Director/PDMR Shareholding

BAE SYSTEMS PLC
22 February 2007



NOTIFICATION OF TRANSACTIONS OF PERSONS DIRECTORS OR THEIR CONNECTED PERSONS





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



The following interests of Directors in options over ordinary shares of 2.5p
each in BAE Systems plc have ceased as the options to which they relate under
the BAE Systems Executive Share Option Plan have lapsed on 21 February 2007 due
to the related performance conditions not having been met.


Name of Director                Number of ordinary shares under option     Option Price
                                which have lapsed:


Chris Geoghegan                 89,552                                     335 pence
Chris Geoghegan                 119,938                                    326 pence
Ian King                        90,090                                     335 pence
Steve Mogford                   233,433                                    335 pence
George Rose                     259,701                                    335 pence
Mike Turner                     277,015                                    335 pence





22 February 2007






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