Response from KVH...
Roy Fortier,
Thank you for your interest in KVH Industries and your question
regarding our recent press release. You inquired specifically about
our statement that TACNAV sales could increase ten-fold.
Our TACNAV systems have the advantage of offering a cost-effective
tactical navigation system with a record of reliability. This
reliability has been amply demonstrated both in the U.S., where we
continue to get new orders to expand the presence of TACNAVs, and
abroad. It is the Army's own experience and satisfaction with the
units that led to the recent expansion into National Guard
installations.
There is a rapidly growing recognition in the military and Congress
that all military fleets that operate off-road, including armored
personnel carriers, Hummers and trucks, need a tactical navigation
system to function effectively. Because TACNAV offers tactical
navigation capabilities at a cost far lower than competing inertial
systems, and since it has a documented record of successful operations
in Army applications, it has gained the attention of various military
departments and congressional representatives who are looking to
upgrade our military but who face Department of Defense budget
constraints. In addition, positive word-of-mouth from those with
TACNAV systems is creating a demand from those who do not have TACNAVs.
As a result, KVH has received strong indications that TACNAV could be
used to upgrade some major fleets in the U.S. military, which has an
estimated potential market overall of some 90,000 vehicles. Discussions
are ongoing regarding future TACNAV orders and we cannot predict at
this time when additional orders may be received. We believe, however,
that a ten-fold increase in our TACNAV sales to the U.S. military from
our current total is possible.
If you have any additional questions about KVH, please feel free to
contact me directly at aandrews@kvh.com or call me at 401-847-3327. I
am always interested in feedback from our investors and appreciate
your communicating with us.
Alice Andrews
Director,Corporate Communications
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