Chemring : Contract Awards

24 May 2018

Chemring Group is pleased to announce that its US based subsidiary, Chemring Countermeasures USA ('CCM USA'), has been awarded contracts totalling $27.5 million for the production of M211 and MJU-64/B flares for the US Army, US Navy and Foreign Military Sales customers. These flares are a key component of aircraft survivability systems that protect fighters, helicopters and transport aircraft against infrared guided missile threats. Deliveries under these contracts will be made between 2018 and 2019, with all work being performed at CCM USA's facility at Chester Township, Pennsylvania.

Michael Flowers, Group Chief Executive of Chemring, commented:

'These contracts demonstrate the confidence of the US Army and US Navy in Chemring's ability to develop and supply quality aircraft countermeasures, and it recognises our dedication to protecting our warfighters.

'We have invested significantly in our global Countermeasures capabilities and facilities and continue to do so, with major improvement programmes ongoing at all sites. I am delighted to see that these investments have positioned the Group to be best able to serve our customers as the preferred supplier of the highest quality infrared flares.'

-ENDS-

For further information:

Notes to editors

• Chemring is a global business that specialises in the manufacture of high technology products and the provision of services to the aerospace, defence and security markets
• Employing approximately 2,600 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries
• Chemring is organised under three strategic product segments: Countermeasures, Sensors, and Energetics
• Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions and information against constantly changing threats
• Operating in niche markets and with strong investment in research and development ('R&D'), Chemring has the agility to rapidly react to urgent customer needs

www.chemring.co.uk

Cautionary statements
This announcement contains unaudited information based on management accounts and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Chemring's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.

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