Bond Offering

BAE SYSTEMS PLC
10 December 2001

BAE SYSTEMS plc



BAE SYSTEMS Announces Bond Offering

BAE SYSTEMS announces that it has agreed to sell USD one billion of guaranteed
notes due 2011 in a private offering to institutional investors. A portion of
the proceeds will be used to refinance outstanding short-term indebtedness,
including by repaying outstanding short-term commercial paper, in order to
lengthen the company's average debt maturity profile. The balance of the
proceeds will be used for general corporate purposes.

The guaranteed notes have not been registered under the Securities Act of 1933
or any state securities laws and, unless so registered, may not be offered or
sold except pursuant to an applicable exemption from the registration
requirements of the Securities Act of 1933 and applicable state securities
laws.





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