WOOD DALE, ILLINOIS (June 18, 2003) - AAR (NYSE: AIR) announced today that they have signed an agreement with Aero Mongolia under which AAR Aircraft Component Services - Amsterdam will provide component management and repair for Aero Mongolia's fleet of Fokker 50's. Aero Mongolia, based in the capital city UlaanBaatar, Mongolia, operates a fleet of two aircraft and expects to grow to four by the end of the year. Under the agreement, AAR will manage all warranty work and provide comprehensive maintenance, repair and overhaul support for all the Line Replacement Units on the airline's Fokker 50's.

"We are pleased that Aero Mongolia has selected AAR to provide total support for their fleet of F50's," said Frank Spring in't Veld, Vice President & General Manager for AAR Aircraft Component Services. "Our ability to provide comprehensive component oversight and support for Aero Mongolia's Fokker 50 fleet was a significant factor in their decision. We look forward to working with this outstanding airline."

AAR Aircraft Component Services - Amsterdam, an operating division of AAR, services rotable components with AOG service 24 hours a day, 365 days a year, at its state-of-the-art facility equipped to repair, overhaul, and maintain more than 22,000 parts. Inventory includes components for large commercial aircraft such as Boeing/McDonnell Douglas and Airbus, as well as regional aircraft such as BAe, Fokker, ATR, Embraer, Bombardier and Saab. The facility is also an authorized warranty repair station for manufacturers such as Allied Signal, Aerospatiale Canada, AMETEK, Kollsman and many others.

AAR is the leading provider of aftermarket support to the worldwide aviation/aerospace industry. Products and services include customized inventory management and logistics programs, encompassing supply, repair and manufacturing of spare parts and systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world. Further 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, depending on a variety of factors, including: implementation of information technology systems, integration of acquisitions, marketplace competition, economic and aviation/aerospace market stability and Company profitability. 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.