Holding(s) in Company

BAE SYSTEMS PLC
20 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
The Capital Group Companies, Inc. on behalf of its affiliates, including Capital
Research and Management Company, Capital International Inc., Capital
International S.A., Capital International Limited, and Capital Guardian Trust
Company

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
Capital Guardian Trust Company:

State Street Nominees Ltd - 23,988,251

Bank of New York Nominees Ltd - 3,905,780

Chase Nominees Ltd - 71,946,016

BT Globenet Nominees Ltd - 1,645,391

Midland Bank plc - 30,223,015

Bankers Trust - 7,591,833

Barclays Bank - 3,631,186

Citibank London - 2,638,557

Nortrust Nominees - 20,663,608

Royal Bank of Scotland - 88,500

MSS Nominees Ltd - 249,850

State Street Bank & Trust Co - 103,500

Citibank NA - 128,281

HSBC Bank plc - 29,800

ROY Nominees Ltd - 123,500

Mellon Nominees (UK) Ltd - 1,940,809

Capital International Limited:

State Street Nominees Ltd - 1,584,200

Bank of New York Nominees - 17,576,776

Northern Trust - 856,700

Chase Nominees Ltd - 18,999,431

Midland Bank plc - 507,600

Bankers Trust - 10,179,300

Barclays Bank - 601,079

Citibank London - 376,500

Morgan Guaranty - 1,565,500

Nortrust Nominees - 11,973,302

Royal Bank of Scotland - 111,500

MSS Nominees Ltd - 488,500

State Street Bank & Trust Co - 1,533,600

Lloyds Bank - 285,900

Citibank NA - 261,500

Deutsche Bank AG - 4,153,707

HSBC Bank plc - 4,025,300

Mellon Bank N.A. - 723,403

Northern Trust AVFC - 257,600

KAS UK - 104,400

Mellon Nominees (UK) Ltd - 263,000

Bank One London - 1,031,322

Clydesdale Bank plc - 417,700

Capital International S.A.:

State Street Nominees Ltd - 77,000

Bank of New York Nominees - 393,347

Chase Nominees Ltd - 5,684,129

Credit Suisse London Branch - 285,500

Midland Bank plc - 2,031,800

Barclays Bank - 1,174,400

Citibank London - 150,800

Brown Bros - 106,000

Nortrust Nominees - 112,300

Morgan Stanley - 149,600

Royal Bank of Scotland - 4,543,794

MSS Nominees Ltd - 126,800

JP Morgan - 3,229,000

State Street Bank & Trust Co - 274,600

National Westminster Bank - 445,900

Lloyds Bank - 186,900

Vidacos Nominees Ltd - 573,105

RBSTB Nominees Ltd - 92,600

Citibank NA - 67,400

Deutsche Bank AG - 1,048,392

HSBC Bank plc - 806,800

Capital International, Inc:

State Street Nominees Ltd - 4,521,900

Bank of New York Nominees - 811,200

Chase Nominees Ltd - 4,011,00

Midland Bank plc - 306,700

Deutsche Bank Mannheim - 49,900

Bankers Trust - 37,000

Citibank London - 140,600

Nortrust Nominees - 1,344,099

Royal Bank of Scotland - 342,800

State Street Bank & Trust Co - 474,100

Citibank - 53,000

RBSTB Nominees Ltd - 90,200

Citibank NA - 379,300

Deutsche Bank AG - 56,400

Chase Manhattan Nominee Ltd - 24,500

HSBC Bank plc - 98,100

Capital Research and Management Company:

Chase Nominees Limited - 5,314,201


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 as at 18 December 2002

11. Date company informed
19 December 2002

12. Total holding following this notification
286,390,864 ordinary shares

13. Total percentage holding of issued class following this notification
9.36%

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
20 December 2002

The FSA does not give any express or implied warranty as to the accuracy of this
document or material and does not accept any liability for error or omission.
The FSA is not liable for any damages (including, without limitation, damages
for loss of business or loss of profits) arising in contract, tort or otherwise
from the use of or inability to use this document, or any material contained in
it, or from any action or decision taken as a result of using this document or
any such material.


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