Joint Venture Agreement

RNS Number : 2749D

BAE SYSTEMS PLC

30 November 2009

MAHINDRA AND BAE SYSTEMS SIGN JOINT

VENTURE AGREEMENT

BAE Systems has today entered into a legally binding Joint Venture Agreement with Mahindra & Mahindra Limited ("Mahindra") to create a land systems focused joint venture defence company, based in India.

BAE Systems will have a 26% shareholding in the Joint Venture and Mahindra will have a 74% shareholding. The parties have agreed to contribute US$21.25million, with

BAE Systems investing US$5.83 million in cash and Mahindra contributing the balance.

Completion of the transaction is conditional upon required regulatory approvals and the joint venture is expected to be established in the first half of 2010.

Issued by:

BAE Systems plc
London