Acquisition

BAE SYSTEMS PLC
22 December 2007

                                                                21 December 2007


                       BAE SYSTEMS ANNOUNCES AGREEMENT TO
                         ACQUIRE MTC TECHNOLOGIES, INC

BAE Systems today announced it has entered into a definitive agreement to
acquire MTC Technologies, Inc, a Dayton, Ohio-based company providing technical
and professional services, and equipment integration and modernization for the
U.S. military and intelligence agencies.

MTC Technologies, Inc shareholders will receive U.S.$24 in cash per share of
common stock, without interest, in the transaction, representing a total
consideration for MTC Technologies, Inc  fully diluted share capital of
approximately U.S.$367 million. Including the assumption of net debt of U.S.$81
million, the transaction is valued at approximately U.S.$448 million.

For the twelve month period ended 30 September 2007, MTC Technologies, Inc
generated EBITDA of U.S.$38 million (excluding a U.S.$1.5 million restructuring
charge) on sales of U.S.$432 million.  As at 30 September 2007, MTC
Technologies, Inc had net assets of U.S.$187 million.

The acquisition of MTC Technologies, Inc is consistent with BAE Systems strategy
to grow its support solutions business in six home markets, including the United
States, where the company sees significant opportunity to address anticipated
growth in readiness and sustainment activity including the maintenance, upgrade
and support of existing air, land and naval platforms.

MTC Technologies, Inc, which currently employs approximately 2,900 people, will
be integrated into BAE Systems Customer Solutions operating group, headquartered
in Arlington, Virginia, as part of the company's Technology Solutions & Services
(TSS) line of business.

The combination of MTC Technologies, Inc with BAE Systems is an outstanding fit
with very complementary offerings, and will position the organization to bring
proven capabilities to a broader spectrum of customers.  BAE Systems has long
been recognized as a leading provider of solutions and services across a
product's life-cycle for the U.S. Navy.  MTC Technologies, Inc similar expertise
in supporting U.S. Air Force and U.S. Army programs will create an organization
poised to deliver critical solutions to its customers throughout the U.S. Armed
Forces and the U.S. intelligence community.

The proposed acquisition is conditional, among other things, upon receiving
certain required regulatory clearances and the approval of MTC Technologies,
Inc, shareholders and is expected to close in the first half of 2008.

Issued by:
BAE Systems plc
London

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