Conversion of Securities

BAE SYSTEMS PLC
03 April 2007



BAE SYSTEMS plc


7.75p (net) Cumulative Convertible Redeemable Preference Shares of 25p each 
('Convertible Preference Shares')



FINAL OPPORTUNITY TO CONVERT AND CONVERSION RATE


Holders of the above security ('Preference Shareholders') will have one final
opportunity to convert the above security into Ordinary Shares of 2.5p each in
BAE Systems plc ('Ordinary Shares') on 31 May 2007.


A notice reminding Preference Shareholders of their conversion rights will be
sent to registered Preference Shareholders during April 2007 detailing the
conversion rights procedure.


BAE Systems confirms that the preference share conversion rate on 2 April 2007
was 0.47904 Ordinary Shares for every Convertible Preference Share and does not
expect this conversion rate to change prior to the conversion date of 31 May
2007.


3 April 2007


Enquiries:  Ann-Louise Holding, Assistant Company Secretary (tel: [phone]).


                      This information is provided by RNS
            The company news service from the London Stock Exchange