CHG Chemring Group Plc

    FOR IMMEDIATE RELEASE 30 MARCH 2007

                              CHEMRING GROUP PLC                               

                      ACQUISITION OF SIMMEL DIFESA S.p.A.                      

Chemring Group PLC ("Chemring" or "the Group") announces that it has today
acquired the entire issued share capital of Simmel Difesa S.p.A.("Simmel") for
a total consideration of Euro77 million (�52 million).

Description of the business and reasons for the acquisition

Simmel, based in Colleferro, Italy, is a key supplier of energetics
sub-systems, such as fuzes, safety and arming systems, warheads and modular
charge systems, for major ammunition prime contractors around the world. The
company is also a specialist manufacturer of medium and large calibre
ammunition, rockets and illumination mortar rounds for a substantial number of
NATO and non-NATO armed forces. Simmel has a second site at Anagni, Italy,
where it has a specialist facility for the disposal of ordnance at the end of
its operational life.

In the year ended 31 December 2006, Simmel reported an audited profit before
tax (before non-recurring costs of Euro0.6 million (�0.4 million)) of Euro9.1 million
(�6 million) on turnover of Euro42.5 million (�29 million). Gross assets as at
that date were Euro40.8 million (�28 million). The acquisition is expected to
enhance Chemring's earnings in the first full financial year post-completion.*

The acquisition of Simmel supports the Chemring strategy for the development of
its Energetics business in both the munition and explosive ordnance disposal
markets. It provides an extensive range of munition sub-system technologies and
capabilities, visible and IR illumination mortar products as well as an
excellent medium calibre system integration capability. These will all enhance
the scope of our long term collaborations with the leading ammunition prime
contractors. In addition, Simmel also brings access to some important
geographic markets, particularly Italy, India and South America. 

Principal terms of the acquisition

The consideration of Euro77 million (�52 million) was satisfied by the issue of
373,551 new Chemring ordinary shares and a balancing cash payment of Euro67
million (�45 million). The cash payment was funded with new bank facilities. Euro5
million (�3 million) of cash was acquired with Simmel, producing an enterprise
value for the business of Euro72 million (�49 million).

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

"The acquisition of Simmel is another important step in the planned development
of our Energetics business. The company provides a substantial enhancement to
our system integration and core sub-system technologies, and will play a major
role in the development of our long term partnerships with the major munitions
prime contractors."

Paul Rayner, Finance Director of Chemring, added:

"The acquisition price of Euro77 million (�52 million) represents an historic
post-tax price earnings multiple (excluding non-recurring costs) on an
enterprise value of Euro72 million (�49 million) of approximately thirteen times.
We have funded the acquisition utilising new medium term loan facilities, and
whilst the acquisition will increase gearing in the short term, the cash
generated by the enlarged Group will reduce debt levels during 2007."

* 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

Rupert Pittman Cardew Group 0207 930 0777



END

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