Stmt re OFT Merger Approval

BRITISH AEROSPACE PLC
9 September 1999


OFT approves merger of British Aerospace and Marconi Electronic Systems

British Aerospace welcomes the decision by the UKs Secretary of State for
Trade and Industry not to refer to the Competition Commission its proposed
merger with GECs Marconi Electronic Systems:  he has requested the Director
General of Fair Trading to discuss with British Aerospace the terms of
appropriate undertakings relating to certain areas of concern that the enquiry
into the proposed transaction has raised. 

Both companies are confident the undertakings will be agreed such that the
transaction can be completed in this calendar year.

Subject to regulatory approval from the US State Department the approval of
BAe and GEC shareholders will be sought.  Conditional on shareholders approval
it is anticipated that the transaction will be completed later this year.

The merger represents a very significant step in the companys strategy to
ensure a pivotal role in the global aerospace and defence market.  The new
company will be the worlds second largest defence company and the most
globally based with a significant presence in the home markets of nine
countries including a large presence in the USA.

Issued by:       

Corporate Communications
British Aerospace plc
Farnborough Aerospace Centre
Farnborough
Hampshire GU14 6YU