BAE SYSTEMS to Serve Defense Researchers With New Virginia Facility: New Office Highlights BAE SYSTEMS' Growing Presence in Northern Virginia and the Greater Washington, DC Area.

Business Editors

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 15, 2001

BAE SYSTEMS today opened an advanced technology office in Arlington, Va., which will enhance its ties with key defense laboratories.

Part of the Information & Electronic Warfare Systems unit, the new Washington Technical Office at Court House Plaza II, 2300 Clarendon Boulevard will support up to 50 technical, program management and business development personnel. Dr. Michael Grove has been selected to head the new operation.

Aaron Penkacik, Chief Technical Officer for Information and Electronic Warfare Systems in Nashua, N.H., said, "This office is focused on supporting applied research of technology concepts and advanced technology development - typically prototype development to help fuel the 'front-end' of our business," said Penkacik.

These areas - known as 6.2 and 6.3A in the research and development process - precede follow-on engineering and manufacturing development (EMD) and production.

Penkacik, who is also the unit's vice president for Advanced Systems and Technology (AS&T), said the new Washington Technical Office will serve as the forward deployed branch of AS&T. "It will also promote closer interactions between technologists and defense agencies," Penkacik said, "and provide a convenient location for customer meetings."

The office's opening on September 18, helps achieve a major unit goal to strengthen key customer relationships and extend customer focus.

The location in Arlington, Va., provides ready access for more than 20 major agencies and laboratories, including the Defense Advanced Research Projects Agency (DARPA), the National Security Agency (NSA), and the Naval Research Laboratory (NRL). Additionally, the office will provide a business development presence for the unit's Research & Development activities.

The Washington Technical Office is the third new facility opened by BAE SYSTEMS in the Northern, Va. - Washington area this year, complementing the company's existing Government Relations and Marketing Offices in Crystal City. In May, BAE SYSTEMS established an Export/Import Licensing Office in Crystal City, and a Program Office in Stafford, Va.

The Export/Import Licensing Office is responsible for clarifying federal export-import policy and regulations, as well as providing guidance and managing corporate-wide export licensing requests submitted to the Departments of State and Commerce.

The 20,000 square foot Stafford facility supports BAE SYSTEMS' work with the Marine Corps Systems Command, Ground Weapons Directorate at the Quantico Marine Corps Base.

BAE SYSTEMS is also opening a new 100,000+ square foot office complex in Reston, Va. which will house more than 200 employees, principally from BAE SYSTEMS' newly formed Integrated Systems business unit. The facility, which is scheduled for occupancy in the fall of 2002, will eventually house more than 350 employees.

BAE SYSTEMS North America is a high-technology U.S. company employing more than 22,000 Americans who live and work in 30 States and Washington, DC -- dedicated to solving our customers needs with both highly innovative and leading edge solutions across the defense electronics, systems, information technology and services arenas.

BAE SYSTEMS has a strong U.S. heritage, based on the shared traditions of excellence and highly successful performance of more than 20 premier aerospace, defense and service companies.

Successfully integrated into one of the U.S. military's top suppliers - BAE SYSTEMS North America has established an impressive record of growing its businesses, investing in jobs and new technologies, supporting communities, and meeting commitments to customers, partners and shareholders alike.

BAE SYSTEMS' North American corporate offices are located in Rockville, Md. and Arlington, Va.

Note to editors

BAE SYSTEMS is a truly global systems, defense and aerospace company whose activities in North America account for more than 30% of the company's world-wide sales; 25% of the total workforce; and more than 30% of its shareholders.

BAE SYSTEMS employs some 100,000 people and has annual sales of around $18 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 and manufactures civil and military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defense products.