Director/PDMR Shareholding

BAE SYSTEMS PLC
03 October 2006


NOTIFICATION OF TRANSACTIONS OF DIRECTORS/PERSONS DISCHARGING MANAGERIAL
RESPONSIBILITIES OR THEIR CONNECTED PERSONS


(1)  Notification made in accordance with Section 324 (as extended by Section
328) of the Companies Act 1985 and Disclosure rule 3.1.4R(1)(a) of the
Disclosure Rules.

The Company has today been notified that Mark Ronald, a Person Discharging
Managerial Responsibilities, received 85,462 ordinary shares of  2.5 pence each
in BAE Systems plc under the BAE Systems Performance Share Plan on 2 October
2006 following the vesting of an award under that Plan.  No consideration was
paid on the vesting of the award.  36,283 shares were subsequently sold on 2
October 2006 at 399.347 pence each in order to fund the associated withholding
tax incurred on vesting.  This transaction took place on the London Stock
Exchange.  The retained shares have been registered in the name of Mark Ronald.


(2)  Notification made in accordance with Disclosure rule 3.1.4R(1)(a) of the
Disclosure Rules.

The Company has today been notified that Walt Havenstein, a Person Discharging
Managerial Responsibilities, received 32,270 ordinary shares of  2.5 pence each
in BAE Systems plc under the BAE Systems Performance Share Plan on 2 October
2006 following the vesting of an award under that Plan.  No consideration was
paid on the vesting of the award.  8,452 shares were subsequently sold on 2
October 2006 at 399.347 pence each in order to fund the associated withholding
tax incurred on vesting.  This transaction took place on the London Stock
Exchange.  The retained shares have been registered in the name of Vidacos
Nominees Limited A/C SSB1.


3 October 2006




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