CHG Chemring Group Plc

    FOR IMMEDIATE RELEASE                                            4 JUNE 2007

                          CHEMRING GROUP PLC ACQUIRES
                        HIGH ENERGY MATERIALS BUSINESS                         

Chemring Group PLC ("Chemring") announces that it has conditionally agreed to
acquire the business and assets of the High Energy Materials division of Dyno
Nobel ASA ("HEM"), a subsidiary of Orica Limited, for a cash consideration of
NOK 33 million (�2.8 million). The acquisition is expected to complete in July,
following the transfer of certain key operating licences and business
contracts.

Description of the business and reasons for the acquisition

HEM, based in Saetre, Norway, manufactures and supplies RDX and HMX, and other
niche energetic materials for explosives and propellant applications. The
business will trade as Chemring Nobel AS High Energy Materials under Chemring's
ownership.

In the year to 31 December 2006, the unaudited sales of HEM were NOK 90 million
(�7.5 million) and the unaudited operating profit was NOK 3 million (�0.2
million). At 31 December 2006, HEM had gross assets of NOK 79 million (�6.6
million).

Principal terms of the acquisition

The consideration of NOK 33 million will be paid in cash, utilising existing
bank facilities. The consideration will be subject to adjustment depending on
the net assets of HEM at completion.

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

"The acquisition of HEM is an important step in the development of our
capability to support the munitions and military explosives markets. It brings
with it advanced insensitive munitions (IM) technology that will be a vital
part of our future development. The acquisition of HEM will strengthen our
product offering within the field of energetic materials and I am pleased to
welcome the business to the Group."

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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