24 Mar 2003

The Group has made a good start to the year, the Kilgore plant is progressing well, and prospects for business have strengthened, particularly for expendable countermeasures products where demand is high in the USA, the UK and internationally.

Negotiations are continuing with Royal & Sun Alliance and our insurance brokers, Willis. There have been no developments which give us any reason to question our confidence in the outcome of the claim.

We are in discussions with third parties regarding the disposal of two non-core businesses.

When announcing the preliminary results for the year ended 31 October 2002, I reported that I believed the Group would return this year to the strong performance of previous years and I continue to stand by this statement.

K C SCOBIE
CHAIRMAN
24 March 2003

For further information:

Ken Scobie Chairman, Chemring Group PLC
David Evans Chief Executive, Chemring Group PLC
01489 881880

Jonathan Rooper, CardewChancery
0207 930 0777