Result of placing

BAE SYSTEMS PLC
07 March 2005


   Not for release, publication or distribution in or into the United States,
              Canada, Australia, Japan or the Republic of Ireland.

BAE SYSTEMS PLC - RESULT OF PLACING

7 March 2005

BAE Systems plc ('BAE Systems') is pleased to announce the successful completion
of the placing (the 'Placing') announced earlier today. A total of 150 million
new ordinary shares of 2.5 pence each (the 'Placing Shares') have been placed by
Hoare Govett Limited and Dresdner Kleinwort Wasserstein Securities Limited at a
price of 240 pence per Placing Share, raising £360 million before expenses.

The Placing Shares will be issued credited as fully paid and will rank pari
passu in all respects with BAE System's existing ordinary shares, including the
right to receive all dividends and other distributions declared, made or paid
after the date of issue.

Application has been made for, and the Placing is conditional on, inter alia,
admission of the Placing Shares to listing on the Official List of the UK
Listing Authority and to being admitted to trading on the London Stock Exchange
plc's market for listed securities (together 'Admission'). It is expected that
settlement will occur, Admission will become effective and dealings in the
Placing Shares will commence on 10 March 2005.

Enquiries to:

BAE Systems
Charlotte Lambkin (Group Communications Director)       Tel: [phone]
Andy Wrathall (Investor relations)                      Tel: [phone]
Richard Coltart (Press relations)                       Tel: [phone]

Hoare Govett Limited
Peter Meinertzhagen                                     Tel: [phone]
Bob Pringle
Alex Carter

Dresdner Kleinwort Wasserstein Securities Limited
Jonathan Roe                                            Tel: [phone]
Angus Kerr

This announcement has been issued by and is the sole responsibility of BAE
Systems.

Hoare Govett Limited and Dresdner Kleinwort Wasserstein Securities Limited, each
of which is authorised and regulated by the Financial Services Authority, are
each acting exclusively for BAE Systems in connection with the Placing and
no-one else and will not be responsible to anyone other than BAE Systems for
providing the protections afforded to their respective clients, or for giving
advice in relation to the Placing or any other matter referred to in this press
announcement.

This announcement is for information purposes only and does not constitute an
offer or invitation to acquire or dispose of any securities or investment advice
in any jurisdiction. This announcement does not constitute an offer to sell or
issue or the solicitation of an offer to buy or acquire any securities in the
capital of BAE Systems in the United States, Canada, Australia, Japan or the
Republic of Ireland or any jurisdiction in which such an offer or solicitation
is unlawful and should not be relied upon in connection with any decision to
acquire the Placing Shares or any other securities in the capital of BAE
Systems.

The Placing Shares have not been and will not be registered under the US
Securities Act of 1933 as amended (the 'Securities Act') or under the securities
laws of any state of the United States and may not be offered or sold within the
United States unless they are registered with the US Securities and Exchange
Commission or an exemption from registration is available. No public offering of
the Placing Shares will be made in the United States.

END

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