Director Shareholding

BAE Systems PLC
1 December 2000

                       DEALINGS BY DIRECTORS


1)  NAME OF COMPANY

    BAE SYSTEMS PLC


2)  NAME OF DIRECTOR

    GEORGE ROSE

3)  Please state whether notification indicates that it is in respect of
    holding of the shareholder named in 2 above or in respect of a
    non-beneficial interest or in the case of an individual holder
    if it is a holding of that person's spouse or children under the
    age of 18 or in respect of an non-beneficial interest

    NOTIFICATION RELATES TO A HOLDING OF THE DIRECTOR
    NAMED IN 2 ABOVE

4)  Name of the registered holder(s) and, if more than one holder, the
    number of shares held by each of them. (If notified)


    GEORGE ROSE

5)  Please state whether notification relates to a person(s) connected
    with the Director named in 2 above and identify the connected person(s)



6)  Please state the nature of the transaction. For PEP transactions
    please indicate whether general/single co PEP and if discretionary/non
    discretionary

    ACQUISITION OF SHARES THROUGH DIVIDEND
    REINVESTMENT PLAN

7)  Number of shares/amount of
    stock acquired

    166

8)   (NOT SIGNIFICANT)
    of issued Class


9)  Number of shares/amount
    of stock disposed



10)  ( N/A %)
    of issued Class


11) Class of security

    ORDINARY SHARES OF 2.5P EACH


12) Price per share

    364.44 PENCE

13) Date of transaction

    30 NOVEMBER 2000

14) Date company informed

     1 DECEMBER 2000

15) Total holding following this notification

    109,383

16) Total percentage holding of issued class following this notification

    NOT SIGNIFICANT

     IF A DIRECTOR HAS BEEN GRANTED OPTIONS BY THE COMPANY PLEASE
                    COMPLETE THE FOLLOWING BOXES

17) Date of grant



18) Period during which or date on which exercisable



19) Total amount paid (if any) for grant of the option



20) Description of shares or debentures involved: class, number.



21) Exercise price (if fixed at time of grant) or indication that price
    is to be fixed at time of exercise



22) Total number of shares or debentures over which options held
    following this notification

    NO CHANGE TO DIRECTOR'S INTERESTS OVER OPTIONS

23) Any additional information



24) Name of contact and telephone number for queries

    ANN-LOUISE HOLDING    TEL [phone]

25) Name and signature of authorised company official responsible for
    making this notification

   Date of Notification  1 DECEMBER 2000