RNS Number:0121B
Cazenove
05 April 2006


                                FORM 38.5


                 DEALINGS BY CONNECTED EXEMPT PRINCIPAL TRADERS

             (Rule 38.5 of the City Code on Takeovers and Mergers)


1.         KEY INFORMATION


Name of exempt principal trader                Cazenove

Company dealt in                               BAE Systems

Class of relevant security to which the        Ordinary 0.25p
dealings being disclosed relate (Note 1)

Date of dealing                                4th April 2006



2.         DEALINGS (Note 2)



(a)        Purchases and sales


Total number of securities purchased   Highest price paid (Note 3)           Lowest price paid (Note 3)


1,024,734                              #4.405p                               #4.2575p






Total number of securities sold        Highest price received (Note 3)       Lowest price paid received (Note 3)


1,024,734                              #4.405p                               #4.27p





(b)        Derivatives transactions (other than options)


Product name,         Long/short (Note 4)       Number of securities (Note 5)        Price per unit (Note 3)
e.g. CFD








(c)        Options transactions in respect of existing securities

(i)         Writing, selling, purchasing or varying


Product name,         Writing, selling, Number of securities  Exercise   Type, e.g.      Expiry     Option money
                        purchasing,     to which the option              American,
e.g. call option      varying etc.      relates (Note 5)      price      European etc.   date       paid/received per
                                                                                                    unit (Note 3)





(ii)        Exercising


Product name, e.g. call option         Number of securities                  Exercise price per unit (Note 3)



3.         OTHER INFORMATION



Agreements, arrangements or understandings relating to options or derivatives




Full details of any agreement, arrangement or understanding between the person disclosing and any other person relating
to the voting rights of any relevant securities under any option referred to on this form or relating to the voting
rights or future acquisition or disposal of any relevant securities to which any derivative referred to on this form is
referenced.  If none, this should be stated.



Date of disclosure                                                5th April 2006

Contact name                                                      Barry page

Telephone number                                                  0207 155 5907

Name of offeree/offeror with which connected                      Babcock Intl Plc

Nature of connection (Note 6)                                     Cazenove are Broker to Babcock Intl plc



Notes



The Notes on Form 38.5 can be viewed on the Takeover Panel's website at
www.thetakeoverpanel.org.uk




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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