CONTRACT AWARD

FOR IMMEDIATE RELEASE 4 JANUARY 2011

NIITEK AWARDED $38.4 MILLION CONTRACT

Chemring Group PLC ("Chemring") is pleased to announce that its US subsidiary, Non-Intrusive Inspection Technology, Inc. ("NIITEK"), has been awarded a $38.4 million contract from the US Army, for the supply and initial spares of sixty four Husky Mine Detection Systems for high reliability clearance of buried mines in support of US peacekeeping operations around the world. Deliveries under the contract will be made over the period to October 2011.

Dr David Price, Chief Executive of Chemring, commented: "The USA and Canada have ordered over two hundred and forty Husky Mine Detection Systems to date, a significant number of which are already in operation. I am delighted with the success of NIITEK, and its ability to deliver systems that have made an important contribution to the safety of US and coalition forces. The contract has a potential maximum value of $78 million."

Chemring is an international leader in energetic material products and defensive countermeasures. NIITEK, which was acquired by Chemring in December 2008, is the leading US producer of vehicle-mounted Ground Penetrating Radar ("GPR") systems. NIITEK's GPR systems are at the leading edge of mine detection technology and are currently being used by US forces to protect their soldiers on the ground. 

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