UK Defence Procurement

BAE Systems PLC
16 May 2000


BAE SYSTEMS welcomes UK Government defence procurement announcements

BAE SYSTEMS' Chief Executive, John Weston, today welcomed the UK Government's
selection of the Meteor air-to-air missile system and announcements on future
transport aircraft.

Mr Weston said:  'The selection of Meteor is a powerful boost to the defence
industry in Europe. Eurofighter Typhoon combat aircraft armed with the
advanced Meteor missile will equip the Royal Air Force with an unbeatable air
defence capability'.

Meteor, a ram-jet powered beyond visual range missile, will be developed and
produced by the Matra BAe Dynamics (MBD) guided weapons joint venture.  BAE
SYSTEMS is currently a 50% participant in MBD.  

The UK's lead in selecting Meteor clears the way for selection of the missile
also by other Countries participating in the Eurofighter Typhoon programme.

Mr Weston also welcomed the UK government announcements regarding military
transport aircraft.  Airbus Military Company (AMC), a subsidiary of Airbus
Industrie, is offering the A400M in the UK competition for the RAF's next
generation strategic and tactical airlifter, the Future Transport Aircraft
(FTA.)

In addition BAE SYSTEMS will benefit from the selection of the Boeing C-17
Globemaster to meet the UK's Short Term Strategic Airlifter requirement.  BAE
SYSTEMS' North American operation's participation in the C-17 programme
includes aerostructures, avionics and airborne systems.

BAE SYSTEMS PLC
Farnborough
Hampshire UK