Statement re. Press Comment

BAE SYSTEMS PLC
30 April 2006



                        BAE Systems plc ('BAE Systems')



        Statement regarding Babcock International Group plc ('Babcock')



                                                                   30 April 2006



BAE Systems has noted recent press speculation that it may terminate its
interest in a joint acquisition of Babcock with VT Group plc ('VT').


BAE Systems confirms that no decision has been made and it continues to explore
the possibility of an offer for Babcock with VT as one potential route to
achieve a restructuring of the UK maritime sector.


The Panel on Takeovers and Mergers has ruled that, if any offer for Babcock is
to be made, it must be announced on or before 12.00 noon on 18 May 2006.


No approach has been made to the Board of Babcock to date and BAE Systems wishes
to emphasise that there is no certainty any offer will be made.



Issued by
BAE Systems plc
London




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