Holding(s) in Company

BAE SYSTEMS PLC
02 January 2003

                                  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 - 25,055,651

Bank of New York Nominees Ltd - 4,135,980

Chase Nominees Ltd - 76,019,616

BT Globenet Nominees Ltd - 1,729,791

Midland Bank plc - 31,405,815

Bankers Trust - 7,999,933

Barclays Bank - 3,835,586

Citibank London - 2,789,357

Nortrust Nominees - 21,739,208

Royal Bank of Scotland - 92,000

MSS Nominees Ltd - 259,850

State Street Bank & Trust Co - 117,200

Citibank NA - 134,481

HSBC Bank plc - 29,800

ROY Nominees Ltd - 127,000

Mellon Nominees (UK) Ltd - 2,065,309

Capital International Limited:

State Street Nominees Ltd - 1,762,400

Bank of New York Nominees - 19,289,918

Northern Trust - 856,700

Chase Nominees Ltd - 19,597,431

Midland Bank plc - 527,800

Bankers Trust - 10,217,200

Barclays Bank - 634,179

Citibank London - 412,100

Morgan Guaranty - 1,582,100

Nortrust Nominees - 12,590,614

Royal Bank of Scotland - 133,800

MSS Nominees Ltd - 574,500

State Street Bank & Trust Co - 1,645,300

Lloyds Bank - 311,000

Citibank NA - 294,800

Deutsche Bank AG - 4,198,507

HSBC Bank plc - 4,121,800

Mellon Bank N.A. - 723,403

Northern Trust AVFC - 257,600

KAS UK - 119,500

Mellon Nominees (UK) Ltd - 263,000

Bank One London - 1,106,522

Clydesdale Bank plc - 460,300

Capital International S.A.:

State Street Nominees Ltd - 87,000

Bank of New York Nominees - 393,347

Chase Nominees Ltd - 5,957,129

Credit Suisse London Branch - 285,500

Midland Bank plc - 2,046,700

Barclays Bank - 1,226,400

Citibank London - 166,600

Brown Bros - 106,000

Nortrust Nominees - 124,500

Morgan Stanley - 165,000

Royal Bank of Scotland - 4,559,194

MSS Nominees Ltd - 126,800

JP Morgan - 3,686,400

State Street Bank & Trust Co - 291,500

National Westminster Bank - 460,100

Lloyds Bank - 217,900

Vidacos Nominees Ltd - 573,105

RBSTB Nominees Ltd - 104,200

Citibank NA - 67,400

Deutsche Bank AG - 1,074,692

HSBC Bank plc - 903,000

Capital International, Inc:

State Street Nominees Ltd - 4,521,900

Bank of New York Nominees - 811,200

Chase Nominees Ltd - 4,011,000

Midland Bank plc - 306,700

Deutsche Bank Mannheim - 49,900

Bankers Trust - 37,000

Citibank London - 140,600

Nortrust Nominees - 1,474,099

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 - 112,200

Capital Research and Management Company:

Chase Nominees Limited - 12,591,952


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 23 December 2002

11. Date company informed
24 December 2002

12. Total holding following this notification
307,316,369 ordinary shares

13. Total percentage holding of issued class following this notification
10.05%

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
2 January 2003

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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