Disposal

FOR IMMEDIATE RELEASE 30 MAY 2006

                     CHEMRING SELLS MARINE LIGHTS BUSINESS                     

Chemring Group PLC ("Chemring") announces that it has agreed a conditional sale
of its McMurdo marine lights business (the "Lights Business") to Daniamant
Limited ("Daniamant") for a cash consideration of £2.85 million. Following
receipt of a cash deposit of £0.25 million, £2.32 million will be paid in cash
at completion and deferred consideration of £0.28 million will be paid on the
first anniversary of completion. The proceeds will be used to reduce net debt.

The Lights Business, which is a division of Chemring's UK-based subsidiary,
McMurdo Limited, manufactures and supplies marine lights for lifejackets and
liferafts.

In the year to 31 October 2005, the Lights Business made an audited pre-tax
profit of £0.2 million on sales of £3.6 million. The gross assets (including
goodwill of £1.4 million) of the Lights Business at 31 October 2005 were £3.0
million.

Completion, which is conditional upon the transfer of certain product
approvals, is expected to take place before the end of June.

Dr David Price, Chief Executive of Chemring, commented: "I am pleased to
announce the sale of our marine lights business to Daniamant, which already has
a similar operation in Denmark and is a good strategic fit for the business.
The disposal represents the initial step in our strategy to divest all of our
marine electronics activities and focus the core business on countermeasures
and energetics."

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