Disposal

BAE SYSTEMS PLC
24 April 2007



                      BAE Systems agrees sale of INERTIAL PRODUCTS



24 April 2007



BAE Systems has agreed the sale of its Inertial Products business to investment
affiliates of J. F. Lehman & Company, the U.S. private equity firm, for a cash
consideration of $140m, subject to adjustment according to the level of working
capital and net debt or net cash in the business at closing.



The business is comprised of BAE Systems Inertial Products Inc., based in
Cheshire, Connecticut, and BAE Systems' inertial products business in Plymouth,
U.K., (including its 50% shareholding in Silicon Sensing Systems Limited). 
Inertial Products supplies to military and commercial customers inertial sensors
and measurement units for the control, navigation and guidance of air and ground
vehicles, precision weapons systems, missiles and aerial targets as well as
digital terrain systems for aircraft. The business employs approximately 810
people.



Completion of the sale is conditional upon, among other things, regulatory
approval being given and is expected to take place in the second half of 2007.



Issued by
BAE Systems plc
London






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