Acquisition

BAE SYSTEMS PLC
16 April 2008


                       BAE Systems Acquires IST Dynamics

BAE Systems Land Systems South Africa has today agreed to acquire the business
and assets of IST Dynamics, a privately held company owned by the Ethos group of
companies.

IST Dynamics is based in Pretoria, South Africa, and specialises in the
development of fire directing systems, remotely controlled turrets, weapon
stations and related fire control sub-systems and products and fire control
sub-systems-related training systems. The business has 52 employees.

The IST Dynamics business generated sales of £4.8 million with a profit before
tax of £0.4 million in the year ended 29 February 2008 on gross assets of £
5.2m.

Completion is subject to obtaining all regulatory approvals.


Issued by : BAE Systems, London


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