AGM Statement

BAE SYSTEMS PLC
05 May 2004

5 May 2004


At BAE Systems AGM today, the Company re-confirmed its outlook position for 2004
as:

Trading in the first few months of the year has been consistent with the outlook
for the Group as indicated at the time that we issued the preliminary
announcement of the 2003 results. That is for good sustained underlying growth
across the Company's operations in North America and in International
Partnerships, with some recovery in the Avionics business.

The performance of the Programmes business is expected to continue to be
restrained with some UK MoD production programmes still in early phases of
maturity. Margins in Customer Solutions and Support are likely to continue to
trend downwards.

Overall, the underlying performance of the Company's defence businesses in 2004
is expected to be slightly ahead of 2003.

Airbus plans a volume of activity for 2004 similar to 2003, with a slightly
lower value mix of deliveries.

Issued by
BAE Systems plc,
London


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