Acquisition

BAE Systems PLC
27 November 2000


BAE SYSTEMS completes acquisition of Aerospace Electronics Systems 


BAE SYSTEMS plc today completed its $1.67bn acquisition of the Aerospace
Electronics Systems (AES) business from Lockheed Martin. 

The AES business will merge with BAE SYSTEMS existing aerospace sector
businesses and will operate as BAE SYSTEMS Information and Electronic Systems
Integration, a wholly owned subsidiary of BAE SYSTEMS North America. 

AES is an industry leader in the development and production of aircraft
self-protection systems and tactical surveillance and intelligence systems for
all branches of the armed forces. The business designs, manufactures and
supports information and electronic warfare systems and reconnaissance and
navigation systems for a broad range of airborne, shipboard and ground-based
applications. 

AES has strong market positions in the high technology field of electronic
warfare with good positions on many key US defence programmes.  AES is a
significant contributor to both new airborne platforms and upgrades of
existing, in-service, platforms.  AES has substantial Avionics involvement in
the next generation of US fighter aircraft programmes currently under
development, including the F-22, F/A-18E/F and the Joint Strike Fighter (JSF).
 In addition to growth from programmes moving from development to production,
upgrades of legacy systems are expected to become an area with substantial
growth over the coming years.

In 1999 AES produced profit before interest and tax of $118m on sales of
$1,178m.  The business employs nearly 5,000 employees at facilities in New
Hampshire, Massachusetts, New York, California, and Virginia.

The combined businesses now constituting BAE SYSTEMS in North America had pro
forma sales in 1999 of $ 3.7bn and profit before interest and tax of $400m. 
With this acquisition BAE SYSTEMS now employs approximately 25,000 people in
North America across 28 states in the USA and in Canada.



Issued by:
BAE SYSTEMS plc    
Warwick House
Farnborough, Hants GU14 6YU