New GSA Schedule Contract Improves Government Agency Access to AAR Supply Chain Services

WOOD DALE, ILLINOIS, September 12, 2006 - AAR today announced that its AAR's Defense Systems & Logistics division was awarded a Federal Government General Services Administration (GSA) schedule contract as part of the GSA's Logistics Worldwide (LOGWORLD) multiple award schedule.

The GSA Schedules Program is designed to mirror commercial buying practices, providing defense customers with commercial supplies and services at volume discount pricing on a direct delivery basis. Through the schedules program, commercial service providers offer the benefits of shorter lead-times, lower administrative costs, and reduced inventories.

"We're committed to finding new and innovative ways to make it easier for our customers to do business with us," said David Perri, Vice-President and General Manager of AAR Defense Systems & Logistics. "We anticipate the simplified access to our services will enable us to better serve our defense customers while the visibility we gain by participating in the program generates new potential business opportunities."

Through its Defense Systems and Logistics operating unit, AAR supports defense programs for the U.S. and its allies with an extensive range of logistics services including supply and value chain management, parts acquisition and distribution, and operations and maintenance logistics management.

AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing.

More information can be found at www.aarcorp.com.