RNS Number:1546Q
Ultra Electronics Holdings PLC
25 September 2003

25 September 2003

                         Ultra Electronics Holdings plc
                            ("Ultra" or "the Group")

 Ultra Acquires Ocean Systems Product Line from BAE SYSTEMS for US$10m (#6.15m)

Ultra announces that it has agreed to acquire the assets of BAE SYSTEMS Ocean
Systems for a cash consideration of US$10.0m (#6.15m).  Ocean Systems is part of
BAE SYSTEMS North America, headquartered in Rockville, Maryland.  The
acquisition is subject to approval by the US Regulatory Authorities and is
expected to close within 45 days.

Ocean Systems is a business employing approximately 80 people in Braintree,
Massachusetts, USA, with a test facility at nearby Quincy, Massachusetts.  The
company is a world leading provider of special purpose acoustic and radio
frequency devices and systems for submarines, surface ships and acoustic test
ranges worldwide.

Ocean Systems has strong synergies with Ultra's existing sonar, torpedo defence
and anti-submarine warfare activities and has a highly complementary market
position.  The company will operate as a business within Ultra's Tactical &
Sonar Systems division.

The acquisition of Ocean Systems will be financed using Ultra's existing
facilities.  In 2002, Ocean Systems had sales of US$14.0m (#8.62m), and the
order book at the end of June was $16.5m (#10.15m).

Dr Julian Blogh, Chief Executive, Ultra Electronics, commented: "I am very
pleased that we have agreed the acquisition of Ocean Systems, a company that
complements our existing naval ship defence system capability and that has
excellent relationships with key customers in the US and worldwide."


                                    - Ends -


Enquiries:

Ultra Electronics Holdings plc                   020 8813 4321
David Jeffcoat, Finance Director     www.ultra-electronics.com
                                     information@ultra-scs.com

Weber Shandwick Square Mile                      020 7067 0700
Susanne Walker or Christian San-Jose


Notes to Editors:

Ultra Electronics is a group of specialist businesses designing, manufacturing
and supporting electronic and electromechanical systems, sub-systems and
products for aircraft, ships, submarines, armoured vehicles, airports and
transport systems worldwide.  The Group, which employs 2,600 people in the UK
and North America, focuses on high integrity sensing, control, communication and
display systems with an emphasis on integrated Information Technology solutions.

The Group concentrates on obtaining a technological edge in niche markets, with
many of its products and technologies being market leaders in their field.
Ultra has an increasing role of supporting prime contractors by undertaking
specialist system and sub-system integration using the combined expertise of the
Group businesses.

Ultra is organised into three divisions as follows:

Tactical & Sonar Systems including secure tactical line-of-sight radio systems,
multiplexers and switches; tactical datalinks; cryptographic equipment; active,
passive and multi-static sonobuoys; sonobuoy receivers and processors;
distributed surveillance sensor arrays; ship's sonar systems and ship's torpedo
defence systems

Aircraft & Vehicle Systems including miniature airborne compressors; high
integrity software and systems; aircraft system electronics; aircraft noise and
vibration control; propeller de-icing, balancing and control systems; armoured
vehicle electronic information and control systems, human/computer interface
equipment and shared working environment solutions.

Information & Power Systems including command and control systems equipment;
weapons interfacing electronics; radar tracking; electro optical tracking;
surveillance systems; naval data processing and distribution; airport and
airline information management systems; ID card systems; naval power conversion;
signature management of naval vessels; transit system power conversion and
control.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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