Disposal

BAE SYSTEMS PLC
13 September 2002


BAE SYSTEMS plc

BAE SYSTEMS AGREES TO SELL US COMMUNICATIONS EQUIPMENT FACILITY

BAE SYSTEMS has today reached definitive agreement with Integrated Defense
Technologies Inc. for the sale of part of the Advanced Systems division of BAE
SYSTEMS North America Inc. for $146 million in cash. The business designs and
manufactures high performance radio frequency surveillance equipment used in
signals intelligence applications and employs over 300 people in Gaithersburg,
Maryland, USA. The business unit had sales in 2001 of $65.2 million.

Closing of the sale agreement is expected to occur within 60 days, subject to
regulatory clearance.

13 September 2002


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