Acquisition

BAE SYSTEMS PLC
05 April 2004


5 April, 2004


BAE SYSTEMS TO PURCHASE STI GOVERNMENT SYSTEMS

BAE Systems North America today announced it has reached a definitive agreement
with STI Industries, Inc. (STI), to purchase the assets of STI Government
Systems for $27 million in cash. STI Government Systems employs 125 people and
is headquartered in Honolulu, Hawaii.

STI Government Systems is a leader in developing innovative solutions for U.S.
government customers with its expertise in photonics, information technologies
and system integration. Currently, STI Government Systems supports the U.S. Navy
in defense applications of its technologies and also provides a variety of
services to other government agencies in areas such as pollution mapping and
search and rescue.

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


Issued by
BAE Systems plc
London



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