Sector Restatement

BAE SYSTEMS PLC
18 April 2007


BAE Systems plc - restatement of reporting sectors


19 April 2007



BAE Systems is to re-align its externally reported sectors following the changes
made to the Group's organisational structure that became effective from 1
January 2007.  The Group has previously reported its trading performance through
five business groups: Electronics, Intelligence and Support; Land & Armaments;
Programmes; Customer Solutions & Support; and Integrated Systems & Partnerships.
In addition HQ & Other Businesses are reported separately.  The re-alignment
of external reporting to the new organisation structure will now result in the
Group reporting through four operating business groups together with the HQ &
Other Businesses grouping.

The Electronics, Intelligence & Support and Land & Armaments business groups
remain unchanged.

With the increased focus by the UK MoD of procuring capability throughout the
lifecycle of a system the Group is integrating its UK air and naval platform
programme activities with their respective UK support activities previously
reported in the Customer Solutions & Support business group.  The resulting
organisation will now be reported through a new Programmes & Support business
group. The Integrated System Technologies (Insyte) and Underwater Systems
businesses, previously reported within Integrated Systems & Partnerships, will
also be reported within this new business group.

Reflecting the Group's position in other home markets outside the US and UK the
Group's business operations in Australia and the Kingdom of Saudi Arabia will be
reported through a new International Businesses business group, together with
the Group's interests in Saab and MBDA, previously reported within Integrated
Systems & Partnerships.

The following tables detail the financial restatements, for sales and EBITA, for
the 2006 first half and the 2006 full year.



Table 1
        Sectors as previously reported
                                                     2006 Full Year                     2006 Half Year
                                                    Sales       EBITA                   Sales      EBITA
                                                      £m          £m                      £m         £m
Electronics Intelligence & Support                   4,007        429                   2,090        260
Land & Armaments                                     2,115        168                     892         76
Programmes                                           2,927        167                   1,186         57
Customer Solutions & Support                         3,180        477                   1,462        215
Integrated Systems & Partnerships                    1,748        113                     798         57
HQ and Other Businesses                                295      (147)                     178       (65)
Intra group                                          (507)                              (230)

Total - Continuing Operations                       13,765      1,207                   6,376        600








Table 2
          Restatement to new sectors

                                                     2006 Full Year                     2006 Half Year
                                                    Sales       EBITA                   Sales      EBITA
                                                      £m          £m                      £m         £m
Electronics, Intelligence & Support                  4,007        429                   2,090        260
Land & Armaments                                     2,115        168                     892         76
Programmes & Support                                 4,615        342                   2,018        153
International Businesses                             3,428        415                   1,545        176
HQ & Other Businesses                                  295      (147)                     178       (65)
Intra group                                          (695)                              (347)

Total - Continuing Operations                       13,765      1,207                   6,376        600







Issued by:

BAE Systems plc

London


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