Issue of Equity

Chemring Group PLC
19 October 2001


19 October 2001

Chemring Group plc



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN



               CHEMRING GROUP PLC ('Chemring' or the 'Company')

                     Placing to Raise up to £4.23 million



The Board of Chemring Group PLC ('Chemring' or the 'Company') is pleased to
announce that it has made arrangements to place up to 1,196,080 new ordinary
shares of nominal value of 5p each ('the Placing Shares') at a price of 354
pence per share ('the Placing'). The Placing Shares, which represent
approximately 4.6 per cent. of the existing issued share capital, are being
placed with institutional investors by Investec Henderson Crosthwaite, a
division of Investec Bank (UK) Limited. The proceeds to be raised from the
Placing amount to a maximum of approximately £4.23 million (before expenses).

For some time there has been considerable institutional demand for Chemring
shares, which could not be satisfied due to lack of liquidity in the stock.
The enlarged capital base will improve liquidity and also assist the Company
in its expansion, whilst in the short term the proceeds of the Placing will
reduce net debt and improve gearing.

Application will be made to the Official List of the UK Listing Authority and
to the London Stock Exchange for the admission of the Placing Shares to the
Official List and to trading on the London Stock Exchange's market for listed
securities ('Admission'). It is expected that Admission will take place on
Monday 29 October 2001. The Placing Shares will be issued and credited as
fully paid and will, on Admission, rank pari passu with the existing ordinary
share capital of Chemring.

The Company designs and manufactures a range of electronic, engineering and
chemical products for use in the military, marine, aerospace and industrial
fields. For its last full year ending 31 October 2000, the Company reported
profits before tax of £7.12 million (£4.3 million in 1999) on turnover of £
67.2 million (£65.4 million in 1999). The market capitalisation of the Company
on 17 October 2001 was £95 million.



For further information:-

Chemring Group PLC

David Evans                    00 44 (0) 1489 881 880

Chief Executive

Paul Rayner                    00 44 (0) 1489 881 880

Finance Director



Investec Henderson Crosthwaite

Nigel Tose                    00 44 (0) 20 7597 5970

Director of Corporate Finance



Cardew & Co

Jonathan Rooper               00 44 (0) 207 930 0777