Acquisition

BAE SYSTEMS PLC
07 September 2006

7 September 2006


BAE SYSTEMS TO PURCHASE NATIONAL SENSOR SYSTEMS, LLC

BAE Systems Inc. today reached a definitive agreement with National Sensor
Systems (NSS) to purchase all of the shares of the company for $8.7 million in
cash.

NSS, a privately held company based in Acton, Massachusetts, specialises in the
development of electro-optical sensor systems for aerospace and defense
applications. NSS also provides gimbal and stabilisation systems to the
Department of Defense and other government agencies.

NSS employs 20 engineers and scientists.

The parties expect to close the transaction upon receipt of regulatory
approvals.


Issued by
BAE Systems
London



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