Director/PDMR Shareholding

BAE SYSTEMS PLC
25 January 2007



BAE SYSTEMS plc

NOTIFICATION OF TRANSACTIONS OF PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES
OR THEIR CONNECTED PERSONS

Notification made in accordance with Disclosure rule 3.1.4R(1)(b) of the
Disclosure Rules.

The Company has been notified by the trustee of the BAE Systems Share Incentive
Plan, Hill Samuel ESOP Trustees Limited, that the trustee has transferred 18,424
ordinary shares of 2.5 pence each in BAE Systems plc for nil consideration from
Lloyds TSB Registrars Corporate Nominee Limited AESOP1 (allocated shares) to
Lloyds TSB Registrars Corporate Nominee Limited AESOP2 (unallocated shares).
The transfer was made following the forfeiture of shares, under the Rules of the
BAE Systems Share Incentive Plan, from participants who have left the BAE
Systems group.

Each of the executive directors of the Company are deemed, along with certain
other group employees, to have an interest in the aggregate balance of 140,565
shares now held by Lloyds TSB Registrars Corporate Nominee Ltd AESOP2
(unallocated shares).

25 January 2007


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