Trading Update

FOR IMMEDIATE RELEASE                                        23 NOVEMBER 2007

                              CHEMRING GROUP PLC                               

                                TRADING UPDATE                                 

Chemring Group PLC ("Chemring" or "the Group") today provides an update on
trading before entering the close period in respect of its preliminary results
for the year ended 31 October 2007, which are expected to be announced at the
end of January 2008.

Trading

The Group performed strongly in the second half of the year, increasing
revenues and improving margins in both the Countermeasures and Energetics
businesses. The Board anticipates that the Group's profits for the year will be
in line with market expectations.

Countermeasures

Trading in the Countermeasures division remains strong and continues to benefit
from the high level of global peacekeeping operations, particularly in Iraq and
Afghanistan. New advanced flare programmes, to support air superiority combat
aircraft requirements, continue to emerge and we are maintaining our lead
position on the key US and European platforms. Chemring Countermeasures in the
UK had another excellent year, delivering record levels of production to the UK
and other NATO countries in support of deployment in Afghanistan. Alloy
Surfaces' trading was strong throughout the year and the business secured its
first multi-year framework contract from the US Navy. Negotiations of similar
multi-year contracts with the US Air Force and US Army continue. Trading at
Kilgore, however, continued to be weaker than expected with production delays
in one of the high volume products, as well as delays in the start of
production on several new products. The order book at Kilgore has, however, now
reached a record level.

Energetics

Trading in our Energetics businesses has been excellent, with good organic
growth across our pyrotechnic, munitions and explosive ordnance disposal
activities. Chemring Defence UK (formerly PW Defence) recently secured a major
five year contract from the US Army to supply non-lethal, 66mm Vehicle
Discharge Grenades. All of the newly acquired businesses performed in line with
expectations. In particular, Simmel Difesa has performed extremely well in the
first seven months of ownership, with a good year end performance, and has just
been awarded a major contract (€26 million) to supply a NATO country with 120mm
tank ammunition.

Outlook

The order book for the Group now stands at a new record of £324 million, up 50%
since October 2006. The Board is confident that the prospects for the Group in
2008 continue to be excellent.

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