Dividend - Clarification

BAE Systems PLC
1 December 2000


The following information has been released in order to clarify the position
regarding the partial capital repayment associated with this loan stock. 

SECURITY TITLE
*7.45% Uns Cap Amortising Ln Stk 2000/03
MNEMONIC CODE                *BA.B
SEDOL CODE                   *877-420
PARTIAL REDEMPTION AMOUNT    *22.373p (Net)                   
DEEMED EX DATE               *30-10-00
RECORD DATE                  *03-11-00
PAYMENT DATE                 *29-11-00
NOTES *Information relating to the annual interest payment was included in 
       the Dividend Information List released at 17:29 on 24 October 2000 under
       RNS:9538S.