Merger With MES Complete

British Aerospace PLC 29 November 1999 Not for release, publication or distribution in or into Canada, Australia or Japan BRITISH AEROSPACE PUBLIC LIMITED COMPANY ('British Aerospace') MERGER OF BRITISH AEROSPACE WITH MES COMPLETED British Aerospace announces that the merger with MES, the defence electronics business of The General Electric Company, p.l.c. ('GEC'), (the 'Merger') has become effective today. The Merger creates the third largest aerospace and defence company in the world, with leading-edge technology. Detailed discussions on the undertakings with the Secretary of State for Trade and Industry continue. It is anticipated that agreement on the specific terms of the undertakings will be reached before 9 February 2000. Based on the number of ordinary shares of GEC in issue as at 4.30 p.m. on Friday, 26 November 1999, each former ordinary shareholder of GEC will be entitled to 0.42879282 new British Aerospace ordinary shares and 13.542904 pence in nominal value of capital amortising loan stock ('CALS'). Fractions of new British Aerospace ordinary shares will not be allotted but will be aggregated and sold and the net proceeds will be paid to the former ordinary shareholders of GEC entitled thereto. The nominal amount of CALS due to former ordinary shareholders of GEC will be rounded down to the nearest whole number of pounds. Certificates for the new British Aerospace ordinary shares and CALS being issued in connection with the Merger and, where applicable, cheques in respect of fractional entitlements will be dispatched to former ordinary shareholders of GEC within 10 business days (subject, in the case of the ordinary shares and payments in respect of fractional entitlements to such shares, to receipt of an appropriate nationality declaration). It is expected that admission of the new British Aerospace ordinary shares and CALS to be issued pursuant to the Merger will become effective at 8.00 a.m. tomorrow, 30 November 1999, and that dealings in these will commence shortly thereafter. Enquiries: British Aerospace 01252 373 232 Locksley Ryan Andrew Wrathall Dresdner Kleinwort Benson 0171 623 8000 Tim Shacklock Mark Hammond Goldman Sachs 0171 774 1000 Simon Robertson Simon Dingemans Kleinwort Benson Limited ('Dresdner Kleinwort Benson') and Goldman Sachs International ('Goldman Sachs'), which are regulated in the UK by The Securities and Futures Authority Limited, are acting for British Aerospace in connection with the Merger and for no-one else and will not be responsible to anyone other than British Aerospace for providing the protections afforded to customers of Dresdner Kleinwort Benson and Goldman Sachs or for giving advice in relation to the Merger. This announcement does not constitute, or form part of, an offer or any solicitation of an offer for securities. Neither this document nor any copy of it may be taken, transmitted or distributed, directly or indirectly, into Canada, Australia or Japan. Any failure to comply with this restriction may constitute a violation of Canadian, Australian or Japanese securities laws. None of the new British Aerospace ordinary shares, the 7.45 per cent. Unsecured Capital Amortising Loan Stock 2000/2003 of British Aerospace, to be issued in connection with the Merger, nor any other securities proposed to be issued in connection with the Merger will be registered under the US Securities Act of 1933 or under the securities laws of any state of the United States and they may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration. This announcement is not an offer of any such securities for sale in the United States or elsewhere.

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