Acquisition

BAE SYSTEMS PLC
01 March 2006



            MBDA completes acquisition of German missile company LFK



1 March 2006



The European missile systems company, MBDA, today announced that it has
completed the acquisition of EADS' 81.25% shareholding in
LFK-Lenkflugkorpersysteme GmbH ('LFK'), the German guided weapons company.

MBDA already owned the remaining 18.75% shareholding in LFK.  Completion follows
clearances by the European Commission and by the German Ministry of Economy and
Technology.



The transaction also included MBDA's acquisition of EADS' TDW and VM guided
weapons and guided weapons subsystems businesses.



The total amount of the gross assets of LFK, TDW and VM amounted to €307 million
on 31 December 2004.



The acquisition, announced by MBDA last year, was approved by the three
shareholders of MBDA, EADS (37.5%), BAE Systems (37.5%) and Finmeccanica (25%).



Issued by

BAE Systems plc

London


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