Insurance Claim Update

Chemring Group PLC
27 March 2002




FOR IMMEDIATE RELEASE                                              27 MARCH 2002



                               CHEMRING GROUP PLC

                             INSURANCE CLAIM UPDATE


As reported in the Chairman's Statement in January, Chemring Group PLC 
('Chemring') has been endeavouring for some months to engage its insurers, Royal 
& Sun Alliance ('RSA'), in meaningful negotiations over settlement of the 
property damage and business interruption insurance claim following the incident 
at Kilgore Flares Company LLC ('Kilgore'), Chemring's Tennessee-based subsidiary,
in April 2001.

Regrettably, RSA has not agreed to a reasonable settlement, and consequently
Chemring has been left with no option but to take the action outlined in January
and commence proceedings in the name of Kilgore in the Tennessee Court.  The
claim which has been filed is for an additional US$16.9m, plus penalties as
provided by law.

Further updates will be provided as the matter progresses.

The rebuild of facilities at Kilgore is now complete and full production will be
resumed by May.



For further information please contact:

Paul Rayner       Finance Director, Chemring Group PLC              01489 881880

Jonathan Rooper   Cardew & Co.                                     0207 930 0777







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