CHG Chemring Group Plc

    FOR IMMEDIATE RELEASE                                        5 NOVEMBER 2007

                              CHEMRING GROUP PLC                               

           ACQUISITION OF RICHMOND ELECTRONICS & ENGINEERING LIMITED           

Chemring Group PLC ("Chemring" or "the Group") announces that it has acquired
the entire issued share capital of Richmond Electronics & Engineering Limited
("Richmond") from a private individual for a total consideration of �11
million.

Description of the business and reasons for the acquisition

Richmond, based in Norfolk, UK is a leading manufacturer of disruptors and
other equipment for the safe neutralisation of Improvised Explosive Devices
("IEDs") and unexploded ordnance. Richmond's patented recoilless disruptors
fire a projectile or jet of water into the firing circuits of an IED to
neutralise it without detonation, and can be fitted to even small bomb disposal
robots using Richmond's precision aiming and mounting systems. Richmond also
manufactures IED search equipment and a range of tools for remote dismantling
and neutralising unexploded ordnance which facilitate the reconstruction of
conflict zones.

In the year ended 30 September 2007, Richmond generated an unaudited profit
before tax of �1.5 million on turnover of �5.8 million. Gross assets as at that
date were �4.7 million. Cash at completion is expected to be approximately �1.6
million. The acquisition is expected to enhance Chemring's earnings in the
first full financial year post-completion.*

The acquisition of Richmond supports Chemring's strategy of building a strong
presence in the Explosive Ordnance Disposal ("EOD") and IED defeat markets, and
complements the EOD equipment and consumables produced by Chemring's current
Energetics businesses. In addition, Richmond has strong relationships with the
leading suppliers of bomb disposal robots, which adds a new channel to market
for the Group's products.

Principal terms of the acquisition

The consideration of �11 million was satisfied by the issue of 50,107 new
Chemring ordinary shares and a balancing cash payment of �10 million. The cash
payment was funded with existing bank facilities.

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

"The acquisition of Richmond is another important step in the planned
development of our EOD business. The company supplies vital technology to EOD
end users and robot manufacturers which enables the safe, remote neutralization
of IEDs and unexploded ordnance. The growing global IED threat and creation of
new military and homeland security bomb disposal teams will further extend the
opportunity for our range of EOD products over the next few years.

The acquisition price of �1l million represents a historic post-tax multiple on
an enterprise value of �9.4 million of approximately nine times."

* 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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