3 during the second quarter ending June 30, 2001. "Providing the resources for effective research and development is critical if we are to bring the Mobile Broadband and Photonic Fiber projects to market successfully. Late last year, we set a goal of raising 15 to 20 million dollars to support our new product development efforts, and I am pleased that we achieved our goal at favorable terms in a challenging market," said Martin Kits van Heyningen, president and CEO. "This funding provides the resources to aggressively pursue our new product initiatives."KVH Industries Inc.