03 May 2001

Chemring Group PLC ("Chemring") announces that it has signed an agreement to acquire 25% of the issued share capital of DT Media Limited ("DTM"), a company based in South Devon, for a cash consideration of £10,000. In addition Chemring will provide a cash loan of up to £150,000 to DTM, to be used to reduce net debt and provide working capital. At 31 December 2000, DTM had net liabilities of £85,000.

DTM specializes in the design and production of high quality computer based training and simulation solutions, particularly in the fields of electronic warfare, information warfare, and aviation related training.

David Evans, Chief Executive of Chemring, commented: "The acquisition will provide significant opportunities for the Group through the use of DTM products to promote and expand our existing technologies. In particular, we see excellent synergy with the provision of high quality simulation graphics and tools to support our electronic warfare modeling capability, and state of the art computer based training to support our growing product support services".

Enquiries

Chemring Group PLC Tel: 01489 881 880
David Evans, Chief Executive
Paul Rayner, Finance Director

Cardew & Co Tel: 020 7930 0777
Jonathan Rooper