Chemring Group plc : Simmel awarded €38 million pyrotechnic contracts

13 January 2012

Chemring Group PLC ("Chemring") is pleased to announce that its Italian subsidiary, Simmel Difesa S.p.A.("Simmel"), has been awarded further contracts to the value of €38 million for the delivery of 81mm pyrotechnic illumination mortar rounds. This award amends and extends existing contracts that were awarded in 2010, which amounted to €24.5 million, and raises the total replacement contracts to €62.5 million. Deliveries under the contracts will be made over the period from 2012 to 2014.

Dr David Price, Chief Executive of Chemring, commented: "I am delighted with today's announcement. It confirms Chemring's leading role within the pyrotechnics industry and the sustained requirement for these products despite current defence cuts."

Simmel, based in Colleferro, Italy, is a key supplier of energetics sub-systems such as fuzes, safety and arming systems, warheads and modular charge systems for major ammunition prime contractors around the world. The company is also a specialist manufacturer of medium and large calibre ammunition, rockets and illumination mortar rounds for a substantial number of NATO and non-NATO armed forces. Simmel has a second site at Anagni, Italy, where it has a specialist facility for the disposal of ordnance at the end of its operational life.

For further information:

Dr David Price Chief Executive Chemring Group PLC	01489 881880
Rupert Pittman Director of Communications & Investor Relations Chemring Group PLC	07976 249289

Notes to Editors:

• Chemring is a market leading manufacturing business supplying high technology electronics and energetic products to over 80 countries around the world.
• Chemring has a diverse portfolio of products that predominantly protect military people and platforms, providing insurance against a constantly changing threat. These range from countermeasures to protect aircraft, to ground penetrating radar to protect troops and vehicles from improvised explosive devices.
• Chemring operates in high margin, niche markets with short product development timescales. With strong barriers to entry the business has the agility to rapidly adapt to the urgent needs of our customers. The highly fragmented nature of many of its markets gives Chemring excellent opportunities to win further market share through manufacturing efficiencies and targeted acquisitions.
• Chemring's balanced geographic profile and diverse global markets positions it well to withstand economic downturn in any of its major markets. This gives confidence to be able to successfully navigate current defence cuts experienced in the US and Europe. Chemring continues to grow its presence in the Middle East and Asia and expects non-NATO revenues to reach 40% of the Group over the next two to three years.