NEW US ORDERS

FOR IMMEDIATE RELEASE 2 OCTOBER 2006

                              CHEMRING GROUP PLC                               

                  NEW US ORDERS FOR COUNTERMEASURES DIVISION                   

Chemring Group PLC ("Chemring") is pleased to announce that its US
countermeasures businesses, Alloy Surfaces Company, Inc. ("Alloy Surfaces"),
based in Philadelphia, and Kilgore Flares Company LLC ("Kilgore"), based in
Tennessee, have recently secured $80 million of new orders.

Alloy Surfaces has received a $57 million order from the US Department of
Defence (the "DoD") for its unique M211 special material decoys. This order is
part of the framework agreement defined by the Memorandum of Understanding
signed with the DoD in January 2006. Deliveries will be made over the period to
August 2008. Alloy Surfaces has recently completed the expansion of one of its
two existing plants to provide the additional capacity needed to satisfy the
significant increase in orders for its decoys from the DoD, and a third
manufacturing facility is expected to become operational towards the end of
2006.

Kilgore has secured $23 million of contract options with the DoD for US Air
Force M206 and MJU-7A/B infra-red countermeasures. These options are funded
from the DoD's supplementary budget and are additional to the annual option
that was placed earlier in the year. Deliveries are expected to be completed by
May 2007.

Dr David Price, Chief Executive of Chemring, commented: "I am delighted that we
have secured these contracts, which underpin our high volume production in the
US throughout 2007 and 2008. The Group orderbook has now reached a record level
of over £225 million."

Chemring is an international leader in defensive countermeasures and energetic
materials. The countermeasures division comprises Alloy Surfaces Company, Inc.
and Kilgore Flares Company LLC in the US, and Chemring Countermeasures in the
UK.

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