23 January 2001

Group profit before tax increased to £7.1 million from £4.3 million, up 65%

Basic earnings per ordinary share increased to 22.04p from 14.49p, up 52%

Turnover on continuing operations increased to £67.2 million from £62.1 million

Recommended final dividend per ordinary share 4.00p, making a total dividend of 6.30p for the year, up 15% (1999 : 5.50p)

Acquisition of Alliant Kilgore Flares Company LLC for US$23 million

Ken Scobie, Chemring Group Chairman, commented:

“The acquisition of Kilgore, announced today, enhances our foremost position in expendable countermeasures, a rapidly expanding area of worldwide defence expenditure. This, together with our technical superiority in certain “at risk” situations, gives us high levels of confidence for substantial growth in this industry.

In addition, the prospects for our Marine Safety and Military Pyrotechnics businesses gives your Board confidence that substantial growth can be achieved in the coming year and can be sustained for several years.”

Note - All comparisons are for the year ended 31 October 1999.

For further information:

Ken Scobie
Chairman, Chemring Group PLC
Tel: 0207 930 0777

David Evans
Chief Executive, Chemring Group PLC
Tel: 0207 930 0777

Paul Rayner
Finance Director, Chemring Group PLC
Tel: 0207 930 0777


Jonathan Rooper
Cardew & Co
Tel: 0207 930 0777