Transaction in Own Shares

BAE Systems plc (the "Company"): Prohibited period buyback

The Company announces that it has put in place an irrevocable, non-discretionary programme allowing the buy back of the Company's shares during the prohibited period which precedes the announcement of its half yearly financial statements for the half year ended 30 June 2010 on 29 July 2010.

Any purchases pursuant to these arrangements will be effected during the period between 1 July 2010 and the business day prior to the announcement of the preliminary results above, within certain pre-set parameters and will be in accordance with the Company's general authority to repurchase shares.

Any shares purchased will be held in treasury.