Kilgore Flares Awarded Multi-Year Flare Contract

(October 5, 2009) -- Chemring Group PLC ("Chemring") is pleased to announce that its US subsidiary, Kilgore Flares Company LLC ("Kilgore"), based in Toone, Tennessee, has been awarded an IDIQ (indefinite delivery/indefinite quantity) contract for the supply of M206, MJU-7A/B, and MJU-10/B infra-red (IR) decoy flares to the US Department of Defense. The flares are used by the US Army and US Air Force to protect both fixed wing and rotary wing aircraft from the threat of IR guided missiles. The contract extends over a five year period, and has a maximum potential value of $804 million. A first delivery order at a value of $42 million, for delivery in 2010 and the first quarter of 2011, has already been placed on Kilgore.

Dr David Price, Chief Executive of Chemring, commented "This contract is the largest ever IDIQ award received by Chemring from the US Department of Defense and underpins our countermeasures business at Kilgore over the next five years."

Source : Chemring Group Plc.