Welcomes announcement

BAE SYSTEMS PLC
17 September 2007



          BAE Systems - Agreement between the Kingdom of Saudi Arabia
                             and the UK Government.

                                                               17 September 2007



Following the Understanding Document signed in 2005, BAE Systems notes the
announcement today by the UK Ministry of Defence of the signing of an agreement
between the Kingdom of Saudi Arabia and the UK Government for the supply of 72
Typhoon aircraft to Saudi Arabia as part of the new defence cooperation
programme known as 'Project Salam'.

Negotiations relating to the principal terms of the agreement have been
successfully concluded and the signed agreement is expected to become effective
in due course.

BAE Systems welcomes this important milestone in its strategy to continue to
develop Saudi Arabia as a key home market with substantial employment and
investment in future in-Kingdom industrial capability.

Issued by:
BAE Systems plc
London


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