AGM Statement

BAE SYSTEMS PLC
29 April 2003



                    BAE SYSTEMS plc - Annual General Meeting

BAE SYSTEMS plc today holds its Annual General Meeting of shareholders. At the
meeting Sir Richard Evans, Chairman, will confirm that trading in the first few
months of the year has been consistent with the outlook for the Group indicated
at the time of the publication of the Report and Accounts. That is, that the
underlying trading performance for the company's defence businesses in 2003 is
expected to remain broadly in line with that for 2002 before taking account of
the exceptional charges in 2002 for the Nimrod and Astute contracts.

Programmes performance is expected to be restrained by low export activity and
with production programmes still in early phases of maturity. Restructuring of
the Nimrod and Astute contracts is expected to benefit future performance over
the long term and good sustained growth is anticipated in UK defence support
activity and across the company's operations in North America.

Airbus plans a similar volume of activity for 2003 as for 2002, however the
commercial airline market remains difficult to predict.

Issued by

BAE SYSTEMS plc

London


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