BAA SELLS McARTHURGLEN INTERESTS                        

BAA plc announced today that contracts have been exchanged for the sale of the
substantial part of its remaining interests in the McArthurGlen designer outlet
centres to the Mayfair Limited Partnership. The transaction substantially
concludes BAA's strategy of exiting from non-core airports business.

The sale is in respect of all BAA's stakes comprising, 100% at York, 75% at
Mansfield, 50% at Livingston and 25% at Ashford. This sale will generate
proceeds of �165 million to BAA, which is in line with the company's financial
expectations.

Assets retained by BAA for the time being include an 11.2% minority stake in
the centre at Swindon, and two sites held for development adjacent to this
centre.

               For more information on BAA plc see www.baa.com.                

Notes:

The BAA McArthurGlen joint venture has developed seven centres in the United
Kingdom and five across Europe in France, Austria, Italy and the Netherlands,
over the last 8 years.

The details of the outlet centres are:

York : 350,000 sq ft outlet centre with over 110 stores

Livingston: 300,000 sq ft outlet centre with over 100 stores, a cinema,
restaurants and bars

Mansfield: 160,000 sq ft outlet centre with over 70 stores

Ashford: 206,000 sq ft outlet centre with 70 stores

The Mayfair Limited Partnership comprises clients of Morley Fund Management in
joint venture with McArthurGlen Europe.



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