Holding(s) in Company

BAE SYSTEMS PLC
02 July 2007


TR-1:               notification of major interests in shares


1. Identity of the issuer or the underlying issuer of existing        BAE Systems plc
shares to which voting rights are attached:

2. Reason for the notification

An acquisition or disposal of voting rights                           Yes

An acquisition or disposal of financial instruments which may result in the acquisition of
shares already issued to which voting rights are attached

An event changing the breakdown of voting rights

Other (please specify): ________________________________________

3. Full name of person(s) subject to the notification                 Capital Group International, Inc.
obligation:

4. Full name of shareholder(s) (if different from 3.):

5. Date of the transaction and date on which the threshold is         28 June 2007
crossed or reached:

6. Date on which issuer notified:

                                                                      29 June 2007


7. Threshold(s) that is/are crossed or reached:                       6%


8. Notified details:


A: Voting rights attached to shares


Class/type of Situation previous to the Resulting situation after the triggering transaction
shares        Triggering transaction

if possible   Number of    Number of    Number of shares        Number of voting       % of voting rights
using the     Shares       Voting                               rights
ISIN CODE                  Rights
                                        Direct     Indirect     Direct    Indirect     Direct    Indirect

Ordinary      204,399,950  204,399,950             210,899,948            210,899,948             6.0177%
Shares


B: Financial Instruments

Resulting situation after the triggering transaction

Type of financial    Expiration date Exercise/ Conversion      Number of voting rights    % of voting
instrument                           Period/ Date              that may be acquired if    rights
                                                               the instrument is
                                                               exercised/ converted.


      N/A


Total (A+B)


Number of voting rights                            % of voting rights


  210,899,948                                           6.0177%


9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively
held, if applicable:


Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease to hold:

12. Date on which proxy holder will cease to hold voting rights:


Additional information:                      Capital Group International, Inc ('CGII') holdings

                                             Holdings by CGII Management Companies and Funds:

                                                                                Number of Shares   % of outstanding

                                             Capital Guardian Trust Company      123,042,472          3.511%

                                             Capital International Limited        44,367,788          1.266%

                                             Capital International S.A.           15,613,949          0.446%

                                             Capital International, Inc.          27,875,739          0.795%


                      This information is provided by RNS
            The company news service from the London Stock Exchange