WOOD DALE, ILLINOIS – October 8, 2008 – AAR Brown International today announced the successful testing of the Battlespace Command and Control Center (BC3) AFCENT and its subsequent delivery to the U.S. Air Force. The BC3 system was developed to support CENTAF’s Warfighter Urgent Capabilities Need (WUCN) request to replace a legacy air control capability. BC3 presents the Air Force with a robust Command and Control (C2) capability to conduct aircraft control and airspace management in Operations Iraqi Freedom and Enduring Freedom (OIF/OEF). One of the important requirements for this system was to undergo ground-up rapid development, which included design, manufacture, test, and delivery in less than one year. AAR Brown International was able to achieve this goal as the BC3 is based on existing technology that the business is familiar with and has integrated on a smaller scale in U.S. Army and Air Force Tactical Operation Centers (TOC).

The BC3 was assessed by the Air Force during developmental and operational testing and most recently completed a Joint Interoperability Test (JIT) and an Air Force System Interoperability Test (AFSIT). A vehicle-mounted BC3 Mobile Training System was delivered to Air Force Command and Control Units in late January 2008 to assist and support crew preparation for using the advanced BC3 systems in a wartime environment.

Tested by the Air Force and joint communities, the BC3 exceeded expectations from a C2 perspective and is an improvement over the existing legacy AF C2 system. The BC3 presents numerous software enhancements and a robust combat capability since its predecessor was first fielded in support of NORAD’s air defense operations following the 9/11 terrorist attacks. At the conclusion of the final build, the BC3 will use a variety of certified and tested systems to provide the warfighter with a robust data link and an air track fusion C2 platform.

The BC3 was developed under the direction of HQ Air Combat Command, Langley AFB, Virginia. BAE Systems Technology Solutions & Services is the prime contractor and AAR Brown is a subcontractor for the BC3 C2 system. Together, the team was able to rapidly produce the BC3.

During AAR’s fiscal year 2008, 37 percent of AAR’s business was in support of defense customers. AAR was also recently included among the Top 100 defense companies in the world according to an annual ranking published by DefenseNews in August 2008.

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 & Overhaul; Structures & Systems and Aircraft Sales & 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, 2008 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.