Disposal

BAE Systems PLC
14 February 2001





                    Announcement to London Stock Exchange

                                                              14 February 2001



    BAE SYSTEMS agrees to sell its Flight Simulation and Training business




BAE SYSTEMS announced today that it had reached agreement to sell Flight
Simulation and Training, based in Tampa, Florida, to CAE of Toronto, Canada,
for $80 million cash,

The transaction is expected to be completed in the first quarter of 2001,
subject to receiving regulatory approvals in the United States.

This transaction is for the sale of the U.S. based Flight Simulation and
Training business which currently employs 773 people. The simulation and
training business within BAE SYSTEMS Customer Solutions and Support (CS&S) in
the UK will remain part of CS&S.

BAE SYSTEMS Flight Simulation and Training provides aviation training and
simulation solutions.



Issued by:-

BAE SYSTEMS plc

London