Acquisition

BAE SYSTEMS PLC
02 September 2003


BAE SYSTEMS COMPLETES PURCHASE OF GKN'S 29% STAKE IN ALVIS


BAE SYSTEMS plc having received regulatory clearance in Germany, has completed
the purchase of 31,882,534 shares, representing approximately 29% of the issued
share capital, in Alvis plc from GKN plc for £73 million in cash (equivalent to
230p per Alvis share).

Alvis is one of the world's leading manufacturers of armoured fighting vehicles.
It has operations in the UK, Scandinavia and South Africa. Its vehicles combine
advanced software and electronic systems with leading-edge vehicle, weapon and
protection technology.



2 September 2003


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