BAA INVESTS �65 MILLION IN NATS                        

BAA plc, the international airport company, today announced an investment of �
65 million in NATS Group (NATS), the UK's national air traffic services
provider, alongside an identical investment in NATS by the UK Government.

This combined investment of �130 million will be used to pay down NATS'
existing debt and assist in its financial restructuring. BAA's investment is
made on terms that are consistent with its return on capital targets. BAA has
proposed for two senior BAA executives to be nominated to join the board as non
executive directors: Roger Cato, managing director of Gatwick Airport and
Vernon Murphy, chairman of BAA's Heathrow Express.

BAA chief executive designate Mike Clasper said: "We are pleased to be
participating in the financial restructuring of NATS announced this morning. We
are committed to playing our part in securing the development of the airspace
capacity that Britain urgently needs. This limited investment grants us a 4%
stake and two loan notes amounting to �60 million, and is supported by the
presence of two senior BAA figures on the NATS board, underlining BAA's
commitment to the sound development of the UK's air traffic control
infrastructure."

                  For information on BAA plc see www.baa.com                   

Note - biographies in brief:

Roger Cato was appointed chairman and managing director of Gatwick Airport and
chairman of Southampton Airport in October 2001. He was previously managing
director of Heathrow Airport and has 30 years experience with BAA encompassing
every BAA airport, terminal and airfield. He worked overseas on a number of
senior assignments.

Vernon Murphy is currently Chairman of Heathrow Express. He has held a number
of senior positions in his 37 years with BAA including chairman of BAA Scottish
Airports, managing director BAA International, managing director of BAA
regional airports and management roles in most BAA airports.



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