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PRESS RELEASE
Issued by: BAE Systems plc

BAE announces potential job losses and a site closure
Tuesday, 15 September 2009

Following a detailed review of its current and future business levels, BAE Systems has announced it has started consultation regarding the potential closure of one of its UK sites and job cuts at another three, with the loss of 1116 jobs.

Under this programme:

-- The Woodford site in Cheshire will close at the end of 2012, on completion of the Nimrod MRA4 production contract and with the loss of 630 jobs

-- 205 jobs will be lost at Samlesbury in Lancashire

-- 170 jobs will be lost at Warton in Lancashire

-- 111 jobs will be lost at Farnborough in Hampshire

It has been clear since 2003 that the Woodford site had little future beyond the end of Nimrod MRA4 production, and the workforce has been kept informed since that time. Despite strenuous efforts to achieve further Nimrod production work there has been none forthcoming. It is intended that there will be a phased run-down of the site in line with the production programme.

At Samlesbury the potential job losses are in the manufacturing function and are associated with the end of Airbus work currently undertaken by BAE Systems for Spirit AeroSystems.

At Warton the potential job losses are in the Manufacturing and Operations areas as work on the Nimrod, Tornado and Hawk programmes decreases.

At Farnborough the potential job losses are in the Harrier business. The job losses are as a result of a downturn in Harrier upgrade work over the next few years.

Kevin Taylor, Managing Director of Military Air Solutions commented: "Whilst we regret having to make this announcement we have to ensure we are the right size and shape to remain competitive and meet our customer's requirements in the future. We will work with our employees and their representatives to explore ways of mitigating these potential job losses and we will do everything necessary to deal with the potential job losses and closure of Woodford in a professional way and support our people throughout this process."

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