BAE SYSTEMS COMPLETES SALE OF COMMUNICATIONS EQUIPMENT FACILITY

BAE Systems North America has completed the sale of its Advanced Systems' Gaithersburg operation to Integrated Defense Technologies, Inc.

The negotiated $146 million cash sale to Integrated Defense Technologies was originally announced Sept. 13. Closing of the sale today followed completion of regulatory reviews and approvals.

At the Gaithersburg Operation, located in Gaithersburg, Maryland, more than 300 employees design and manufacture high performance radio frequency surveillance equipment used in signals intelligence applications.

Mark Ronald, Chief Operating Officer, BAE Systems plc, and President and Chief Executive Officer, BAE Systems North America, said the sale was made because the focus and strategy of BAE Systems North America is moving from component provider -- as represented by the RF surveillance equipment lines -- to systems integration. "The Gaithersburg Operation has a proven tradition of excellence in providing high quality and high performance RF solutions for the military and civilian signals intelligence community. We're confident the business and the talented workforce will be a superb fit with Integrated Defense Technologies," he said.

The Gaithersburg Operation has provided communications equipment in the area of receivers, tuners, cellular and wireless intercept, signal processing and direction for its customers for more than 40 years.

About BAE SYSTEMS:

BAE Systems is a systems company, innovating for a safer world. BAE Systems employs nearly 100,000 people including Joint Ventures, and has annual sales of around £13 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE Systems designs, manufactures and supports military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defence products. BAE Systems is dedicated to making the intelligent connections needed to deliver innovative solutions.

BAE Systems North America employs 22,000 people in the design, development, integration, manufacture and support of a wide range of advanced aerospace products and intelligent electronic systems for government and commercial customers.

BAE Systems Advanced Systems has facilities in Mt. Vernon, New York; Braintree, Massachusetts; Lansdale, Pennsylvania; and Falls Church, Virginia; with headquarters in Greenlawn, New York. As the world's leading producer of Identification, Friend or Foe products, Advanced Systems currently produces military interrogators and transponders for airborne, shipboard, and air defense applications worldwide, and maintains a long history in the design, development and manufacturing of military communications, electronic identification, displays, antennas, and anti-submarine warfare products.

Integrated Defense Technologies is a leading developer and provider of advanced electronics and technology products to the defense and intelligence industries. For more information on Integrated Defense Technologies visit its Web site, www.Integrateddefense.com

For further information about BAE Systems, please contact:
Joan Ferguson, BAE Systems, Information and Electronic Systems Integration Sector,
Tel: +1 603 885 2816  www.na.baesystems.com

For further information about Integrated Defense Technologies Inc., please contact:
Bill Collins, Administrative Vice President, Integrated Defense Technologies Inc.
Tel: +1 256 895 2339

Ref: 230/2002