Transaction in Own Shares

BAE SYSTEMS PLC
01 November 2006


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: 1 November 2006

Number of ordinary shares purchased: 750,000

Highest price paid per share: 416.5p

Lowest price paid per share: 415p

Volume weighted average price paid per share: 416.150p

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

Following the purchase of these shares, BAE Systems plc holds 2,690,000 of its
ordinary shares in treasury and has 3,237,979,594 ordinary shares in issue
(excluding treasury shares).




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