Alloy Surfaces Expands to Satisfy Major New Contract

    FOR IMMEDIATE RELEASE 5 JANUARY 2006

                              CHEMRING GROUP PLC                               

                    ALLOY SURFACES EXPANDS SIGNIFICANTLY TO                    

                          SATISFY MAJOR NEW CONTRACT                           

Chemring Group PLC ("Chemring") announces that its US countermeasures business,
Alloy Surfaces Company, Inc. ("Alloy Surfaces"), has signed a Memorandum of
Understanding with the US Department of Defense (the "DoD") which will lead to
Alloy Surfaces increasing capacity for one of its special material decoys from
20,000 units to 80,000 units per month. On that basis, the increase in orders
can be expected to generate additional sales of at least $150 million over the
next three years.

Alloy Surfaces is expanding one of its two existing plants and has commissioned
a third manufacturing facility, which will become operational in the summer of
2006, in order to satisfy the significantly increased requirement from the DoD
for these unique decoys, which are utilised on helicopters and transport
aircraft. It is envisaged that the investment will cost in the region of
$8 million and will be funded out of existing resources.

Dr David Price, Chief Executive of Chemring, commented: "I am delighted to
announce the signing of this Memorandum of Understanding between Alloy Surfaces
and the DoD. Over the last few years, operational demand for our special
material decoys has grown significantly, and Alloy Surfaces is now the largest
supplier of expendable decoys in the world, with annual sales currently in
excess of $75 million. The opening of a third facility, a year after Alloy
Surfaces' second plant became operational, demonstrates the massive growth that
this business has delivered in recent years."

Chemring is an international leader in defensive countermeasures, energetic
materials 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:

Paul Rayner Finance Director, Chemring Group PLC 01489 881880

Anthony Cardew Cardew Group 0207 930 0777



END

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