ASTRIUM

BAE SYSTEMS PLC
23 December 2002

23rd December, 2002


BAE SYSTEMS

ASTRIUM

The agreement in relation to the sale to EADS of BAE SYSTEMS' interest in the
Astrium space joint venture, announced on 25 July 2002, has lapsed without the
sale having been completed.

BAE SYSTEMS and EADS have agreed to resume discussions in relation to Astrium in
the New Year.

BAE SYSTEMS has consolidated a loss in its first half results in respect of its
27.5% share of the Astrium results. Astrium's trading environment has continued
to deteriorate during the second half of 2002.

Issued on behalf of
BAE SYSTEMS
London
END


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