Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

BAE Systems Plc

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

X

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to thenotification obligation: iii

Invesco Limited

4. Full name of shareholder(s)  (if different from 3.):iv

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

07 December 2011

6. Date on which issuer notified:

08 December 2011

7. Threshold(s) that is/are crossed orreached: vi, vii

11%, 12%

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Direct

Direct xi

Indirect xii

Direct

Indirect

Ordinary 2.5p Shares

369,311,885

369,311,885

388,743,700

12.01%

GB0002634946

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

388,743,700

12.01%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

Bank of Ireland, Dublin - 1,320,415

Bank of New York - 322,824,743

Bank of New York Mellon - 3,633,856

Bank of New York, Singapore - 106,867

Citibank Hong Kong - 867,898

JP Morgan Chase - 753,856

Citibank, Frankfurt - 225,925

HSBC Bank Plc, London - 7,137,437

Japan Trustee Services Bank - 345,549

Mellon Bank, Pittsburgh - 436,338

Master Trust Bank JP - 31,291

Societe Generale FR - 142,625

State Street Trust & Banking Co Hong Kong - 10,747

State Street Trust & Banking Co London - 46,788,302

Trust & Custody Services JP - 21,071

Northern Trust Company, London - 975,232

Invesco Global Asset Management (NA) Inc - 17,953,910

ADR's - 9,224

Invesco PowerShares Capital Management LLC - 276,511

Van Kampen Asset Management - 2,835,813

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will ceaseto hold:

12. Date on which proxy holder will cease to holdvoting rights:

13. Additional information:

14. Contact name:

Samantha Edwards

15. Contact telephone number:

01491 416381

Note: Annex should only be submitted to the FSA not the issuer

Annex: Notification of major interests in share

A: Identity of the persons or legal entity subject to the notification obligation

Full name

(including legal form of legal entities)

Contact address

(registered office for legal entities)

Phone number & email

Other useful information

(at least legal representative for legal persons)

B: Identity of the notifier, if applicable

Full name

Invesco Limited

Contact address

Registered Address:

30 Finsbury Square

London

EC2A 1AG

Phone number & email

020 7638 0731

Other useful information

(e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information

For notes on how to complete form TR-1 please see the FSA website.