Holding(s) in Company

BAE SYSTEMS PLC
19 December 2002

                                  SCHEDULE 10

                   NOTIFICATION OF MAJOR INTERESTS IN SHARES

1. Name of company

BAE SYSTEMS plc

2. Name of shareholder having a major interest

Franklin Resources, Inc. including Franklin Mutual Advisers, LLC and Templeton 
Worldwide, Inc.

3. Please state whether notification indicates that it is in respect of holding
of the shareholder named in 2 above or in respect of a non-beneficial interest
or in the case of an individual holder if it is a holding of that person's
spouse or children under the age of 18

Shareholder named in 2 above.

4. Name of the registered holder(s) and, if more than one holder, the number of
shares held by each of them

Bank of New York Europe Ltd - 30,884

Bank of New York, London - 4,368,935

Cede, New York - 4,054,260

Chase Nominees Ltd - 186,115,362

Citibank Nominess Ltd - 501,699

Clydesbank Bank PLC - 11,782,183

Deutsche Bank AG - 3,184,004

HSBC Bank - 534,393

Merrill Lynch - 3,451,605

Northern Trust Company - 4,309,286

Royal Trust Corp of Canada - 10,925,618

State Street Nominees Ltd - 18,240,255


5. Number of shares / amount of stock acquired

N/A

6. Percentage of issued class

N/A

7. Number of shares / amount of stock disposed

N/A

8. Percentage of issued class

N/A

9. Class of security

Ordinary shares of 2.5 pence each

10. Date of transaction

Not disclosed. Figures given at 16 December 2002.

11. Date company informed

19 December 2002

12. Total holding following this notification

247,498,484 ordinary shares





13. Total percentage holding of issued class following this notification

8.0881%

14. Any additional information

Notification received under s198 CA85

15. Name of contact and telephone number for queries

Ann-Louise Holding [phone]

16. Name and signature of authorised company official responsible for making
this notification

Ann-Louise Holding, Assistant Company Secretary

Date of notification

19 December 2002

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for loss of business or loss of profits) arising in contract, tort or otherwise
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it, or from any action or decision taken as a result of using this document or
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