McMurdo sold

Chemring Group PLC announces that it has agreed a conditional sale of its McMurdo electronics business to Signature Industries Limited, manufacturers of the SARBE Emergency Location Beacons.

McMurdo manufactures and supplies emergency location beacon and Navtex products for commercial and leisure marine and aviation markets. Additionally, McMurdo is the UK distributor for the Davis range of weather stations. Completion, which is conditional upon the transfer of certain product approvals, is expected to take place in the first quarter of 2007.

Robert Hill, MD of McMurdo Ltd, commented: “This sale completes the Chemring plc strategy of disposal of their electronics businesses. Signature is already a world leader in the military survival beacons market. The combined entity will be a world leading supplier to the Cospas-Sarsat Emergency Location Beacon market, covering military, commercial and leisure markets. This, together with the disposal of the McMurdo marine lights business, which was completed in June 2006, will realise cash of approximately £7.0 million (before receipt of any deferred contingent consideration).