01 Nov 2004

Chemring Group PLC (“Chemring”) is pleased to announce that its US subsidiary, Kilgore Flares Company LLC (“Kilgore”), based in Toone, Tennessee, has secured an $18.4 million order for US Air Force M206 and MJU7A/B countermeasures from the US Department of Defense (the “DoD”). Deliveries of in excess of 700,000 flares will be made during the first year of the contract. The contract also provides the DoD with options to place further orders over a four year period from 2005 to 2008, which, if taken up, could bring the total value of the contract to over $104 million.

David Evans, Chief Executive of Chemring, commented: “Kilgore is already distinguished as being the largest manufacturer and supplier of magnesium-based decoy flares in the US, and this order further enhances Chemring’s position as the leading supplier of infra-red expendable decoys to the DoD. The order book for our US countermeasures division now stands at over $124 million.”

Chemring is an international leader in defensive countermeasures, signalling and training pyrotechnics and marine safety products. The 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
0207 930 0777