BAE SYSTEMS REGIONAL AIRCRAFT COMPLETES MARKETING MANDATE WITH SALE OF NINE BOEING 757s

The Trading and Services business of BAE SYSTEMS Regional Aircraft has successfully completed another major marketing mandate with the sale arrangement of nine Boeing 757-2B7 aircraft to Q Aircraft LP of Forth Worth, Texas, a new entrant to the aircraft lessor market.

Trading and Services won the exclusive mandate from Wilmington Trust Company, acting as Collateral Agent for the aircraft owners in the summer of 2003. Under the agreement, Trading and Services had to find new a new buyer for the aircraft, all of which remain on long-term lease to US Airways.

Commenting on the transaction, Jon Skirrow, Vice President Trading and Services, said: " The successful conclusion of this Boeing 757 transaction confirms us in the forefront of world aircraft remarketing agents and brings to a close a fine year for the operation in 2003 - a year which has also seen us successfully remarket a number of Airbus A319s and Boeing 737s.

"The marketing reach and processes we possess enabled us to contact over 100 potential purchasers from the leasing and wider financial community for the Boeing 757s. As a result of the strong interest we generated in these aircraft, we have managed to derive maximum value on behalf of the aircraft owners in what is a very testing market.�

The Trading and Services business now has approximately 60 aircraft under lease management on behalf of aircraft owners. Aircraft types managed include Airbus A300-600, A320 and A319s as well as Boeing 737-300s.

The nine Boeing 757-2B7 aircraft are all Rolls Royce-powered and bear manufacturer's serial numbers 27246,27303,27805, 27806, 27807, 27808, 27809, 27810 and 27811.