Transaction in Own Shares

BAE Systems plc (the "Company"): Transaction in own shares

BAE Systems plc announces that it has purchased the following number of its ordinary shares of 2.5p each via UBS Investment Bank. BAE Systems plc intends to hold the purchased shares in treasury.

Date of purchase: 28 June 2010

Number of ordinary shares purchased: 1,400,000

Highest price paid per share: 320.5p

Lowest price paid per share: 316.7p

Volume weighted average price paid per share: 318.6303p

Following the purchase of these shares, BAE Systems plc holds 164,651,525 of its ordinary shares in treasury and has 3,422,341,309 ordinary shares in issue (excluding treasury shares).