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19 November 2002

BAE SYSTEMS RECEIVES MANUFACTURING EXCELLENCE AWARD

BAE Systems has received the Tennessee Governor's Manufacturing Excellence Award for 2002. The company was recognised for excellence in operations, production, and quality programmes at the Holston Army Ammunition Plant (HSAAP) in Kingsport, Tennessee.

More than 4,500 manufacturers state-wide were eligible to participate in the programme, of which 100 applied. A team of specialists evaluated entries based on each company's communications efforts to improve performance, employee relations, and customer satisfaction. More than 50 nominees were selected, and seven finalists were recognised.

"BAE Systems Ordnance Systems is building a reputation within the energetics community and even more broadly in the Department of Defence as being a company that intends to satisfy its customers by taking proactive steps to remain competitive. We are extremely proud to select BAE Systems Ordnance Systems to receive the 2002 Governor's Manufacturing Excellence Award," said Tony Grande, Commissioner of the Department of Economic and Community Development.

BAE Systems Ordnance Systems manages all HSAAP site activities involved in the production, handling, and supply of high explosives to meet the requirements of the U.S. Department of Defence.

"We're honoured to receive this award from the Governor and to be recognised by our state for manufacturing excellence," said Rick Beaulieu, president, BAE Systems Ordnance Systems. "Our employees are extremely proud of the work they provide to our armed forces as well as our improved work processes and cross-training initiatives."

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 is a high-technology U.S. company employing more than 22,000 Americans who live and work in 29 states and Washington, D.C. The company is dedicated to solving its customers needs with both highly innovative and leading-edge solutions across the defence electronics, systems, information technology and services arenas.

BAE Systems Ordnance Systems operates the Holston Army Ammunition Plant in Kingsport, Tennessee, and has some 200 people providing total management of all site activities involved in the production, handling, and supply of high explosives to meet the requirements of the U.S. Department of Defence.

For further information contact:
Paula Sandin, BAE Systems Applied Technologies
Tel: +1 301 738 4653  Fax: +1 301 738 4643
paula.sandin@baesystems.com www.na.baesystems.com

Issued by:
BAE Systems, Farnborough, Hampshire GU14 6YU, UK
Tel: +44 (0) 1252 384605  Fax: +44 (0) 1252 383947
www.baesystems.com

Ref: 241/2002