Sector Restatement

BAE SYSTEMS PLC 18 April 2007 BAE Systems plc - restatement of reporting sectors 19 April 2007 BAE Systems is to re-align its externally reported sectors following the changes made to the Group's organisational structure that became effective from 1 January 2007. The Group has previously reported its trading performance through five business groups: Electronics, Intelligence and Support; Land & Armaments; Programmes; Customer Solutions & Support; and Integrated Systems & Partnerships. In addition HQ & Other Businesses are reported separately. The re-alignment of external reporting to the new organisation structure will now result in the Group reporting through four operating business groups together with the HQ & Other Businesses grouping. The Electronics, Intelligence & Support and Land & Armaments business groups remain unchanged. With the increased focus by the UK MoD of procuring capability throughout the lifecycle of a system the Group is integrating its UK air and naval platform programme activities with their respective UK support activities previously reported in the Customer Solutions & Support business group. The resulting organisation will now be reported through a new Programmes & Support business group. The Integrated System Technologies (Insyte) and Underwater Systems businesses, previously reported within Integrated Systems & Partnerships, will also be reported within this new business group. Reflecting the Group's position in other home markets outside the US and UK the Group's business operations in Australia and the Kingdom of Saudi Arabia will be reported through a new International Businesses business group, together with the Group's interests in Saab and MBDA, previously reported within Integrated Systems & Partnerships. The following tables detail the financial restatements, for sales and EBITA, for the 2006 first half and the 2006 full year. Table 1 Sectors as previously reported 2006 Full Year 2006 Half Year Sales EBITA Sales EBITA £m £m £m £m Electronics Intelligence & Support 4,007 429 2,090 260 Land & Armaments 2,115 168 892 76 Programmes 2,927 167 1,186 57 Customer Solutions & Support 3,180 477 1,462 215 Integrated Systems & Partnerships 1,748 113 798 57 HQ and Other Businesses 295 (147) 178 (65) Intra group (507) (230) Total - Continuing Operations 13,765 1,207 6,376 600 Table 2 Restatement to new sectors 2006 Full Year 2006 Half Year Sales EBITA Sales EBITA £m £m £m £m Electronics, Intelligence & Support 4,007 429 2,090 260 Land & Armaments 2,115 168 892 76 Programmes & Support 4,615 342 2,018 153 International Businesses 3,428 415 1,545 176 HQ & Other Businesses 295 (147) 178 (65) Intra group (695) (347) Total - Continuing Operations 13,765 1,207 6,376 600 Issued by: BAE Systems plc London This information is provided by RNS The company news service from the London Stock Exchange

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