BAE SYSTEMS Announces Retirement of Tom Rabaut, President Land & Armaments Operating Group; Appointment of Linda Hudson as Successor.

WASHINGTON -- Tom Rabaut, president of BAE Systems Land & Armaments, has announced his retirement at the end of the year, following a career that spanned more than 30 years in the military and the defense industry.

In making the announcement, Mark Ronald, president and CEO of BAE Systems Inc. said, "We have been honored to have Tom's leadership, insight and expertise in developing and executing our global land systems strategy. His contributions to the company, the industry and to our nation have been invaluable and I know his commitment to the men and women in uniform is foremost in his management philosophy."

Rabaut joined BAE Systems in June 2005 after the company's acquisition of United Defense. As president of the Land & Armaments operating group, he created a global leader in the design, development and production of combat vehicles, artillery, naval guns, missile launchers and precision munitions with nearly 11,000 employees at 13 primary locations in the U.S. and locations in the UK, Sweden and South Africa. Prior to the acquisition, Rabaut served as CEO and president of United Defense and led that company through two significant acquisitions, doubled the size of the company and completed an initial public offering.

Rabaut is a graduate of the U.S. Military Academy and holds a master's degree in Business Administration from the Harvard Business School. During his five years as an Army officer, he served in company- and battalion-level positions with the 1st and 4th Armored Divisions and the 66th Military Intelligence Group.

"We wish Tom all the best in his future plans," Ronald added.

Rabaut will be succeeded by Linda Hudson, who will join the company in early December and will take leadership of Land & Armaments on Jan. 1, 2007. Hudson has served in a number of senior management positions in the defense industry to include president of the Armament and Technical Products Company and vice president for Business Development at General Dynamics, as well as with Lockheed Martin, Martin Marietta, Ford Aerospace and Communications Corp., and Harris Corp. She served as a member of the National Defense Industrial Associations' Industrial Committee for Ammunition Producers and has been retained by the U.S. Government as an expert on industrial base issues and defense reutilization. NDIA also recognized Hudson with their prestigious "Firepower Award" for her contributions to the defense of our country. Recently, she received the National Infantry Association's "Military Order of St. Maurice" in recognition of outstanding support of the U.S. Army Infantry. Hudson serves on the boards of the Charlotte (N.C.) Chamber of Commerce, the United Way of Central Carolinas, the North Carolina Conference for Women, Queens University of Charlotte McColl Graduate School of Business, and Norwich University of Northfield, Vt.

"I'm extremely pleased to welcome Linda Hudson to BAE Systems. She brings a wealth of experience managing a broad product portfolio and has a successful track record of both organic and acquisition-based growth," Ronald added.

About BAE Systems

BAE Systems is the premier trans-Atlantic defense and aerospace company, delivering a full range of products and services for air, land, and naval forces, as well as advanced electronics, information technology solutions, and customer support services. BAE Systems, with more than 86,000 employees worldwide, had 2005 sales that exceeded $28 billion.