06 Jul 2005

Chemring Group PLC (“Chemring”) is pleased to announce that its US countermeasures business, Alloy Surfaces Company, Inc. (“Alloy Surfaces”), based in Philadelphia, has secured an $8 million order from the UK Ministry of Defence (the “MoD”) for its unique, covert special material decoys. Delivery of the contract will be made in the period to March 2006. The contract provides the MoD with options to place further orders over the period to March 2007, which, if taken up, could bring the total value of the contract to $30 million.

Dr David Price, Chief Executive of Chemring, commented: “The MoD continues to play a leading role in peacekeeping operations around the world. In this uncertain environment, it is vital that our armed forces receive the best countermeasures available to defeat the potential missile threats. The covert decoys manufactured by our subsidiary, Alloy Surfaces, are the best in the world. We are delighted, therefore, to receive this new contract, and we have substantially increased production at our second facility outside Philadelphia to meet the MoD’s operational needs.”

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.

Paul Rayner
Finance Director
Chemring Group PLC
01489 881880

Jonathan Rooper
Cardew Group
0207 930 0777