Disposal

BAE SYSTEMS PLC
30 December 2005



                  BAE Systems agrees sale of ATLAS ELEKTRONIK


30 December 2005


BAE Systems has today agreed the sale of all of the share capital of ATLAS
ELEKTRONIK GmbH ('Atlas'), the Bremen-based naval electronics company, to
ThyssenKrupp Technologies AG and EADS Deutschland GmbH for a cash consideration
of approximately €145m.  In addition, pension liabilities of €72.4m will remain
with Atlas following the sale.


In 2004, Atlas had sales of €292.4m, generating EBIT of €9.3m.


Completion of the sale is conditional upon regulatory approvals and the approval
of the Supervisory Board of ThyssenKrupp AG being given and is expected to take
place next year.


Issued by

BAE Systems plc

London

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