Kilgore Insurance Claim Update

FOR IMMEDIATE RELEASE 3 AUGUST 2004

                              CHEMRING GROUP PLC                               

                        KILGORE INSURANCE CLAIM UPDATE                         

Chemring Group PLC ('Chemring') announces that it has reached a settlement with
Royal & SunAlliance ('R&SA') in respect of the insurance claim for property
damage and business interruption at the site of its Tennessee-based
countermeasures business, Kilgore Flares Company LLC ('Kilgore'), following an
incident in April 2001. R&SA has agreed to make a further payment of US$9.0
million to Chemring. This brings the total settlement paid by R&SA to
US$17.0 million.

Chemring is now pursuing a claim against its insurance brokers, Willis,
concerning the insurance cover for Kilgore and their subsequent handling of the
claim.

David Evans, Chief Executive of Chemring, said: 'We are pleased to have finally
reached an acceptable settlement with R&SA. The receipt of US$9.0 million will
be used to reduce the Group's net debt. We believe the outstanding balance of
US$4.5 million, not covered by the R&SA settlement, will be recovered in due
course from Willis'.

For further information:

David Evans Chief Executive, Chemring Group PLC 01489 881880

Jonathan Rooper CardewChancery 0207 930 0777