Disposal

BAE SYSTEMS PLC
05 March 2008




               BAE SYSTEMS AGREES TO SELL FLIGHT SYSTEMS BUSINESS

                                                                    5 March 2008


BAE Systems today signed a definitive agreement to sell its Flight Systems
business, based in Mojave, California, to Calspan Corporation.

The cash purchase price is $62.5 million plus additional consideration to be
paid pursuant to an earn-out mechanism by reference to the revenues of the
business over the next 5 year period. The transaction is subject to the receipt
of regulatory approvals and to receipt of financing by Calspan.

Flight Systems, with approximately 170 employees, performs aircraft
modification, aircraft operations, flight tests, and aerial full-scale targets
production for military and commercial customers.  It also has operations in
Florida and Germany.



Issued by:
BAE Systems
London






                      This information is provided by RNS
            The company news service from the London Stock Exchange