Director/PDMR Shareholding

BAE SYSTEMS PLC
25 July 2005

NOTIFICATION OF TRANSACTIONS OF PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY 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)(a) of the Disclosure Rules.

The Company was notified on 25 July 2005 by the trustee of the BAE Systems Share
Incentive Plan, Hill Samuel ESOP Trustees Limited, that on 21 July 2005 the
following Persons Discharging Managerial Responsibility ('PDMRs') purchased
ordinary shares of 2.5 pence each in BAE Systems plc under the Partnership
Shares element of the BAE Systems Share Incentive Plan at a price of 289.53
pence per share. All transactions took place on the London Stock Exchange. The
shares are held in the trustee's name.

The number of shares purchased by each PDMR is as follows:


Name of PDMR               Number of BAE Systems plc       
                           Ordinary shares acquired


Michael Lester             518

Steve Mogford              43

George Rose                518

Mike Turner                518

Alastair Imrie             518

Ian King                   43



25 July 2005




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