mini-VSAT BroadbandSM and TracPhone V7 - The New Standard for Maritime Satellite Communications

Digital Ship 2010 Patricio Baez, Vice President Americas Commercial Sales

KVH Industries, Inc.

Agenda
Brief Introduction to KVH
Brief company overview Latest news Virtek

Communications Market
Maritime Market Demands and trends Maritime 5Ss Bandwidth Options

Nordic Taker Video

Customer reviews

mini-VSAT Overview
Technology Coverage Maps Value Added Services
KVH Industries, Inc.

KVH Company Overview

KVH Industries, Inc.

An Introduction to KVH
Established in 1982 Financial strength and stability
Publicly traded on Nasdaq: KVHI Profitable with solid balance sheet Well diversified in products, services, and markets

Guidance and Stabilization

Fiber optic gyro technology Defense and commercial applications

Mobile satellite systems, services, and connectivity for customers on a global basis
Mobile satellite communications and entertainment for marine, land, and aeronautical applications

KVH Industries, Inc.

KVH and Virtek Join Forces

Virtek Communications AS joins KVH family
9 Least Cost Routing / switching to back-up 9 IP routing, firewall and VPN 9 E-mail server, relay server and client (POP3/SMTPMAP) 9 Roaming crew accounts for e-mail and web (access) 9 File transfers and differential synchronization 9 Web optimization and caching

KVH Industries, Inc.

Established Customer Base

Government
U.S. Coast Guard, U.S. Navy, U.S. Army Corps of Engineers, Military Sealift Command, Saudi Arabian Navy, Colombian Navy, Korean Navy

Shipping/Tankers
GroupeDesgagnes, Nordic Tankers (formerly Clipper Marine Services A/S), Mowinckel, Othello Shipping, M.H. Simonsen

Oil & Gas

Petrobras, SeaCor, Telsa Offshore, Offshore Marine, Alaska Tanker, Shell, and Chevron

Offshore support and projects vessels

RederijGroen, Storm Offshore

Fishing
Trident Seafood, Fishermens Finest

KVH Industries, Inc.

Our view of Maritime Communications Market

KVH Industries, Inc.

Communications Overview
Trends and Requirements Today's telecom market place demands converged infrastructures which are reliable, secure and available at all times. Convergence of voice, data, and internet into IP based solutions. Increased in IP based applications from basic TCP/IP to more advanced communication solutions such as VoIP, IPTV, & multimedia, amongst others. Integrated multiple access platforms serving governments, corporations, enterprises and seamless worldwide. Communications are now expanding into the mobility market Aero Maritime Rail and Transport Military (Communications-on-the-move)

KVH Industries, Inc.

Maritime Market
Increasing concern for crew morale and welfare while on board Increasing demand for an always-on broadband service Support applications such as: Communications applications
(VoIP, e-mails, file sharing, web browsing, VPN connectivity, etc)

Vessels management applications

(Real time troubleshooting, medical support cargo information exchange)

Fleet management applications

(Real time information exchange of routes, troubleshooting, and weather information)

Demand for flat-fee-per-month with a worldwide coverage Continued interest for store-and-forward and live video solutions

KVH Industries, Inc.

Maritime Needs and Applications

Key Driving Applications
Communications and entertainment applications
E-mail, web browsing, VoIP calls, video streaming, IPTV

Remote and field applications

VPN office extensions, file transfers, video-conferencing, and highly secured links for military applications

Operational applications
Real time data sharing Troubleshooting and route information Medical support and information exchange

Need for IP-based services with flexibility and growth options Seamless operation for regional and global deployments Demand for highly reliable transmission security services

KVH Industries, Inc.

Maritime Primary Challenges

Small Antennas
Ultra small/affordable antennas Adjacent satellite interference

Seamless Coverage
Seamless roaming and network monitoring Global coverage via multiple beams Consistent IP Addressing worldwide for easy migration

Bandwidth Efficiencies
Link budget challenges Spectral density concerns

Security Concerns
Adversary monitoring Transmission security compliance

Mobility Management
Automatic beam switching Stable, consistent and reliable network ID of remote locations at all times

KVH Industries, Inc.

Maritime5SS
Size,Speed,Service,SpendandSatisfaction
Maritime Competitive Analysis on access technologies Size Antenna Radome Weight Speed Shared IP Service Pay-as-go Web Dedicated IP Spend CPE Voice Data Satisfaction Need for continued VSAT education and benefits of service Seen as strong, reliable solution yet exepensive and large Inmarsat has set a high standard End-to-end design specification Limited Quality due to capacity constrains and high costs Meets regulatory needs Iridium must overcome System reliability Satellite longevity Funding and continuation of services From 256kbps to 4Mbps / 512kbps From 256kbps to 18Mbps / 5Mbps 432Kbps (MAX) 284Kbps (MAX) 128Kbps (MAX) N/A C-Band VSAT 2.4M 3.8M 850kg Ku-Band VSAT 1.2 mts - 60cms 1.2 - 1.4M 100-150kg FB 500 50cm 1M 40-80kg FB 250 25cm 0.5M 15-30kg Iridium OpenPort 57cm X 23cm 57cm x 23cm 11kg Iridium Handheld Handheld Handheld

NO Unlimited CIR

NO Unlimited CIR

YES Usage based Yes

YES Usage based Yes

YES Usage based N/A

YES N/A N/A

$80000 - $60,000 $50,000 - $25,000 $0.25 / min $0.25 / min $1,500 per month $1,000 per month and up and up

$17,000 base $1.30 / min $8 $13 Megabyte

$11,000 base $1.30 / min $8 $13 Megabyte

$5,000 base $0.70 / min $5 $8 Megabyte

$2,000 base $1.00/Min N/A

Overall

KVH Industries, Inc.

Bandwidth Alternatives
VSAT
Reliability Flexibility Service performance Needs to overcome antenna size and cost High standard End-to-end design specification Quality assurance Meets regulatory needs

Inmarsat Fleet/FleetBroadband

Iridium/OpenPort
Must overcome system reliability, satellite longevity, funding, and operations

mini-VSAT Broadband - the NEW market choice

KVH Industries, Inc.

Nordic Tankers

KVH Industries, Inc.

Nordic Tankers
One of the largest Danish operators in tankers with emphasis on product and chemical tankers Owns, wholly or in part, 15 tankers Operates about 60 chemical tankers
Nordic Tankers handles commercial operation and the major part of the technical management

Two vessel groups are providing technical support/fleet management to the entire fleet
Daily technical operation Overall vessel maintenance Inspections Purchasing Dry dock planning and execution

KVH Industries, Inc.

Nordic Video

KVH Industries, Inc.

mini-VSAT Overview

KVH Industries, Inc.

TracPhone V7 & mini-VSAT Broadband

KVH integrated broadband solution
An end-to-end maritime satcom system and service for leisure, commercial, and government vessels Broadband service over Ku-band satellites Faster, lower-cost airtime 600+ active subscribers worldwide and growing Expecting to sell 1000th terminal in the coming weeks

KVH Industries, Inc.

mini-VSAT Global Coverage

Only global multi-megabit network for ships and planes Seamless roaming from region to region Totally automatic switchover between beams
No hardware, modem, or software changes when moving among regions

Current Coverage

Scheduled Coverage

This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

KVH Industries, Inc.

mini-VSAT in World Shipping Lanes

Unrivaled and expanding global Ku-band broadband network

This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

KVH Industries, Inc.

TracPhone V7 & mini-VSAT Broadband

Utilizing spread spectrum technology
Military technology enables spectrum efficiency and data rates as fast as 2 Mbps Compatible with smaller antennas

Easier to install and service

85% smaller by volume and 75% lighter than standard 1-meter diameter VSAT antennas

Superior, affordable airtime service

85% less expensive than competing marine airtime solutions Multiple Voice over IP telephone lines with optimized service

KVH Industries, Inc.

Fast, Consistent, and Cutting Edge

The mini-VSAT network - based on ViaSats ArcLight Code Reuse Multiple Access (CRMA) spread spectrum technology
Significantly reduces contention issues, transmission delays and shared transmission bandwidth Spread spectrum technology immediately sends data in bursts, constantly streaming data Enjoy the fastest data rate available even when multiple users are transmitting CRMA offers every user an unobstructed path for consistent unimpeded data rates

ArcLight technology results in less latency and contention compared to equally sized networks

KVH Industries, Inc.

Effective Bandwidth Management

Fully compatible with powerful middleware solutions Ensure effective onboard communications management
Allow corporate offices to manage each vessels network remotely Monitor every vessel in the fleet on one shore-based screen Make each vessel an extension of the central office

KVH Industries, Inc.

mini-VSAT Benefits
Reduce operational and regulatory compliance costs
Seamless operation for regional and global deployments

Voyage planning and chart updates Remote administrative and personnel management Remote support for IT and onboard equipment Telemedicine and enhanced safety Crew welfare and retention Sending immediate announcements of an exploration discovery Real-time data sharing

KVH Industries, Inc.

Benefits of mini-VSAT Broadband

Established, proven solution for the Maritime, as well as, Oil and Gas market worldwide First next-generation satcom system
Available today

Proven commercial solution Fully integrated communications solution from a single provider
Includes hardware, airtime, and a global support structure

Results in enhanced efficiency and reduced operating costs

KVH Industries, Inc.

mini-VSAT Network Coverage

Unrivaled true broadband worldwide

KVH Industries, Inc.

What Customers Say

The recommendation for the V7 came from captains operating our vessels; they had heard about it from other captains. They are very pleased with the system, specifically as it pertains to the ability to email photos for hard to find parts, providing weather reports to other fleets, and increased data transmission speeds for sending reports.

~ Christian Asay, Operations Manager, Trident Seafoods Reliable communication is essential to our business, so we found the low operating cost and higher data capacity of the TracPhone V7 very attractive. The initial equipment cost was higher than what we paid for the LEO systems that were being replaced, which is OK with us because the TracPhone V7 performs as advertised. ~ Stephen Kemp, Resource Manager, Tesla We chose to switch to mini-VSAT Broadband because it is a more affordable solution and also offers us more advantages for support and crew retention. Plus, the antenna can be installed in just one day. ~ Rolf Arne Herheim, Technical Director, DSD Shipping

KVH Industries, Inc.

What Industry Experts are Saying

An intriguing and technologically innovative new offering to the Maritime space comes from KVHthe mini-VSAT service is unique in many aspects and could become the de facto standard for delivery of marine VSAT services.

~ The New Battle For The Maritime Customer, Alan Gottlieb, SatMagazine.com
...the V7 Mini-VSAT by KVHmixes the most desirable aspects of Inmarsat maritime services (global coverage, seamless oceanic roaming, global distribution and support, all packaged in a small and affordable integrated terminal) but also includes additional desirability in the form of faster data speeds (in Ku band) at a cost hard to be matched by its L-Band stable mate...

~ 10 Years of Satellite Communications Evolution, Piers Cunningham, Digital Ship (SMM Edition)
KVH Industries, Inc.

In summary
A robust, high-capacity, true global multi-megabit broadband network Proven spread spectrum technology A managed airtime network solution Virtek CommBox and mini-VSAT Broadband creates versatile end-to-end solution for powerful communications solutions integration 24/7/365 technical support Affordable, Predictable and Reliable

KVH Industries, Inc.

Thank You

KVH Industries, Inc.

Contact KVH TracPhone V7 and mini-VSAT Broadband service

Americas KVHIndustries,Inc. +14018473327

commercialsales@kvh.com

Europe KVHEuropeA/S +4545160180

Asia KVHSingapore +6568292343

infosingaporekvh@kvh.com

commercialsales@kvh.dk

KVH Industries, Inc.

Annex

KVH Industries, Inc.

Commercial-grade TracPhone V7
Compact, commercial-grade hardware
60 cm antenna plus integrated modem and control unit 75% smaller than legacy 1.2 m VSAT

Reduced installation costs

Due to minimal size and weight, a crane is not needed No need to modify vessel superstructure Easier to find the optimum antenna location No need to connect to ships gyro Installation can take place while under way Reduces vessel downtime

KVH Industries, Inc.

Value Added Crew Calling

Enhanced Crew Calling solution Includes dedicated Crew Calling Gateway Three easy and flexible options
Blank cards that the crew members can put money on by calling KVH directly Pre-paid cards sold in $25 and $100 denominations that the crew can recharge at any time by calling KVH Pre-paid cards sold by the ships captain or purser with no option to recharge via KVH

Ship owners can make a 20% profit on all calling cards they sell to their crew members

KVH Industries, Inc.

Value Added Cell Service

Offshore Cell Phone Service In partnership with On-Waves Use ordinary CDMA and GSM cell phones onboard vessels using very little bandwidth Small, lightweight equipment uses onboard picocell antennas Ability for 2 and up to 7 simultaneous calls For qualifying vessels, there are no monthly fees or any costs to the ship owner

KVH Industries, Inc.

Future Value-added Services

Internet caf
Software interface, measured in time or MBs

Weather charts
Forecasts, surface pressure, wind speed/direction, fronts, sea surface temperature, currents, ice information, wave height, gulf stream, swell condition, and storm information

Regulatory forms
Singapore PANS (Pre-Arrival Notification of Security) USCG e/NOAD (Electronic Notice of Arrival/Departure) WETREP (Western European Tanker Reporting System)

Ship locator
Live vessel position tracking 24 x 7, request position report while on-line, track vessel voyage, six months history on-line, position available by SMS

KVH Industries, Inc.

mini-VSAT for Aeronautics

Flights in progress Number of flights: 9287

This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

KVH Industries, Inc.

mini-VSAT for Oil and Gas Industry

Maritime oil & gas fields

Current Coverage

Scheduled Coverage

This map depicts KVHs expectations for mini-VSAT Broadbands future coverage; actual coverage and availability may vary. For current, available coverage, visit www.minivsat.com.

KVH Industries, Inc.

mini-VSAT coverage for Brazil

Ideally positioned to support Brazils O&G broadband Internet and voice services needs Agreement in place with Star One
Supported via the Star One C-1 satellite

Expected to go live in the fall of 2010

KVH Industries, Inc.

Benefits of mini-VSAT Broadband

miniVSATBroadband CRMANetwork
MoreEfficient Transmissions Bursttransmissionsenablemultiple userstotransmitsimultaneouslyand spreadsignalacrossentireavailable bandwidthathighestspeed TDMAstylecontentioneliminatedno delaysneededbetweentransmissions andchannels Militaryspreadspectrumtechnology designedforexceptionalmobile reception/transmissionusingsmall antennas

TraditionalTDMANetworks
Signalstransmittedonlyatallotted timeswithinefficienttimebuffers betweentransmissions Timebuffersbetweentimeslots requirescapacitytobefurtherdivided intoinefficientchannels Landbasedtechnologyadaptedfor maritimeusewithcumbersome, expensiveequipment Small,undercapitalizedservice providersoftendeploylimitedcapacity toclaimglobalcoverage Integratorscombine1mantennas, modems,otherequipmentfrom multiplemanufacturers,andservices fromdifferentproviders

NoContention Worries Small,Powerful Antennas

RobustNetwork Systemdesignedforglobalmaritime Capacity applicationsusingfulltranspondersin mostregions EndtoEnd Solution Compact24inchantennaandfully integratedmodem/antennacontrolunit designedtoworkwithglobalminiVSAT Broadbandservice

KVH Industries, Inc.

CRMA Spread Spectrum

CRMA spreads traditional carrier to 20x the unspread bandwidth
Reuses bandwidth, transmitting 15 carriers with BW = 30.7 MHz simultaneously in a single transponder Lower power spectral density reduces interference problems that may occur with small antennas with wide beam widths

KVH Industries, Inc.