Acquisition

BAE SYSTEMS PLC
31 July 2007

          BAE Systems plc completes acquisition of Armor Holdings Inc.



                                                                  31 August 2007



BAE Systems plc (BAE Systems) today completed its acquisition of Armor Holdings
Inc. (Armor Holdings), after receiving all required regulatory approvals and the
approval of the transaction by the shareholders of Armor Holdings.  BAE Systems
announced it had entered into a definitive agreement to acquire Armor Holdings
on 7 May 2007 in a transaction valued at $4,532 million (£2,275 million).

Armor Holdings is a major manufacturer of tactical wheeled vehicles and a
leading provider of vehicle and individual armour systems and survivability
technologies for the military and adjacent law enforcement and commercial
security markets.  Armor Holdings reported sales of $2,361 million in 2006 and
employs over 8,000 people in 63 locations throughout the US and international
markets, including the UK.

The acquisition is a significant step in the implementation of BAE Systems'
strategy to develop as the premier global defence and aerospace company.  The
acquisition expands the company's business in the United States and strengthens
BAE Systems' position as one of the world's leading land systems businesses.
The integration of Armor Holdings into the BAE Systems Land and Armaments
business is expected to increase BAE Systems' US sales by more than $3 billion
with the addition of complementary revenue streams from several priority
tactical vehicle programmes.



Issued by

BAE Systems plc

London


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