Chemring Regulatory News (CHG)

FOR IMMEDIATE RELEASE 17 MARCH 2017

CHEMRING GROUP PLC

DIRECTORS' REMUNERATION POLICY AND PROPOSED NEW INCENTIVE PLAN

The notice of annual general meeting ("AGM") of Chemring Group PLC (the "Company") to be held today, 17 March 2017, includes at resolution 2 a proposal to adopt a new directors' remuneration policy (the "New Policy"), which would replace the existing directors' remuneration policy, and at resolution 14 a proposal to establish the Chemring Incentive Plan (the "CIP") in line with the New Policy. The New Policy was developed in line with the Investment Association's Executive Remuneration Working Group alternative model proposals. 

Following consultations with shareholders, the Company announces that it no longer intends to seek shareholders' approval for the New Policy or the CIP at the AGM, and that the directors' remuneration policy and its associated metrics as approved by shareholders at the Company's AGM held in 2016 will continue to apply.

Chairman Carl-Peter Forster said: "We have been actively engaging with shareholders regarding long-term incentives for some time and, while we received majority support for the proposed revised approach, the Board believes that the right course of action now is to withdraw the resolutions and consider these plans further.

"The Board continues to believe that revising the policy is necessary for retaining and attracting the right calibre of talent to ensure the continued sustainable growth of the business and we will re-engage with shareholders to reach a consensus on this important issue."

-ENDS-

For further information:

Daniel Dayan Remuneration Committee Chair, 01794 833901

Chemring Group PLC

Rupert Pittman Group Director of Corporate Affairs,

Chemring Group PLC

Andrew Jaques MHP Communications 020 3128 8100

John Olsen

James White