WOOD DALE, ILLINOIS (October 18, 2007) - AAR (NYSE: AIR) today announced that its Defense Systems & Logistics business unit has signed a one-year agreement with Textron Marine and Land to provide logistics and inventory management support services for the repair of M1117 Armored Security Vehicles (ASV) at the Red River Army Depot in Texarkana, Texas. To support the program, AAR has opened a second warehousing facility near the Red River Army Depot.

"We're excited about building upon our relationship with Textron Marine and Land in support of its repair operations at the Red River Army Depot," said Jim Clark, Group Vice President of AAR's Aviation Supply Chain Group. "This is our second operation supporting U.S. Army vehicles and this program expansion in support of the U.S. Army is a testament to the flexibility and scalability of AAR's supply chain management capabilities."

Through its Defense Systems & 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 aerospace and defense 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.

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.