J.F. Lehman & Company

26th April 2007

It was announced yesterday that BAE Systems' 50% share in Silicon Sensing Systems, the joint venture with Sumitomo Precision Products of Japan, is to be acquired by J.F. Lehman & Company, a U.S. private equity investment firm, subject to regulatory approval.  The acquisition includes BAE System's Inertial Products business operations in the U.K. and U.S.A.  The acquisition is subject to regulatory approval which is expected to complete within the next 60 days.

This change of ownership arrangement does not affect SSSL's trading position and we remain focused on our customer commitments - the situation is 'business as usual'.

Further announcements will be made in the forthcoming weeks as the business transition progresses; these will be posted in the news section of our website www.siliconsensing.com.