Disposal

BAE SYSTEMS PLC
07 January 2003



                       BAE SYSTEMS COMPLETES SALE OF ITS

                     LAND PLATFORM COMMUNICATIONS BUSINESS

                                                                  7 January 2003

Consistent with its strategy, BAE SYSTEMS has divested its non-core Land
Platform Communications business (LPC) to Cobham plc for a cash consideration of
£30 million.

LPC designs, develops and manufactures the ROVIS advanced digital military
vehicle intercom system which it supplies to a wide range of fighting vehicle
platforms within the US and 13 other countries worldwide.

In 2002 LPC generated revenues in excess of £25million. It has approximately 100
employees and is based in Blackburn, Lancashire.


Issued by

BAE SYSTEMS plc

London


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