Trading Update

FOR IMMEDIATE RELEASE                                        23 NOVEMBER 2006

                              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 2006, which are expected to be announced at the
end of January 2007.

Trading

The Group has performed strongly in the second half of the year, achieving
improved 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 businesses remains strong and benefits from the
high level of peacekeeping operations underway in Afghanistan and Iraq. Alloy
Surfaces has continued its growth with a record order intake, including further
major orders from the US Army, US Navy and the US Air Force. Kilgore also had
an excellent second half with record levels of production. Kilgore was also
successful in securing orders for several new products, including the
production contract for the advanced flare suite for the F-22 Raptor aircraft,
designed to defeat air-to-air guided missiles. Chemring Countermeasures in the
UK had an excellent year with record levels of production, particularly in
support of UK deployment in Afghanistan.

Energetics

Trading in the Energetics businesses also showed good organic growth, and the
newly acquired businesses all performed well. Production of the new rocket
motors for the UK NLAW missile programme has now started and factory acceptance
of the MECS battlefield simulation ammunition for the US Army has been
completed. The acquisition of BDL Systems Ltd was completed in September and
its integration into the Group has started well.

Outlook

The order book for the Group now stands at £218 million, up 79% since October
2005. The Board is confident that the market outlook over the next few years
remains strong, and the prospects for the Group in 2007 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