Statement re. Press Comment

BAE SYSTEMS PLC
26 April 2004


BAE Systems notes the recent press speculation regarding a possible sale of its
naval shipbuilding businesses and confirms that it is currently reviewing its
options regarding these businesses. No decisions have been taken with respect to
this review, which is currently at an early stage. All options, including the
retention or sale of some or all of these businesses, are being considered. BAE
Systems regularly reviews its strategic options in relation to all its
businesses, particularly in the context of delivering shareholder value.


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