Exercise of Entitlement under Phantom Share Option

FOR IMMEDIATE RELEASE 1 NOVEMBER 2007

     EXERCISE OF ENTITLEMENT UNDER THE CHEMRING GROUP PHANTOM SHARE OPTION     

Chemring Group PLC (the "Company") was notified on 31 October 2007 that Kenneth
Charles Scobie, a director of the Company, wished to exercise his entitlement
under The Chemring Group Phantom Share Option, an entitlement which would have
otherwise expired on the 16 December 2007.

The Chemring Group Phantom Share Option Scheme was established in 1997 to
secure Mr Scobie's appointment as Chairman of the Company at a difficult time
when the Group was undergoing a fundamental reorganisation. Mr Scobie, who is
the only participant in this scheme, acquired a contractual entitlement on his
appointment in 1997 to the grant of phantom options over 141,025 ordinary
shares in the Company at a notional exercise price of 78p per share. Exercise
of the phantom option can only take place at least three years after the date
of grant and is subject to performance conditions linked to growth in earnings
per share, which have been met. Upon exercise Mr Scobie has become entitled to
a cash payment from the Company, which will be made during November, equivalent
to the difference between the market value of the ordinary shares at 31 October
2007 (£22.11p) less the notional exercise price (0.78p). The cost of the
phantom options has been accrued throughout the ten year life of the scheme.
The total cash payment, before tax, is £3.0 million of which £0.9 million has
been accrued in the financial year to October 2007. No further awards will be
made under this scheme and there are no further payments outstanding.

Enquiries:


Paul Rayner

Chemring Group PLC

01489 881880