CHG Chemring Group Plc

    FOR IMMEDIATE RELEASE 26 JULY 2005

                          CHEMRING GROUP PLC ACQUIRES                          

                         ENERGETIC MATERIALS BUSINESS                          

Chemring Group PLC ("Chemring") announces that it has entered into a binding
agreement to acquire Comet GmbH, Pyrotechnik-Apparatebau ("Comet"), a
subsidiary of Diehl Stiftung & Co KG, for a cash consideration of Euro9.6 million
(�6.7 million). The acquisition is expected to complete in August or September
2005, subject to regulatory approval.

Description of the business and reasons for the acquisition

Comet, based in Bremerhaven, Germany, manufactures and supplies a range of
military and marine pyrotechnics.

In the year to 31 December 2004, the sales of Comet's military and marine
pyrotechnics business were Euro16 million and the operating profit was Euro0.7
million. At 31 December 2004, Comet had net assets of Euro6.1 million.

Comet's military pyrotechnics, which include a range of innovative battlefield
simulation products, complement those sold by PW Defence Limited, a Chemring
subsidiary based in Derby, UK. Comet's marine pyrotechnic products are
complementary to the range of SOLAS (Safety of Life at Sea) approved marine
pyrotechnics currently produced by Chemring.

The acquisition strengthens significantly Chemring's ability to compete in
these market areas, particularly in Europe, and is expected to be earnings
enhancing in the first full financial year post-completion.*

Principal terms of the acquisition

The consideration of Euro9.6 million will be paid in cash, utilising increased
bank facilities. The consideration will be subject to adjustment depending on
the net assets of Comet at completion. It is anticipated that, following fair
value adjustments by Chemring, the net assets of Comet will be valued at a
level not substantially different to the consideration.

Commenting on the acquisition, David Price, Chief Executive of Chemring, said:

"The acquisition of Comet will substantially enhance our position in both the
military and marine pyrotechnic markets. This valuable addition to our
Energetic Materials division offers an attractive opportunity to consolidate
some of our global production activities, and to generate good volumes and
market-related synergies.

It represents an important initial step in our strategy to establish ourselves
as a leading player in the Energetic Materials market."

* This statement should not be taken to mean that the earnings per share of
Chemring will necessarily match or exceed the historical reported earnings per
share of Chemring and no forecast is intended or implied.

For further information:

Dr David Price Chief Executive, Chemring Group PLC 01489 881880

Paul Rayner Finance Director, Chemring Group PLC 01489 881880

Jonathan Rooper Cardew Group 0207 930 0777

 



END

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