Holding(s) in Company

BAE SYSTEMS PLC
07 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 - 25,749,351

Bank of New York Nominees Ltd - 4,251,380

Chase Nominees Ltd - 78,459,616

BT Globenet Nominees Ltd - 1,782,791

Midland Bank plc - 32,029,815

Bankers Trust - 8,234,433

Barclays Bank - 3,929,986

Citibank London - 2,871,557

Nortrust Nominees - 22,455,408

Royal Bank of Scotland - 94,600

MSS Nominees Ltd - 265,150

State Street Bank & Trust Co - 119,900

Citibank NA - 137,081

HSBC Bank plc - 29,800

ROY Nominees Ltd - 129,700

Mellon Nominees (UK) Ltd - 2,144,409

Capital International Limited:

State Street Nominees Ltd - 2,019,000

Bank of New York Nominees - 19,829,418

Northern Trust - 856,700

Chase Nominees Ltd - 20,699,031

Midland Bank plc - 557,500

Bankers Trust - 10,270,400

Barclays Bank - 681,379

Citibank London - 462,900

Morgan Guaranty - 1,607,400

Nortrust Nominees - 13,580,414

Royal Bank of Scotland - 166,200

MSS Nominees Ltd - 697,200

State Street Bank & Trust Co - 1,805,000

Lloyds Bank - 347,300

Citibank NA - 342,300

Deutsche Bank AG - 4,261,207

HSBC Bank plc - 4,259,700

Mellon Bank N.A. - 723,403

Northern Trust AVFC - 257,600

KAS UK - 143,300

Mellon Nominees (UK) Ltd - 263,000

Bank One London - 1,203,422

Clydesdale Bank plc - 526,200

Capital International S.A.:

State Street Nominees Ltd - 104,100

Bank of New York Nominees - 393,347

Chase Nominees Ltd - 6,357,629

Credit Suisse London Branch - 285,500

Midland Bank plc - 2,070,300

Barclays Bank - 1,302,200

Citibank London - 237,700

Brown Bros - 106,000

Nortrust Nominees - 145,500

Morgan Stanley - 189,000

Royal Bank of Scotland - 4,583,194

MSS Nominees Ltd - 126,800

JP Morgan - 4,338,400

State Street Bank & Trust Co - 367,900

National Westminster Bank - 505,700

Lloyds Bank - 262,400

Vidacos Nominees Ltd - 573,105

RBSTB Nominees Ltd - 117,300

Citibank NA - 67,400

Deutsche Bank AG - 1,191,692

HSBC Bank plc - 1,143,400

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 - 1,831,099

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 - 134,800

Capital Research and Management Company:

Chase Nominees Limited - 24,161,861


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 3 January 2003

11. Date company informed
7 January 2003

12. Total holding following this notification
330,140,178 ordinary shares

13. Total percentage holding of issued class following this notification
10.86%

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
7 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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