Acquisition

BAE SYSTEMS PLC
16 August 2004





                         BAE SYSTEMS acquisition of AEI

                                                                16th August 2004

BAE Systems today announced it has purchased the 50% share in Aerosystems
International Limited (AeI) previously owned by GKN plc for £14.5 million in
cash. BAE Systems already holds 50% of AeI shares and with this purchase AeI
becomes a wholly owned subsidiary of BAE Systems.

AeI employs approximately 400 people both in the UK and overseas and is
headquartered in Yeovil, Somerset.

AeI is a leading company in the analysis, design, development and delivery of
complex, software intensive systems for the defence industry. AeI also develops
cutting edge systems and smart technologies for various industrial applications.

AeI becomes part of the BAE SYSTEMS Customer Solutions & Support business.



Issued by

BAE Systems plc

London


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