WOOD DALE, ILLINOIS (August 2, 2007) — AAR CORP. (NYSE: AIR) announced today that aerospace industry veteran Terry Stinson has been named group vice president responsible for the Company’s Structures and Systems segment. The appointment includes responsibility for AAR’s Cargo Systems, Composites and Mobility Systems operating units with emphasis on capitalizing on the robust build cycles in commercial and defense markets.

“Terry is a recognized aerospace industry leader, and we welcome him to AAR during an exciting time of transformation and growth,” said Timothy Romenesko President and Chief Operating Officer. “Terry’s reputation, extensive experience and strategic vision will serve AAR well as we capitalize on opportunities to grow our structures and systems business.”

Stinson most recently served as president of Commercial Operations for Thomas Group, an operational consulting firm, and chairman and CEO of Xelus Inc. He joined Textron Inc., in 1991, first as group vice president and segment president of its Aerospace Systems and Components group, and later as chairman and chief executive officer of Bell Helicopter Textron Inc.

He previously held leadership positions with United Technologies Corporation (UTC), including president and chief executive officer of Hamilton Standard, a UTC division.

AAR is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation 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.

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled “Risk Factors”, included in the Company’s May 31, 2007 Form 10-K. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company’s control. The Company assumes no obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR’s filings with the Securities and Exchange Commission.