Airbus Response

BAE SYSTEMS PLC
14 June 2006

                        Response to Airbus Announcement

14 June 2006


BAE Systems notes the announcement by Airbus last night regarding its latest
expectations for deliveries of A380 aircraft. While both Airbus shareholders
have discussed the possibilities of delays to the schedule in recent months, BAE
Systems were only informed of Airbus' planned announcement yesterday afternoon.

No assessment of the financial impact of the delays to the A380 were included in
Airbus' announcement.  No revised budget or business plan reflecting the latest
delivery plans and expectations referred to in the Airbus announcement has been
either presented to, or approved by, the Shareholder Committee of Airbus.  In
particular, the management of Airbus have yet to present proposals for
management actions designed to alleviate the financial implications of the
revised A380 deliveries.  As a result, BAE Systems does not believe any credible
or serious assessment of the likely financial impact of such delays can be made
today.

Regarding the sale of its 20% shareholding in Airbus, BAE Systems has previously
announced it has served upon EADS a formal notice of exercise of its Put Option.
BAE Systems remains confident that the process prescribed in the Shareholders'
Agreement will recognise the robustness of Airbus' long-term value over any
short-term fluctuations.

Issued by
BAE Systems plc
London

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