Sale of Shrs in BAE SysCanada

BAE Systems PLC
2 February 2001


BAE SYSTEMS AGREES SALE OF SHARES IN BAE SYSTEMS CANADA

BAE SYSTEMS announces its agreement to sell its approximately 54% majority
shareholding in BAE SYSTEMS Canada to ONCAP, an investment fund located in
Toronto, Canada.  Under the terms of the agreement an affiliate of ONCAP will
acquire all of the outstanding shares of BAE SYSTEMS Canada at a price
equivalent to $CDN25.25 per share in cash for an aggregate amount of
approximately $CDN594million (approx £269million).

The transaction is subject to both Canadian and U.S. regulatory approvals and
shareholder approval at a special meeting of the shareholders in BAE SYSTEMS
Canada, expected to be held in April 2001.

Mark Ronald, president and CEO of BAE SYSTEMS North America, said, 'BAE
SYSTEMS Canada is an excellent business, with growth potential.  Its core
capabilities, however, diverge from our core concentration and focus.  We are
very pleased to have a Canadian group of the quality of ONCAP provide this
business with the future it deserves.'


Issued by:

BAE SYSTEMS plc
London
United Kingdom