BAA plc: Special Share redemption

Leading airport operator BAA today announces that it has received notice from
Her Majesty's Government that it wishes to redeem its Special Share in BAA plc,
at its par value of �1.

The Government's decision follows the judgment of the European Court of
Justice, announced in May this year, under which the holding of the Special
Share was held to infringe the principle of free movement of capital.

As a consequence of the redemption of the Special Share and in order to comply
with listing rules' requirements that listed securities should be freely
transferable, the directors of BAA intend to propose a resolution to
shareholders to remove the 15% limitation on the holding of voting shares from
BAA's articles of association.

BAA's directors intend to propose this resolution at the Annual General Meeting
in 2004, but will progress this earlier if it becomes apparent that it is
appropriate to do so.



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