New Organisation

BAE SYSTEMS PLC
17 January 2002

                    BAE SYSTEMS ORGANISATION AND STRUCTURE

BAE SYSTEMS announces further developments of its organisational structure.
The resultant structure recognises the changes in its business over the last
two years and the evolution of the business strategy.

'This new structure will be more closely aligned to our business sector
strategy with a clear focus on Air, Sea, Solutions and Support and C4ISR. The
new structure recognises the growing importance of our North American
activities, and improves resource deployment across the company,' said John
Weston, chief executive of BAE SYSTEMS.

Effective immediately, the new organisation's salient points are:

BAE SYSTEMS plc

Sir Charles Masefield is appointed Vice Chairman. He will increasingly move to
a roving ambassador role, as he progressively hands over the running of the
marketing operations. Mike Rouse is appointed as Group Marketing Director
reporting to Sir Charles.

The composition of the Board of Directors is unchanged and remains as follows:


    Executive Directors

    Sir Richard Evans, Chairman

    John Weston, Chief Executive

    Michael Lester, Group Legal Director

    Sir Charles Masefield, Vice Chairman

    Steve Mogford, Chief Operating Officer

    George Rose, Group Finance Director

    Mike Turner, Chief Operating Officer

    Non-Executive Directors

    Sir Robin Biggam

    Professor Sue Birley

    Keith Brown

    Dr. Ulrich Cartellieri

    Sir Ronald Hampel

    Lord Hesketh

    Paolo Scaroni

The company will be managed through three Chief Operating Officers (COO),
reporting to the Chief Executive. In addition to Steve Mogford and Mike
Turner, Mark Ronald is appointed COO, with responsibility for the North
America business.


  * BAE SYSTEMS North America, Mark Ronald, COO and President

This appointment recognises the growing importance of our North American
operations and the strategic value of our US government customers; as well as
closer ties and co-operation between the US and UK governments. The
organisation of the North America business remains unchanged.

BAE SYSTEMS Programmes, Steve Mogford, COO.

Reporting to Steve Mogford are:

      + BAE SYSTEMS Air Systems, Nigel Whitehead, Group Managing Director,
        includes Eurofighter, JSF, Nimrod, and Hawk.
      + BAE SYSTEMS Sea Systems, Brian Phillipson, Group Managing Director,
        includes the Marine business, Astute Submarine, Type 45 Destroyer,
        Export Shipbuilding, and Underwater Weapons.
      + BAE SYSTEMS Customer Solutions and Support, Ian King, Group Managing
        Director, an important growth area for the company.
      + BAE SYSTEMS C4ISR (Command/Control, Communications, Computing,
        Intelligence, Surveillance and Reconnaissance), Phill Blundell, Group
        Managing Director, focussed on key prime contracts in the UK. Centred
        on Communications and Defence Infrastructure, previously part of
        Avionics, includes TRACER/FRES, Skynet V (post selection), and
        Watchkeeper.

BAE SYSTEMS Operational, Capital and Shared Services Businesses, Mike Turner,
COO.

Mike Turner manages the BAE SYSTEMS relationship with Airbus and is
responsible for:

      + BAE SYSTEMS Avionics, Chris Geoghegan, Group Managing Director
      + BAE SYSTEMS International Partnerships, Stephen Henwood, Group
        Managing Director
      + BAE SYSTEMS Shared Services, Alastair Imrie, Group Managing Director
      + BAE SYSTEMS RO Defence, Clive Richardson, Managing Director
      + BAE SYSTEMS Aircraft Services Group, Mike O' Callaghan, Managing
        Director
      + BAE SYSTEMS Aerostructures, Dave Griffiths, Managing Director
      + BAE SYSTEMS Ventures, Managing Director - tba
      + BAE SYSTEMS Capital Ltd, Terence Black, Managing Director
      + Future Carrier Prime Contract Office, Mark Kane, Managing Director

Issued by BAE SYSTEMS plc, London