Re Contract

BAE SYSTEMS PLC
04 September 2003

4 September 2003

BAE SYSTEMS WELCOMES THE SELECTION OF HAWK AS THE INDIAN ADVANCED JET TRAINER.

BAE SYSTEMS welcomes the news that the Indian Government has selected the Hawk
advanced jet trainer aircraft for the Indian Air Force and looks forward to
finalisation of the contract with the appropriate authorities. This is the third
selection of Hawk this year (India, UK and Bahrain). The proposal for 66
aircraft will cover not only the aircraft but also support.

The first batch of 24 aircraft will be built in the UK and the remaining 42
aircraft manufactured in India through a partnership with India's Hindustan
Aeronautics Limited.

Commenting on the news BAE SYSTEMS Chief Executive Mike Turner said, 'I am
delighted that the Indian Government have chosen the world's best selling
advanced jet trainer - the Hawk - for the Indian Air Force. This proposal is not
only great news for BAE SYSTEMS but also for the manufacturing capability and
aerospace industries of the UK and is a reflection of the support given by the
UK Government in this bid. The Company is looking forward to continue working
with Hindustan Aeronautics Limited, a long term partner on a variety of
programmes'.

The aircraft will be manufactured at the company's Brough site in East
Yorkshire, with flight testing taking place at Warton in Lancashire.

The Indian Air Force are to receive an advanced version of the Hawk 100 series
featuring a glass cockpit with Hands-On-Throttle-And-Stick (HOTAS) controls,
head down Multi-Function Displays (MFD) and a Head Up Display (HUD).

Issued by

BAE SYSTEMS plc

London


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