Acquisition

BAE SYSTEMS PLC
17 February 2003



            BAE SYSTEMS TO PURCHASE ADVANCED POWER TECHNOLOGIES, INC

BAE SYSTEMS has reached a definitive agreement with Advanced Power Technologies,
Inc. (APTI), to purchase the corporation for $27 million in cash.

APTI, a private company with headquarters in Washington, D.C., focuses on
Intelligence, surveillance, reconnaissance exploitation and information
processing for defense, civil and commercial uses.

Its core competencies include radio frequency (RF) and optical engineering,
communications and networking, signal and data exploitation and knowledge
creation.

The 17-year-old company also has facilities in Virginia, Maryland and Alaska.
APTI employs more than 100 people and had 2002 revenues of approximately $26
million.

Closing of the transaction is expected to occur within 45 days and is subject to
completion of certain regulatory reviews and approvals.

Issued by

BAE SYSTEMS

London


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