Acquisition

BAE SYSTEMS PLC
08 July 2004


BAE Systems to purchase Practical Imagineering, inc.

                                                                     8 July 2004

BAE Systems North America today reached a definitive agreement with Practical
Imagineering, Inc., (PI) to purchase all of the stock of the company for $8.3
million in cash.

PI, a privately held company based in Reston, Va., provides high quality
research and development services and products to U.S. Government National
Agencies, Federal Law Enforcement Agencies, related contractors and scientific
organizations. The main business area is designing and building custom Digital
Signal Processing algorithms, software and hardware, and providing high-end
support technology to DSP projects.

The 10-year-old company employs more than 30 engineers and scientists.

Galen Ho, president of BAE Systems Information & Electronic Systems Integration
Sector, said, 'We're excited that PI will be joining BAE Systems. Their strength
in analysis and processing research and high-quality technical work force align
well with BAE Systems' growth strategy in information operations.'

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 plc

London


















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