Director/PDMR Shareholding

BAE SYSTEMS PLC
14 March 2006



NOTIFICATION OF TRANSACTIONS OF PERSONS DIRECTORS OR THEIR CONNECTED PERSONS


Notification made in accordance with Section 324 (as extended by Section 328) of
the Companies Act 1985 and Disclosure rule 3.1.4R(1)(b) of the Disclosure Rules.


The following interests of Directors in options over ordinary shares of 2.5p
each in BAE Systems plc have ceased as the options to which they relate under
the BAE Systems Executive Share Option Plan have lapsed due to the related
performance conditions not having been met.


Name of Director        Number of ordinary shares under option     Option Price
                        which have lapsed:


Chris Geoghegan                 113,636                            330 pence
Michael Lester                  284,795                            342 pence
Steve Mogford                   211,696                            342 pence
Mark Ronald                     172,577                            330 pence
George Rose                     254,386                            342 pence
Mike Turner                     271,345                            342 pence



14 March 2006






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