Response to Today Programme

Chemring Group PLC 10 May 2002 For Immediate Release 10 May 2002 CHEMRING GROUP PLC PRESS STATEMENT The BBC Today programme this morning alleged that Chemring Group PLC's subsidiary, PW Defence Ltd, supplies anti-personnel mines. The Chemring Group does not manufacture or supply any products that can be configured in any shape or form as an anti-personnel mine and the BBC were advised of this in clear terms the day before the Today programme was broadcast. The BBC reporter Andrew Gilligan, posing as a member of a security firm, met a sales manager from Chemring's subsidiary PW Defence Ltd (PWD) to discuss perimeter security. PWD provides a range of products with various payloads that when initiated provide illumination, flares for signalling and smokes. These products can be used independently and can also be used with a trip wire, which extends to up to 30 metres. The PWD salesman discussed the range with Gilligan who leading the conversation, said he wanted something more powerful and enquired about a fragmentation grenade. During the meeting Gilligan was advised that any export of such items would require an 'end user certificate' and Department of Trade & Industry approval for export. Unfortunately the PWD salesman did not point out, as is the case, that fragmentation grenades are no longer manufactured or sold by the Chemring Group, breaching the company's own internal rules. The BBC showed Chemring a copy of a transcript of the discussion between Andrew Gilligan and the PWD salesman for comment. The BBC was advised in clear terms that fragmentation grenades are no longer manufactured or sold by Chemring and that any impression given in the interview is entirely mistaken. The broadcast concluded by refusing to accept the truthfulness of Chemring's statement and perpetuating an entirely false impression that PWD engages in manufacturing and selling illegal products. Chemring regards the BBC's broadcast as misleading and inaccurate and is discussing matters with its lawyers. The Ottawa convention was signed in December 1997 and came into effect on 1 March 1999. PWD has not supplied such products to any customers since the convention was signed. Following the appointment of Ken Scobie as Chemring Group Chairman in 1997, an ethical review of PWD's product range and markets was carried out. The outcome of the review was that in future the Group's defence business would focus on defensive products such as countermeasures, pyrotechnic signaling and training aids. Today Chemring Group is the world market leader in expendable countermeasures used for the protection of military aircraft and ships. As a consequence, sales of the fragmentation grenade combined with the trip wire mechanism were stopped in April 1997. The product was removed from the PWD catalogue in 1999. PWD continues to produce the non-fragmentation variants and is currently in production for the UK Ministry of Defence on the flare variant, used for signaling any intrusions of a protected perimeter with a flare. All exports are covered by end user certificates and DTI export licence approvals. Each company in the Chemring Group has its own internal controls to ensure that all exports gain the necessary Department of Trade approvals including 'end user certificates'. Chemring Group PLC is a responsible and respected supplier of defence products and takes its responsibilities and obligations as a manufacturer of defence-related products seriously. It maintains policies and procedures to ensure compliance with all applicable regulatory requirements, including proper vetting of proposed sales and procurement of all necessary permits and licences, and always fully complies with Government regulations and guidelines on its defence products. The Department of Trade has the right to audit this compliance at any time. For further information: Anthony Cardew Cardew & Co. 0207 930 0777 Jonathan Rooper This information is provided by RNS The company news service from the London Stock Exchange
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