Transaction in Own Shares

BAE SYSTEMS PLC
10 January 2007


BAE Systems plc: Transaction in own shares

BAE Systems plc announces that it has purchased the following number of its
ordinary shares of 2.5p each on the London Stock Exchange via Hoare Govett
Limited's affiliate, ABN AMRO Bank N.V., London Branch.

Ordinary shares:

Date of purchase: 10 January 2007

Number of ordinary shares purchased: 400,000

Highest price paid per share: 416.75p

Lowest price paid per share: 412.75p

Volume weighted average price paid per share: 414.19p

BAE Systems plc intends to hold the purchased shares in treasury.

Following the purchase of these shares, BAE Systems plc holds 31,475,000 of its
ordinary shares in treasury and has 3,214,975,595 ordinary shares in issue
(excluding treasury shares). This figure (3,214,975,595) represents the total
voting rights in the Company and may be used by shareholders as the denominator
for the calculations by which they can determine if they are required to notify
their interest in, or a change to their interest in the Company under the
Financial Services Authority's Disclosure and Transparency Rules.



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