30 May 2006

Chemring Group PLC (“Chemring”) announces that it has agreed a conditional sale of its McMurdo marine lights business (the “Lights Business”) to Daniamant Limited (“Daniamant”) for a cash consideration of £2.85 million. Following receipt of a cash deposit of £0.25 million, £2.32 million will be paid in cash at completion and deferred consideration of £0.28 million will be paid on the first anniversary of completion. The proceeds will be used to reduce net debt.

The Lights Business, which is a division of Chemring’s UK-based subsidiary, McMurdo Limited, manufactures and supplies marine lights for lifejackets and liferafts.

In the year to 31 October 2005, the Lights Business made an audited pre-tax profit of £0.2 million on sales of £3.6 million. The gross assets (including goodwill of £1.4 million) of the Lights Business at 31 October 2005 were £3.0 million.

Completion, which is conditional upon the transfer of certain product approvals, is expected to take place before the end of June.

Dr David Price, Chief Executive of Chemring, commented: “I am pleased to announce the sale of our marine lights business to Daniamant, which already has a similar operation in Denmark and is a good strategic fit for the business. The disposal represents the initial step in our strategy to divest all of our marine electronics activities and focus the core business on countermeasures and energetics."

For further information:

Dr David Price, Chief Executive
Chemring Group PLC
01489 881880

Paul Rayner, Finance Director
Chemring Group PLC
01489 881880

Rupert Pittman
Cardew Group
0207 930 0777