01 Jun 2004

Chemring Group PLC ('Chemring')is pleased to announce that its UK countermeasures business, Chemring Countermeasures, ('CCM'), has been awarded a £12 million contract by the UK Ministry of Defence for the design and supply of an improved shipborne countermeasure for deployment in Royal Navy frigates, destroyers and larger ships. Following an initial design certification phase, deliveries under the contract are anticipated to commence in 2008.

David Evans, Chief Executive of Chemring, commented: 'This contract, which is the culmination of both trials and design activity over a number of years, is the largest shipborne countermeasures contract ever placed with CCM. The new round will break new ground by being the first application of fully insensitive munition (IM) technology in the countermeasures field of ship defence, and we anticipate that it will attract considerable interest from overseas navies.'

Chemring is an international leader in defensive countermeasures, signalling and training pyrotechnics and marine safety products. Chemring's countermeasures division comprises Alloy Surfaces Company, Inc. and Kilgore Flares Company LLC in the US, and Chemring Countermeasures in the UK.

For further information:

David Evans Chief Executive,
Chemring Group PLC
01489 881880

Jonathan Rooper
CardewChancery
020 7930 0777