Disposal

BAE SYSTEMS PLC
06 December 2002






    BAE SYSTEMS completes the sale of the Heckler & Koch small arms business



As part of its strategy of divesting non core businesses, BAE SYSTEMS has today
completed the sale of its Heckler & Koch small arms business to a private
company.



BAE SYSTEMS plc has disposed of its interest in the equity of the four legal
entities being Heckler & Koch GmbH, Heckler & Koch Inc, Heckler & Koch S.A. and
NSAF Limited, which together comprise the Heckler & Koch small arms business.



The Heckler & Koch business manufactures small arms for both the military and
civil markets. It has approximately 700 employees, based in Germany, United
Kingdom, United States of America and Switzerland.



The Heckler & Koch business' net assets at 31 December 2001 were Euros 94
million.



6 December 2002


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