Analysts Meeting re Merger with Marconi

British Aerospace PLC
3 May 2000

Statement to Stock Exchange
                                                                   
                                                                              
British Aerospace plc (BAE SYSTEMS) will today meet with analysts to describe
the scope and capability of the company following the merger with Marconi
Electronic Systems (MES) completed on 30 November 1999.

The following pro forma financial information for the sectors of the merged
company is now provided.

                                Pro-forma 1999
                                Sales    PBIT
                                    £m      £m
       Major Programmes          2,608     390
       Customer Support          1,958     444
       International             1,779      71
       Partnerships
       Avionics                  1,184      95
       North America             1,436     149
       Operations                1,183       0
       Commercial Aerospace      2,970    (10)
       Other businesses / HQ     (749)    (25)
       TOTAL BAE SYSTEMS        12,369   1,114


Issued by
British Aerospace PLC
Warwick House
Farnborough